Recently, Iran decided to replace its old currency to a new one.
Quoted from Wikipedia
A proposal has been agreed to by the Iranian parliament to drop four zeros, by replacing the rial with a new currency called the toman
I have started studying basics of economics very recently. And I assumed the previous and new situations to be something like:
Imaginary Situation 1
Value of each coin = $1 Total coins = 1000 Value = $1000
Imaginary Situation 2
Value of each coin = $10 Total coins = 100 Value = $1000
Since, there are less number of coins it might be easier to perform transactions. That's my assumption of the possible benefits of this scheme.
Is the assumption correct?
Any other benefits of such a scheme?