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An investigating Zeros Elimination of the National Currency and Its Effect on National Economy (Case study in Iran)

Safdari Mehdi and Motiee Reza

The value of national currency in each country is dependent on many factors, including: Position in the global economy, efficiency and cost of government, political stability, legal and judiciary to attract foreign capital, and the principles of international law and Both sides with international developments and so on. Reduction in the value of national currency leads to psychological and social effects, when, the national currency has low value, people tend to feel a kind of contempt with stronger currencies. Such as, a transaction can amount to 10 thousand dollars of America and the Iranian Riyals and one Saudi Riyals to be traded to the 2700 Iranian Riyals thus, it leads to excessive mental work for Iranian. Also, changes in currency value and volume leads to numerous health effects. With the devaluation of national currency, if the citizens move towards greater use of foreign currencies for their daily transactions, immediately, the government should allow its agenda to zeros elimination of the national currency. In economy, the most important of zeros elimination application is maintain the value of national currency. The results of this paper show that success rate is related to its implementation plan and the authorities, like many other projects. Naturally, in the end, correct and complete implementation of this project is to evaluate the benefit of the economy.