Structural Reforms First, Rial Revaluation Later

Head of Tehran Chamber of Commerce, Industries, Mines and Agriculture says lopping off zeros from the national currency will not produce the desired results unless the initiative is intertwined with structural reforms. 
Addressing the TCCIM  board of representatives Tuesday, Masoud Khansari noted that restructuring macroeconomic variables is a prerequisite if the measure is to deliver.    
The government last week approved a central bank proposal based on which four zeros would be shaved off the rial and the legal tender will be changed to the commonly used ‘toman’.
To become law the bill must be endorsed by the parliament.
Khansari pointed to the galloping inflation as one of the key economic variable, which if not harnessed will render the whole plan futile. 
If chronic inflation continuesd, more zeros will be added to the currency over time.