Economists have recently proposed that the government knock the zeros off in a bid to boost confidence in the currency that has been losing value due to high inflation as well as to simplify finances.

However, experts have warned the Central Bank of Iran (CBI) to conduct thorough studies prior to launching the plan since it can turn out to be a "double-edge sword".

Talking to the Persian weekly "Atieh", Chairman of the Majlis Economy Commission Mohammad Shahi-Arablou contended that implementation of the plan is necessary in current economic condition.

"If we can drop zeros from the banknotes, it can boost the purchasing power of the people and cut costs for maintenance and issuance of banknotes."

Monetary experts maintain that given the decline in the value of the rial, high transportation costs, and issuing new paper bills as well as accounting headaches, lopping offs the zeros will help strengthen the economy and facilitate transactions.

Former CBI deputy governor for rial and currency issuance Jalal Jalilian recalled that the issue was raised in the top bank several years ago and had been placed on CBI agenda several times.

In recent years, the former official said, the issue has come to fore and put on the agenda of Evaluation Office of the Central Bank in an attempt to simplify transactions.

A comprehensive report has been prepared, he said, explaining it suggests that advantages of the plan outweigh its disadvantages and its adverse impacts can be cubed through precautionary measures.

Mehdi Taqavi, another expert, maintains that time is ripe for implementing the plan since accounting becomes a headache when the value of a currency declines.

However, some experts opine that if the plan is undertaken without comprehensive assessment, its implementation can add to inflation and exert extra financial burden on state treasury.

Masoud Nili, an economist, noted that zeros should be lopped off once the liquidity problem was overcome otherwise the plan would only facilitate cash transactions.

An academician Mohammad Tabibian observed that the move would not resolve inflation concerns, suggesting economic planners to avoid such "pompous pretense".

He said that the zeros should be dropped when its numbers are high as was the case in Turkey.

Turkey recovered from major economic crises in recent years after it lopped six zeros off its national currency to create the New Turkish Lira and facilitate cash transactions in 2005.