MeaningHemmat in EconomicsIran and How It Is Calculated
Have you come across the word “Hemmat” in official reports, economic news, or financial circles but didn’t understand what it means? Don’t worry, you’re not alone! Besides its usual meaning, this term has become very important in Iran’s economy. In this article, we will explain “Hemmat” in Iran’s economy and see how this new term is calculated. Stay with us to find the answer: How many Toman is one Hemmat?
What does Hemmat mean? Two meanings of Hemmat
The word Hemmat has two meanings: one in literature and ethics, and the other in economics.
- The first meaning, which relates to literature and morals, points to qualities like kindness, generosity, willpower, decision, determination, wish, effort, and striving.
- The second meaning, which pertains to economics, is an abbreviation for a practical amount of 1 trillion Toman.
What does Hemmat mean in economics?
Hemmat is short for 1,000 billion Toman and is pronounced “Hemmat”. It isn’t an official currency unit but a common term to easily refer to very large amounts.
Because of inflation and increasing transaction sizes, using “Hemmat” makes it easier to quickly express and analyze large numbers instead of long digits.
For example, in the stock market, the market value of Zob-Ahan Steel of Isfahan is about 330,200 billion Tomans, which equals 33 Hemmat. This demonstrates how “Hemmat” helps in quickly understanding large transaction volumes. So, “Hemmat” is a language tool that simplifies analyzing big numbers in today’s economy!
For a clearer understanding, look at the table below:
Note: The currency unit Hemmat officially started use in official documents from November 2020.
Do not mistakenly say “Hemmat” when referring to a trillion rials. Because the official currency in Iran is the Rial and Hemmat is expressed in Tomans, confusion might occur.
Using shortcuts like “Hemmat” to simplify large economic numbers could have negative long-term effects on the economy and people’s understanding of money’s worth.
What does Hemmat mean in the stock market?
In finance and especially in the stock market, “Hemmat” is a common unit representing 1,000 billion Tomans. For example, if daily trading amounts to 7.5 Hemmat, it equals 7,500 billion Tomans of trades.
Using “Hemmat” in the stock market is similar to its use elsewhere, serving as an abbreviation to avoid repeating huge numbers. In recent years, with inflation and company expansion, “Hemmat” has become more common since 1,000 billion Tomans is now a typical transaction amount.
The term “Hemmat” in Iran’s rising inflation economy
In Iran’s inflation-driven economy, terms such as “Hemmat” (meaning 1,000 billion Tomans) are appearing quickly, and they may be replaced by newer terms soon. A few years ago, figures like 1,000 billion Tomans were hard to imagine, but now, since stock values sometimes surpass 10 “Hemmat,” such numbers are common. Continuing inflation could lead to market values over 100 or even 1,000 “Hemmat,” prompting new economic words for these big figures.
What does 5 Hemmat mean?
Since each Hemmat is 1,000 billion Tomans, how much is 5 Hemmat?
Quick math shows that 5 Hemmat equals 5 trillion Tomans.
How do you pronounce Hemmat?
In economics, Hemmat, which is short for “thousand billion Toman,” is pronounced as “Hemmat.” When a amount exceeds one trillion Tomans, this shortcut is used to make it easier. For instance, instead of saying five trillion Tomans, we say five Hemmat.
