In Iran, a bill is preparing the erasure of four zeros of its currency, the Rial, which has continued to dive for several years. A new Rial would be worth 10,000 Rials today.
Soon four zeros less for the Iranian currency. The Economic Commission of the Iranian Parliament approved a bill on Sunday to suppress four zeros of its national currency in recent depreciation in recent years, especially due to international sanctions, announced a state media.
“Today’s meeting of the Economic Commission approved the name Rial as a national currency, as well as the abolition of four zeros,” announced Icana, the parliament site, citing the president of the commission, Shamseddin Hosseini. The Governor of the Central Bank, Mohammad Reza Farzin, said in May that the Iranian Rial “does not enjoy a favorable image” in the world economy.
According to the bill, a new Rial would be worth 10,000 current rials and would be subdivided into 100 gherans, a unit comparable to the penny, according to Icana. The proposal was presented for the first time in 2019, before being abandoned. It must be subject to the vote of the Parliament and obtain the approval of the Guardian Council, a body responsible for examining the laws.
Retour de Donald Trump
In recent years, the Rial has continued to dive in particular after the American withdrawal in 2018 of an agreement on the Iranian nuclear program and the restoration of sanctions against Tehran. This trend has particularly accelerated since the return in January to the White House of the American President Donald Trump, the first mandate of which was marked by a so -called “maximum pressure” policy against Iran.
On Sunday, a dollar was exchanged at the black market at 925,000 Rials, against 913,500 the day before, according to the economic daily Donya-E Eqtesad. On Monday, the spokesman for the Economic Commission of Parliament, Hakem Mamkan, said that the government’s proposal was aimed at “facilitating transactions and audits within” state institutions.
To simplify transactions, Iranians have for years called their currency “Toman” by taking zero to the value of the Rial, which creates a source of confusion for foreign visitors.