The Economic Commission of the Iranian Parliament approved this Sunday a bill to suppress four zeros of its national currency in constant depreciation on Sunday, announced a state media. A phenomenon attributed in particular to international sanctions. The governor of the central bank, Mohammad Reza Farzin, had already declared 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.
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 American President Donald Trump, the first mandate of which was marked by a so-called “maximum pressure” policy against Iran. This Sunday, for example, a dollar was exchanged to the black market at 925,000 Rials, against 913,500 the day before, according to the economic daily Donya-e Eqtesad.
