Soon four zeros less for the Iranian currency. The Iranian Parliament Economic Commission approved a bill on Sunday to suppress four zeros of its national currency in the recent depreciation in recent years, especially due to international sanctions, a state media announced.
“The current meeting of the Economic Commission approved the name Rial as a national currency, as well as the abolition of four zeros,” Icana announced, the Parliament’s 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 Pentavo, according to Icana. The proposal was presented for the first time in 2019, before being abandoned. It must be subject to the vote of Parliament and obtain the approval of the Guardian Council, an agency responsible for examining the laws.
Donald Trump’s return
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 accelerated particularly from the return to the White House of US president Donald Trump, whose first mandate was marked by a “maximum pressure” policy that is described in this way.
On Sunday, a dollar was exchanged in the black market with 925,000 rials, compared to 913,500 the previous day, according to Eqtesad Economic Daily Donya-e. On Monday, the spokesman of 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, the Iranians have called their currency “take” by bringing zero to the value of the rial, which creates a source of confusion for foreign visitors.
Source: BFM TV
