Bill on national currency reconversion submitted to Parliament

TEHRAN, Aug. 21 (MNA) – Iranian President Hassan Rouhani submitted the bill on reforming monetary and banking law including ‘eliminating four zeros from national currency and national currency reconversion’ to the Parliament.

According to this bill, Iran’s national currency will be changed from rials to toman and each toman would be equal to 10,000 rials or 100 rial parseh.

On July 31, the government approved a plan to take four zeros off the national currency in a bid to curb the tide of liquidity and impede rial depreciation.

The plan to remove four zeros from the rial has been on the government agenda since it was proposed about seven month ago by Central Bank of Iran as part of a broader plan to revisit the monetary system.

The measure stipulates change in the nominal value and the face of bank notes and coins. 

On August 6, Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said that crossing out four zeros from national currency, Rial, will have no impact on inflation rate adding that the central bank is ready to implement the plan.

He explained that removing four zeros will have no costs for the government since CBI annually prints about 700 million of new bank notes and replacing the old ones with the new ones is a routine procedure.

He said that lopping off of four zeros from national currency will for sure facilitate daily transactions but to get implemented the government’s ratified plan needs Parliament’s approval, as well.

HJ/dolat.ir 326641

News Code 149142

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