(Persia Digest) – The Spokesperson of the Iranian government has announced that a proposed bill allowing the elimination of four zeros from the national currency has been approved.
Speaking on the sidelines of the cabinet meeting, Ali Rabiei told reporters: “A bill allowing the elimination of four zeros from our national currency was approved at the cabinet meeting today.”
He stated that the details of the bill will be reviewed at a later cabinet meeting, adding: “We will try to send the bill to Parliament with an urgency statute.”
Persia Digest (PD) reports that reforms in the national currency of Iran, the rial, include the elimination three to four zeros and perhaps the name of the currency. The reforms are being considered due to high inflation rates and the devaluation of the rial. The Central Bank of Iran (CBI) had conducted a poll previously asking people and Parliament to propose a new name for the new currency.
In 1929, the toman was replaced by the rial as the official currency. But people still use the toman although the main unit is the rial and the toman is the subunit. Every 10 rials is the equivalent of one toman, but with the elimination of four zeros, every 10,000 rials will be equal to one toman.
High inflation, rial devaluation, accounting difficulties for large numbers, dangers of carrying large amounts of cash, high costs of printing banknotes and taking large volumes out of circulation have all contributed to the reform of the national currency.
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