0542 GMT April 22, 2021
Removing four zeros from the national currency, the rial, will help facilitate people’s financial transactions, said the governor of the Central Bank of Iran (CBI).
In an address to an open session of the Iranian Parliament on Sunday, Abdolnaser Hemmati said that at present there are nine billion banknotes in circulation in Iran, according to IRNA.
He also noted that once the zeros are removed, the number of banknotes in Iran will stand at 2.2 billion, adding that the move will also lead to the coins returning to the country’s economic cycle.
Hemmati said the issue of improving the appearance of the national currency was a necessity which has been discussed and studied frequently for a long time.
The national currency has practically lost some of its value to inflation, the CBI head noted, adding that people do not use the rial to refer to their national currency and prefer the toman – each 10 rials equals one toman.
The goal pursued by revaluating the rial tenfold and reverting to the currency’s old name, the toman, is to make trade and financial transactions and affairs easier for the people of the country, he said.
The rial’s devaluation has practically led to coins’ exclusion from people’s financial transactions, Hemmati added, noting that producing a 500-toman coin (11 cents), costs 800 tomans (19 cents) for the Iranian government.
To restore balance to the country’s monetary system, “we require a four-year period,” Hemmati said.