News ID: 268600
Published: 0145 GMT May 04, 2020

Iran’s Parliament approves plan to cut four zeros from currency

Iran’s Parliament approves plan to cut four zeros from currency

Iran’s Parliament has passed a bill allowing the government to slash four zeros from the rial, Iranian state media reported on Monday.

Iran’s national currency will be changed from the rial to the toman, which is equal to 10,000 rials, under the bill, Reuters reported.

The bill needs to be approved by the Guardian Council that vets legislation before it takes effect.

Iran’s state TV said the Central Bank of Iran will have two years to “pave the ground to change the currency to toman.”

The idea of removing four zeros has been floated since 2008, but gained strength after 2018, when US President Donald Trump exited Iran’s 2015 nuclear deal and reimposed sanctions.

A report by IRNA in August 2019, showed that Iran should spend around $160 million to implement the plan for overhaul of the national currency rial.

The projections were based on estimates about the total number of banknotes currently in circulation in the Iranian economy which the report said was about 8.8 billion, including the legal tenders issued and stamped by the banks to facilitate transactions, Press TV reported.

The report said the government would have to spend 2,240 rials ($0.018) for the destruction and replacement of each current banknote.

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