Decade of Inflation: Iran Prepares to "Remove Four Zeros" from National Currency
Kyiv • UNN
The Iranian parliament has approved a bill on the redenomination of the rial, which provides for reducing the currency's denomination by four zeros. This will simplify calculations and reduce the cost of printing banknotes, as the rial has significantly depreciated due to international sanctions and political uncertainty.
The Iranian government plans to "remove four zeros" from the denomination of its currency, the rial, to simplify financial calculations and reduce budget expenditures. This was reported by Financial Times, informs UNN.
Details
It is noted that the economic committee of the country's parliament approved the government's bill on the redenomination of the rial. In particular, Shamseddin Hosseini, the head of the committee, stated that the new currency will still be known as the rial, with one unit being equivalent to 10,000 rials in current terms.
The proposed reduction in the number of digits is intended to simplify financial calculations and accounting, as well as reduce the cost of printing banknotes
The publication indicates that the Iranian currency has undergone significant devaluation due to international sanctions that have isolated the country from the global banking system and hampered its economy.
The rial has further weakened against the dollar in recent days amid continued political uncertainty following the 12-day war between Israel and Iran in June
It is also noted that Iran has been considering currency reform since the 1990s. The bill must be officially submitted to parliament for approval and will ultimately require the approval of the Guardian Council - a constitutional body that reviews new legislation - to become law.
Recall
In late July, the US imposed sanctions on more than 50 individuals and vessels associated with Iran's shipping network. The network transports oil from Iran and Russia, generating billions of dollars in revenue.