Iran plans to slice off four zeros from national currency
The Iranian government submitted a bill to the Parliament on Saturday, proposing the removal of four zeros from the national currency and the conversion of its unit from rial to toman.
The administration of President Massoud Pezeshkian stated that the goal of the legislation is to reduce the setbacks caused by long-lasting inflation and the decline in the purchasing power of the national currency.
On Saturday, Tasnim News Agency reported that the bill was approved by the cabinet on July 31, 2019 under then-president Hassan Rouhani and has now been submitted as a bill under the current government.
The bill specifies that the new unit of currency will be “toman,” with one toman being equivalent to 10,000 current rials and 100 “parsehs.”
To facilitate the transition to the new system, a two-year “transition period” will be established for the simultaneous use of tomans and rials.
During this period, the Central Bank of Iran (CBI) will be required to make the necessary arrangements for the collection and replacement of rial banknotes and coins with tomans.