Project to remove zeros from Iran's deteriorating currency, 24 DEC

  Project to remove zeros from Iran's deteriorating currency

The Iranian government has submitted a bill to the Islamic Consultative Assembly to remove four zeros from the national currency and convert its unit from the rial to the toman.

The government of Masoud Pezeshkian stated that the purpose of preparing this bill and submitting it to parliament is to “reduce the problems caused by chronic inflation and the decline in the purchasing power of the national currency,” which in recent years has led to a significant increase in daily transactions and a “clear decline in the reputation of the national currency” compared to other currencies.

Tasnim News Agency reported that this bill was approved by the second government of President Hassan Rouhani in August 2019, and has now been submitted to the parliament as an emergency bill in the fourteenth government. 

An attempt is being made to preserve the “reputation” of the national currency by removing four zeros, while the Iranian rial is currently the least valuable currency in the world, and its value continues to decline, as it was exchanged against the dollar for more than 760,000 Iranian rials.

Although removing four zeros from the national currency may make trading easier in the market, the government has not explained how it expects inflation to be reduced by removing four zeros from the national currency. link