The Iranian central bank wants to cancel four zeros in the currency Rial in the fight against the high inflation in the country. „We have submitted a draft to the government in this regard, and we hope that this important step will be implemented very soon,“ said Federal Reserve Chairman Abdolnaser Hemmati today.
The measure is necessary for the implementation of bank reforms in Iran, said Hemmati, according to the news agency ISNA in Tehran.
Rial lost over 60 percent in value
Iran is in an acute currency crisis because of sanctions imposed by the US. The Rial has lost over 60 percent in value, the inflation rate has increased dramatically. According to observers, the crisis could worsen in the coming months – especially if sanctions hit oil exports, the country’s main source of revenue. The deletion of four zeros from Rial amounts could have at least a psychological effect. Many Iranians currently have to pay more than a million rials for a simple supermarket purchase.
As early as December 2017, the central bank wanted to remove at least a zero. The Toman should then replace the rial again. He was considered the country’s national currency until 1925, before being replaced by the Rial. However, the Persians themselves have been using only the term Toman for decades, because the conversion was always very simple – a Toman is equivalent to ten Rial.
