IFP Exclusive

Iran to Remove Four Zeros from National Currency

The government of Iranian President Hassan Rouhani approved on Wednesday a plan to lop off four zeros from the country’s national currency in a bid to help the Iranian rial regain its value in the face of the US sanctions.

The motion, proposed by the Central Bank of Iran, was ratified during a cabinet session.

The plan will be proposed to the Parliament as a double-urgent motion, the government spokesman Ali Rabiei said.

To be signed into law, the bill needs to be ratified by the lawmakers and the Guardian Council.

The CBI says its governor, Abdolnasser Hemmati, has already made it clear for the lawmakers at a parliamentary commission meeting that the Central Bank has full control over the foreign currency market and administers the situation to maintain the balance of currency rate with prudence and with regard to the market factors.

Proposals to remove four zeros from the currency have been floated since 2008, but the idea has gained strength as the rial lost more than 60 percent of its value in 2018 despite a recent recovery in defiance of US sanctions.

The currency was trading at about 119,000 rials per US dollar on the unofficial market on Wednesday, according to foreign exchange websites.

Rial weakness disrupted Iran’s foreign trade last year and helped boost annual inflation fourfold to nearly 40 percent in November.

In December 2016, Iranian President Hassan Rouhani’s cabinet had approved a motion put forward by the Central Bank to change the national currency from rial to toman, leading to a ten-fold decrease in banknote denomination.

Toman has been long used as the unofficial unit of money in Iran, while rial and dinar have been the country’s formal currency and non-decimal currency, respectively.

IFP Editorial Staff

The IFP Editorial Staff is composed of dozens of skilled journalists, news-writers, and analysts whose works are edited and published by experienced editors specialized in Iran News. The editor of each IFP Service is responsible for the report published by the Iran Front Page (IFP) news website, and can be contacted through the ways mentioned in the "IFP Editorial Staff" section.

Recent Posts

Iran says increased number of its centrifuges in response to the IAEA resolution

The Atomic Energy Organization and the Iranian Foreign Ministry announced that, in response to the…

12 minutes ago

Iranian, Belarusian tourism ministers meet on facilitating tourist movement

Iran's Minister of Cultural Heritage, Tourism, and Handicrafts, Seyed Reza Salehi Amiri, met on Thursday…

3 hours ago

Unscheduled visit by Qatari prime minister to Tehran sparks speculation

Reports emerged by Iranian daily Donya-e Eqtesad suggest that the Qatari Prime Minister and Minister…

18 hours ago

ICC issues arrest warrant for Netanyahu, Gallant for ‘war crimes’ in Gaza

The International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu,…

19 hours ago

Iran to respond to Europe’s “non-technical” move: Foreign Minister

As France, Germany, and the United Kingdom submit an anti-Iran draft resolution to the International…

19 hours ago

President Pezeshkian criticizes western hypocrisy on human rights

During his visit to Sistan and Baluchestan province, Iranian President Masoud Pezeshkian delivered sharp criticism…

20 hours ago