In an effort to streamline transactions following years of inflation, Iran has received parliamentary approval for a monetary revamp that will eliminate four zeros from its national currency over the next years.
According to currency tracker bonbast.com, years of inflation exceeding 35% have forced Iran’s currency to plummet below 1,150,000 rials to the dollar on the free market, making it challenging for individuals to understand financial accounts or bills.
After parliament overcame the Guardian Council’s objections to a bill that had been drafted for years, official media confirmed the ratification on Sunday.
Shamsoldin Hossein, the president of parliament’s economic commission, told state television that “changes won’t be overnight and the currency remains the rial.”
“The central bank has a maximum of two years to lay the foundation for this transformation.” Following that, a three-year transition will occur during which both denominations will remain in use.
According to Hossein, the action will enhance the rial’s utility in transactions and calculations, noting that significant inflation has greatly reduced the effectiveness of banknotes.
“A national currency’s value isn’t restored by eliminating four zeros.” “Rather, this can solely be achieved by enhancing the actual worth of the currency,” Iranian MP Hossein Samsami was reported as stating on Sunday by the Iranian Students News Agency.
Multiple nations have attempted to remove zeros from their currency in response to significant inflation. Venezuela has undergone multiple monetary reforms in recent years but still struggles with significant inflation.
