Iran approves plan to cut four zeros from falling currency
#GS3 #Economy #Toman
Iran's parliament has passed a bill allowing the government to slash four zeros from the rial, Iranian state media reported on Monday, after a sharp fall in the value of the currency as a result of crippling U.S. sanctions.
- Iran's national currency will be changed from the rial to the Toman, which is equal to 10,000 rials, under the bill.
- The idea of removing four zeros has been floated since 2008, but gained strength after 2018, when U.S. President Donald Trump exited Iran's 2015 nuclear deal and reimposed sanctions, as the rial lost more than 60% of its value.
- The Guardian Council, a body of conservative clerics that supervises Parliament, is expected to ratify the law, and then the Central Bank will have two years to implement the change — removing rials from circulation and issuing tomans instead.