Central Bank of Iran: Denomination to be implemented within 2 years
BAKU, Azerbaijan, Feb. 20
By Elnur Baghishov - Trend:
The project of currency denomination in Iran and the removal of four zeros from the national currency will be implemented within two years, Trend reports referring to the website of the Central Bank of Iran (CBI).
In the past few years, steps to increase the number of ATMs and online transactions, as well as increase their quality, have been taken in Iran. However, due to high inflation and the lack of the government’s attention to the currency structure in the country, cash transactions have greatly increased.
The Central Bank of Iran said that the volume of banknotes in circulation has increased to a great extent (presently about 8 billion units), and this led to the increase in expenditures for issuing, collecting and withdrawing banknotes from circulation.
“In this regard, the Central Bank of Iran has studied the experience of different countries and prepared a draft bill on the removal of four zeros from the national currency and this draft bill was approved by the Iranian Cabinet of Ministers on Jan. 5, 2019,” reads the report.
The Iranian government approved the draft bill submitted by Central Bank of Iran, which proposed to remove four zeros from the national currency and change the currency from rial to toman (to be equal to the current 10,000 rials). The decision was also approved by the parliament.
The new policy is aimed to facilitate monetary transactions and maintain monetary efficiency. The bill was developed by the bank as part of a broader plan to reform the monetary system.