BAKU, Azerbaijan, May 5
By Elnur Baghishov - Trend:
The decision of Iran's parliament on the denomination for the national currency and the removal of 4 zeros from the currency is a positive step, Member of the Economic Committee of the Iranian Parliament Mohammad Hassannejad told Trend.
According to Hassannejad, as Iran has lost its currency value as a result of inflation, there was a need to remove zeros from the currency.
Hassannejad added that the denomination of the currency and the abandonment of zeros will not have any effect on the growth of inflation in the country.
The MP said that on the other hand, Iranian citizens had difficulty in deciding which name to use, toman or rial.
Another problem is related to banknotes and coins. Thus, for every 5,000 rials banknote printing (about 11 cent), 4,000 rials funds (about 9 cent) are spent. The funds spent on the minting of coins is more than the value of the coin,” he said.
Yesterday (May 4), the Iranian parliament decided to change the national currency from rial to toman and to throw 4 zeros from the currency.
According to the decision, the name of Iran's new national currency is toman, and each 1 toman is equal to 10,000 rials. There will be a parallel circulation of toman and rial for a maximum of 3 years. The Central Bank of Iran must take steps to implement this law within a maximum of two years.