Baku, Azerbaijan, Aug. 7
By Elnur Baghishov – Trend:
Removal of four zeros from Iran's national currency will cause changes in its value in relation to dollar, Governor of the Central Bank of Iran Abdolnaser Hemmati told reporters after a meeting of the Cabinet of Ministers of Iran, Trend reports referring to IRNA.
He added that a sum equivalent to about 820 tomans (app. $0.19) is being spent for every 500 tomans (app. $0.11) of metallic money. "However, with the implementation of the project, all this metallic money will be collected to be then melted and used for other purposes," he said.
It was noted that the usage of banknotes issued in Iran is also high, and 700 million banknotes are destroyed annually (due to being rendered useless from overuse). However, it is aimed to half this figure via the aforementioned project. According to Hemmati, the removal of four zeros will also reduce the costs of destroying the banknotes.
The price of the US dollar is currently set at 120,000 rials in the Iranian black market. Due to the disproportionate exchange rate, the Iranian national currency is visually perceived to have a much lower value than the dollar. By implementing the above-mentioned change, Iran is trying to make the national currency more valuable.