Iran's Parliament expects to finalize removal of zeros from national currency

Finance Materials 19 April 2021 17:19 (UTC +04:00)
Iran's Parliament expects to finalize removal of zeros from national currency

TEHRAN, Iran, Apr.19


Iran's Parliament's Economic Commission is expected to approve the plan to remove four zeros from the national currency, spokesman of Parliament Economic Commission Mehdi Toghyani told Trend.

"The plan to remove four zeros has been approved by the parliament but the Guardian Council has called for a review due to some error in one article that needs correction. So the final approval was delayed, " Toghyani said.

"Part of this plan was about Iran's international commitments and presumed fault that was called by the Guardian Council was about this issue and that the Central Bank of Iran (CBI) should clarify the country's commitments in relation to implementation of this plan - for example Iran's commitment toward the International Monetary Fund," Toghyani said.

"The issue has been discussed at the parliament and the Central Bank of Iran provided explanation and asked for total removal of the article related to international commitment and the IMF," he said.

"In terms of exchange rate, we are changing national currency from rial to toman," he said.

"The prediction over possible finalization of the plan would depend on how the Guardian Council accepts the CBI's explanation," Toghyani said.

"The plan would not have any specific economical effect. It won't affect inflation or macroeconomic indicators," he said. "The calculations will become easier."

The idea of removing four zeros from Iran's national currency has been floating around since 2008, but gained strength after 2018, when US President Donald Trump withdrew from the 2015 nuclear deal and re-imposed sanctions, that led to devaluation of the rial.