Iranian rial has been battered by escalating US sanctions on the country since President Donald Trump’s decision to pull out of Tehran’s nuclear deal with world powers over a year ago.
Thursday 22, August 2019
The Iranian president has sent a bill to parliament that would cut four zeroes from the value of the Islamic Republic’s currency, as tensions remain high between Tehran and Washington.
President Hassan Rouhani’s government showed that it is serious about an idea planned for some time in Iran by sending the bill to lawmakers, where people discuss monetary transactions in both rials and—informally but more commonly—in tomans, which is worth 10 rials.
If the bill is passed by parliament and approved by lawmakers, the Central Bank of Iran will in effect devalue the rial and rename it as toman. The regulator would have two years to create the new toman currency, returning a currency name that has not been officially used since the 1930s.
Iran’s economy was long hobbled by years of sanctions over its nuclear programme, sparked by Western fears that Tehran could use it to build a nuclear weapon.
In 2018, money-exchange shops shut down for five months under a government order as it tried to control the rapid rial depreciation by imposing a rate of 42,000 to $1 during that time, reported Associated Press.