IRAN PARLIAMENT APPROVES MONEY OVERHAUL-In a bid to simplify transactions after years of inflation
Iran has gained parliamentary approval for a monetary overhaul to remove four zeros from its national currency over the next few years to simplify transactions after years of inflation.
Years of inflation above 35% have reportedly caused Iran’s currency to plunge to 1,150,000 rials to the dollar on the free market, making it difficult for people to make sense of bills or financial statements.
The approval was reported by state media on Sunday (October 5) after parliament had resolved objections from the Guardian Council to pass a bill that had been in the works for several years.
The head of parliament’s economic commission, Shamsoldin Hossein,who said the rial currency remains and changes won’t be overnight, further added that the central bank has up to two years to prepare for the change. After which, there will be a transition period of three years when both denominations will be used.
Hossein also said the move will make the rial easier to use in transactions and calculations, alleging that high inflation had severely diminished the usefulness of banknotes. This move however remains contentious.
