CBI seeks to slice four zeros off currency: Hemmati

MNA – The Central Bank of Iran (CBI) is looking to take four zeros off the national currency in a bid to curb the rising tide of liquidity and help the rial regain part of its lost value, an MP quoted the CBI governor as saying on Sunday.

Hamid Reza Hajibabaei, head of Velaie Fraction of the Parliament, said that during today’s session, CBI Governor Abdolnasser Hemmati urged the need to take necessary measures to help the rial, which has weakened steadily over the past months.

“Putting the current volume of liquidity at 1.7 quadrillion rials, and referring to its 30% drop in value due to [the recent] inflations, Hemmati said CBI is seeking to slice four zeros off the national currency, urging that the prerequisites should be achieved as soon as possible,” Hajibabai added.

CBI has vowed to put every effort into action to make the redenomination of the rial, which currently stands at around 10,000 to the US dollar.

The volatility in currency and gold markets further intensified after US President Donald Trump announced in May that he was pulling his country out of the multilateral nuclear deal Iran signed with world powers in 2015.

The inflation rate in the last Iranian month (ended Dec. 21) reached 18%, indicating 2.4% increase compared to its preceding month, according to figures released by the Statistical Center of Iran Sat.

The index for prices of goods and services stood at 151.7, indicating year-on-year inflation rate of 37.4% compared to corresponding month last year. It means that the Iranian households spent 37.4% more than the same period last year on a set of goods and services of the same type.