Cabinet studying currency reconversion, lopping off 4 zeroes of nat. currency

MNA – According to the request of the Central Bank of Iran (CBI), the economic committee of the cabinet has on agenda the plan to eliminate four zeros from the national currency rial and to introduce a new one.

According to this plan, the new currency, named Toman, which has been the unofficial currency used by the people, will be equal to 10,000 rials.

The decision aims to reduce the costs of printing coins and banknotes, make the monetary system more efficient and etc., and is expected to have a positive psychological impact in the short-run.

The Rouhani administration ratified the plan to shift the national currency from Rial to Toman earlier in December 2016. However, it was decided to postpone implementation of the plan at the time due to some reasons including the expressed concerns about the time unfitting economic conditions which would ignite inflation and economic instability.