Sputnik- This year, Iran�s national currency, the rial, has seen several big drops against the United States dollar, reaching a record low in early-December.

At the time, it was also reported that the Iranian government had decided to�revalue its rial tenfold and revert to�the currency�s old name, the toman.

The current exchange rate of�the Iranian currency is 32,376/$1. However, the government eyes redenomination of�the rial, in�an attempt to�avert the costly process of�additional currency issuance. Iranian economic analyst Hushyar Rostami explained that the redenomination planned by�Tehran is different from�similar attempts by�other countries.

"When inflation rate is high the government wants to�decrease it. There was a similar situation in�Turkey, Argentina and Eastern Europe. The simplest option is additional currency issuance, but�it is outdated. An optimal scenario is redenomination of�the national currency," Rostami told Sputnik Persian. Currently, for�example, $10 is exchanged for�hundreds of�thousands rials. Such an exchange rate seriously complicates accounting transactions in�major companies and banks.

According to�the economist, if the government wants to�fight high inflation rate and redenominates its currency it does not need to�carry out�additional money issuance. "What Tehran is considering is an example of�typical redenomination. The rial exchange rate against�dollar will not change. The banknotes will also remain unchanged," the economist said. The redenomination process is very expensive, and currently there is a discussion underway in�Iran on�how to�handle the situation.

"Some say that it�s better to�cut one zero from�the banknotes, other say that four zeroes should be cut. The estimated cost is $2.5 trillion. All factors should be taken into�account before�a final decision is made," Rostami said.

According to�the law, redenomination of�the national currency must be reviewed by�the parliament. The process also involves the Central Bank and the national Finance Ministry. "Redenomination is crucial for�the Iranian economy because the country needs stimulated economic growth, a low and stable inflation rate and a predictable exchange rate," Rostami concluded.