Source: Reference News
Reference News Network reported on October 5 According to a Reuters report on October 5, Iran's parliament has approved a comprehensive reform of the monetary system, removing four zeros from the face value of its national currency in the next few years to simplify transactions after years of inflation.
The report mentioned that according to data from the "Bambasto" website, which tracks currency exchange rates, inflation of more than 35% over the years has caused the exchange rate of the Iranian currency rial to fall to 1150000 rials on the free market, thus making People feel numb to the face value of paper money or financial statement figures.
After Parliament resolved the Guardian Council's objections to blocking the passage of a bill that had been in place for years, state media reported on the 5th that the currency reform plan had been approved.
Sham Soldin Hussein, chairman of the Iranian Parliamentary Economic Committee, told state television: “The name of the currency will still be Rial and the reform will not take place overnight. The central bank has up to two years to prepare for the reform.
Hussein said the move would make the rial easier to trade and calculate, adding that high inflation had severely weakened the practicality of paper money.
But the move will still be controversial. The Iranian student news agency quoted lawmaker Hussein Samsami on Friday as saying: “The reputation of a country’s currency cannot be restored by abolishing four zeros.
In the face of high inflation, many countries have tried to remove a few zeros from the face value of their currencies as a countermeasure. Venezuela has carried out several rounds of monetary reforms in recent years, but it continues to suffer from high inflation. (Compiled by Cao Weiguo)