Reuters reported on October 5 that the Iranian parliament approved a monetary system reform that will remove the four zeroes from the face value of the rial in the next few years to simplify transactions. This move stems from years of high inflation that have caused severe currency depreciation. The chairman of the parliament's economic committee said the reforms would not take effect immediately and that the central bank would have a two-year preparation period, followed by a three-year transition period. Some lawmakers believe that abolishing zero cannot restore the reputation of the currency, but only enhance its actual value. Previously, Syria had taken similar measures.
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According to reference sources, Reuters reported on October 5,Iran's parliament has approved a comprehensive reform of its monetary system that will remove its national currency from four zeroes in the coming years.To simplify transactions after years of inflation.
According to data from the website "Bombast", which tracks currency exchange rates,Over 35% inflation over the years has caused the Iranian Rial to fall to $1 against $1150,000 on the free market., which makes people feel numb to the face value of paper money or financial statement numbers.
After parliament settled opposition to the Constitutional Guardians Committee blocking the passing of a multi-year bill, Iranian state media on Friday that the monetary reform plan had been approved.
Reports said that the Economic Committee of the Iranian ParliamentThe PresidentShamsoldin Hussein told state television: "The name of the currency will still be rial, and the reform will not happen overnight. The central bank has up to two years to prepare for this reform. After that, there will be a three-year transition period, during which two denominations of currencies will be used at the same time."
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 MP Hussein Samsami on October 5 as saying: “The reputation of a country’s currency cannot be restored by abolishing the four zeros.
In the face of high inflation, several countries have tried to remove a few zeros from their national currency as a response.Venezuela has carried out several rounds of monetary reforms in recent years, but continues to suffer from high inflation.
According to previous news, Reuters reported on August 22nd that, judging from the information disclosed by seven people familiar with the matter and the documents reviewed by Reuters reporters, Syria will issue new banknotes and remove two zeros from the currency to restore public confidence in the severely depreciated Syrian pound.
The move is aimed at strengthening the Syria pound because of the fact that in Bashar al-ArabSadeThe PresidentAfter stepping down in December 2024 and ending the country's 14-year conflict, the purchasing power of the Syria pound has dropped to an all-time low.
Syrian Central Bank Governor Abdul Khadir Hussein confirmed the move, saying the revaluation was a strategic pillar of fiscal and monetary reform.
He told Saudi state-owned Arab TV, “We have formed a committee with experts from public and private banks and central banks to determine the requirements for ‘monetary’ reforms’ and called the issuance of new currencies ‘necessary’.
Since the outbreak of the war in 2011, the Syrian pound has depreciated by more than 99%. At present, the exchange rate is about 10,000 pounds to one US dollar, compared with 50 pounds to one US dollar before the war.
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