Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Iranian Rial


VIZIOIRAQI
 Share

Recommended Posts

So the fact that it is now gonna be called (re-named) The Toman.  Will this be affecting the actual physical currency at all ? Are we gonna be ok with the currency that we are holding at this moment .  Nothings changed other than just the name? Or ......are they gonna print new currency ?

Link to comment
Share on other sites

Iran is preparing to switch its national currency from the rial to the toman - a move that could boost the value of the country’s national currency against the US dollar.
Iran is preparing to switch its national currency from the rial to the toman - a move that could boost the value of the country’s national currency against the US dollar.

Iran is gearing to switch its national currency back to the toman – a move that would end the rein of the rial after around 90 years and also could boost the value of the country’s national currency against the US dollar. 

The administration of President Hassan Rouhani in a cabinet meeting on Wednesday approved the switch, as reported by the domestic media.  The plan still needs to be approved by the Parliament and later the Guardian Council that checks the laws against the Constitution and the Sharia law of Islam. Nevertheless, speculations over the impacts of the move are already emerging.

Valiollah Seif, the governor of the Central Bank of Iran (CBI) who reportedly proposed the switch, was quoted by the media as saying that the move is meant to facilitate the transactions by the public.  Seif emphasized that the rial had been literally removed from transactions in Iran for long in what he said was a result of rising inflation over the past decades. 

“Switching the national currency from the rial to the toman is a measure which is meant to facilitate transactions by the public, to acknowledge what the people generally accept in their current trend of trade and to match the economics of the society with the realities,” he was quoted by IRNA as saying.     

One toman would be worth 10 rials and switching to the toman means that a zero would be removed from price figures.  This, Seif said, was a plan that had been on the agenda of Iran’s banking sector and it would not have any impacts on the country’s inflation rate. 

The Iranian currency was known as the toman until the 1930s, when the name was changed to the rial at a rate of 10 rials to a toman. Nevertheless, the Iranians continued to use the old terminology even after the change and the rial only remain in the official language. 

It is still not clear when new coins and bank notes will be made available after the go-ahead is giving for the currency switch. 

Mohammad-Reza Ranjbar Fallah, a Tehran-based economist and a university lecturer, was quoted by the media as saying that Iran needs to drop several zeros from its national currency instead of one. 

Also, MP Hassan Hosseini Shahroudi, who is a member of the presiding board of the Parliament’s Economic Commission, emphasized that the plan to switch to the toman would deliver a short-term shock to the currency market in Iran, adding that everything would be back to normal later on. 

Gholam-Reza Mesbahi Moqaddam, a member of Iran’s Expediency Council and a former MP, praised the policy, and said it would create a unity between the spoken and formal use of the national currency.   

Amir Nojoomi, the secretary of Iran’s High Council of Exchange Shops, was quoted by the domestic media as saying that switching to the toman will increase the value of Iran’s national currency against the US dollar 10 folds. “President Rouhani’s move is like what Turkey’s President Recept Tayyip Erdogan did,” Nojoomi said. “When he took office, he [Erdogan] ordered to strike six zeros from Turkey’s national currency.  Accordingly, the people had one lira in banks for every six million liras.”       

The official exchange rate of the US dollar in Iran - which is determined by the CBI - is 32,150 rials and its unofficial rate - the street rate - is above 37,000 rials.  

  •  
  •  
  •  
  •  
  •  
  •  
  •  
 
 
 
 
 
  • Upvote 1
Link to comment
Share on other sites

 
CBI’s governor stopped short of calling the measure a revaluation proper. (Graphic Design: Vahid Sabet)
CBI’s governor stopped short of calling the measure a revaluation proper. (Graphic Design: Vahid Sabet)
  1. Economy
  2. Business And Markets
Thursday, December 08, 2016

Gov’t OKs “Toman” as Iran's Currency Unit

 
Valiollah Seif however took to the instant messaging telegram app later in the day, announcing that the plan should not be considered as currency revaluation proper, “It is set to help ease money transactions for the public.”

 

sepehr%20arefmanesh%201.jpg?itok=1Er-WvJ
Finance Desk

The government has approved changing Iran’s monetary unit from rial to toman, which will lop off one zero from the current national currency rial.

The decision was made when ratifying the Central Bank of Iran's bill during the Cabinet meeting on Wednesday, which was presided by President Hassan Rouhani, the government’s news website Dolat.ir reported.

While rial has been used as Iran's monetary unit in official documents and budget statements, toman was being used more commonly in daily transactions by citizens. The government will send the bill to the parliament for final approval.  

Prices of goods are mostly marked in rials, 10 of which equal one toman.

The government and Central Bank of Iran aim to ease financial operations as the duality of monetary units has been causing confusion among people. The move would also reduce the cost of money printing and maintenance.

Toman has been used as Iran’s currency for a long time. Between 1798 and 1825, the toman was subdivided into 8 rials, each worth 1,250 dinars, according to Wikipedia.

In 1825, the qiran was introduced, worth 1,000 dinars or one-tenth of a toman. In 1932, the rial replaced the toman.

Plans for changing the national currency unit was first considered by the previous administration. The Central Bank of Iran even asked the public to suggest names for a new currency unit during the previous administration.

Advantages

The plan will result in dropping a zero from the national currency, whereas there has been much talk about removing three or four zeros from the rial in the past few months.

Revaluation of the national currency could help boost its efficiency and ease daily transactions, according to experts.

Last month, Economy Minister Ali Tayyebnia said the time was not ripe for revaluating the national currency, as it requires more stability in the economy. However, he favored the idea in general, saying that it was necessary.

In the absence of any perceptible sign of government intention in this regard, the sudden announcement on Wednesday came as a surprise.

However, the implementation of the plan could prove a costly and time-consuming one, if the government decides to replace the current banknotes with new ones.

Experts have pointed out that the government is better off removing three or four zeros from the national currency, considering the probable cost of a revaluation plan in future.

Pouya Jebel Ameli, an analyst with CBI, thinks that the issue should have been reviewed more closely, before the Cabinet passed it.

“Stability in the rate of inflation is a prerequisite for implementing currency reforms,” he said.

“New banknotes must be printed, if the parliament approves the plan,” he added, stressing that more zeros need to be dropped.

Valiollah Seif however took to the instant messaging telegram app later in the day, announcing that the plan should not be considered as currency revaluation proper, “It is set to help ease money transactions for the public.”

“Currency revaluation has been fully studied by the Monetary and Banking Institute,” he said, “We have identified all the prerequisites needed for implementing reforms in the national currency, stable single-digit  inflation being one of them.”

Asset Management

Toman was not the only issue discussed by the Cabinet on Wednesday. It also allowed CBI to import and export gold tax-free and without the government's permission.

The proposal, also included in the Central Bank Bill, aims to help CBI manage its assets.

The bill has been crafted to upgrade and modernize banking regulations. Improving the independence of CBI, enhancing monetary policymaking and CBI’s supervision over the money market are among its key goals.

The Central Bank Bill is set to improve the regulator's independence in various aspects. The bill is expected to be delivered to the parliament along with the Banking Reform Bill that aims for a comprehensive reform in the banking sector by making it more compatible with international standards and Islamic finance principles.

  • Upvote 2
Link to comment
Share on other sites

8 minutes ago, millionaire in training said:
 
CBI’s governor stopped short of calling the measure a revaluation proper. (Graphic Design: Vahid Sabet)
CBI’s governor stopped short of calling the measure a revaluation proper. (Graphic Design: Vahid Sabet)
  1. Economy
  2. Business And Markets
Thursday, December 08, 2016

Gov’t OKs “Toman” as Iran's Currency Unit

 
Valiollah Seif however took to the instant messaging telegram app later in the day, announcing that the plan should not be considered as currency revaluation proper, “It is set to help ease money transactions for the public.”

 

sepehr%20arefmanesh%201.jpg?itok=1Er-WvJ
Finance Desk

 

Advantages

The plan will result in dropping a zero from the national currency, whereas there has been much talk about removing three or four zeros from the rial in the past few months.

 

However, the implementation of the plan could prove a costly and time-consuming one, if the government decides to replace the current banknotes with new ones.

Experts have pointed out that the government is better off removing three or four zeros from the national currency, considering the probable cost of a revaluation plan in future

 

“New banknotes must be printed, if the parliament approves the plan,” he added, stressing that more zeros need to be dropped

So this was my concern.    Now we wait and see.

Edited by millionaire in training
  • Upvote 3
Link to comment
Share on other sites

1 hour ago, tigergorzow said:

MIT Thanks,  SB Thanks,  I hope Iraq does not allow Iran to beat them to the RV / RI punch.  Of course it may happen simultaneously for both countries but I do believe it will happen in the very near term IMHO.  Keeping the faith!!

 

GO RV!!

Same for me tiger. I know an Iranian person in town here and he said he will call once he knows what the latest developments are. He seems more confused than we are  :shrug:

And he lived there !! He said he will chat with family and friends and get back to me. Realize that quick in the Middle East can sometimes mean a week !! :)

cheers pp

  • Upvote 3
Link to comment
Share on other sites

pokerplayer  yes I started the thread yes , but it's not mine it's ours ! I'm watching and waiting & things are looking up for making a good profit even if they do lop 1 Zero off there currency in this change up!

Looking forward to the end of these currency rides , so I can move on to other things , but God's timing is always perfect , so I'm still patiently awaiting for the Reaping of this harvest when it comes. Amen!

  • Upvote 7
Link to comment
Share on other sites

Iran is gearing to switch its national currency back to the toman – a move that would end the rein of the rial after around 90 years and also could boost the value of the country’s national currency against the US dollar. 

The administration of President Hassan Rouhani in a cabinet meeting on Wednesday approved the switch, as reported by the domestic media.  The plan still needs to be approved by the Parliament and later the Guardian Council that checks the laws against the Constitution and the Sharia law of Islam. Nevertheless, speculations over the impacts of the move are already emerging.

Valiollah Seif, the governor of the Central Bank of Iran (CBI) who reportedly proposed the switch, was quoted by the media as saying that the move is meant to facilitate the transactions by the public.  Seif emphasized that the rial had been literally removed from transactions in Iran for long in what he said was a result of rising inflation over the past decades. 

“Switching the national currency from the rial to the toman is a measure which is meant to facilitate transactions by the public, to acknowledge what the people generally accept in their current trend of trade and to match the economics of the society with the realities,” he was quoted by IRNA as saying.     

One toman would be worth 10 rials and switching to the toman means that a zero would be removed from price figures.  This, Seif said, was a plan that had been on the agenda of Iran’s banking sector and it would not have any impacts on the country’s inflation rate. 

The Iranian currency was known as the toman until the 1930s, when the name was changed to the rial at a rate of 10 rials to a toman. Nevertheless, the Iranians continued to use the old terminology even after the change and the rial only remain in the official language. 

It is still not clear when new coins and bank notes will be made available after the go-ahead is giving for the currency switch. 

Mohammad-Reza Ranjbar Fallah, a Tehran-based economist and a university lecturer, was quoted by the media as saying that Iran needs to drop several zeros from its national currency instead of one. 

Also, MP Hassan Hosseini Shahroudi, who is a member of the presiding board of the Parliament’s Economic Commission, emphasized that the plan to switch to the toman would deliver a short-term shock to the currency market in Iran, adding that everything would be back to normal later on. 

Gholam-Reza Mesbahi Moqaddam, a member of Iran’s Expediency Council and a former MP, praised the policy, and said it would create a unity between the spoken and formal use of the national currency.   

Amir Nojoomi, the secretary of Iran’s High Council of Exchange Shops, was quoted by the domestic media as saying that switching to the toman will increase the value of Iran’s national currency against the US dollar 10 folds. “President Rouhani’s move is like what Turkey’s President Recept Tayyip Erdogan did,” Nojoomi said. “When he took office, he [Erdogan] ordered to strike six zeros from Turkey’s national currency.  Accordingly, the people had one lira in banks for every six million liras.”       

The official exchange rate of the US dollar in Iran - which is determined by the CBI - is 32,150 rials and its unofficial rate - the street rate - is above 37,000 rials.  

  • Upvote 1
Link to comment
Share on other sites

Recap

 

so iran holds a survey the public agree to the name Parsi, over 61% agree to four zeros, they want a 1 year changeover with both currencies running side by side....hmmm. And so far they release an article saying the name toman, and one zero? We know former Presdient has said four zeros has been approved,  So I think we as I said above need this law to go to the majlis for debate and vote, and we need more information and we need it to be international...we need to wait and see what comes out from the Cbi, and what's posted on the Cbi site. Maybe someone who is good as translating articles can monitor the Cbi site in Iran for updates...

  • Upvote 2
Link to comment
Share on other sites

19 minutes ago, chinadawg said:

but even if there is a profit of some sort to be made, want we in the USA have a problem exchanging in the usa ? didn't Obommer put up some sort of restictions against american citizens obtaining rial and exchanging it 

Link to comment
Share on other sites

21 minutes ago, chinadawg said:

but even if there is a profit of some sort to be made, want we in the USA have a problem exchanging in the usa ? didn't Obommer put up some sort of restictions against american citizens obtaining rial and exchanging it ?

As I understand from reading in the US Government website if you are a US citizen and are exchanging the Rial you cannot exchange it straight across for US dollars. You have to exchange it with another country's currency. You cannot directly exchange with u.s. dollars you have to go around it

  • Upvote 1
Link to comment
Share on other sites

1 hour ago, gregp said:
1 hour ago, chinadawg said:

but even if there is a profit of some sort to be made, want we in the USA have a problem exchanging in the usa ? didn't Obommer put up some sort of restictions against american citizens obtaining rial and exchanging it 

Until we know the rate is we won't be able to say. Even if the US is not a viable option I will find out what is for you here in Canada.

pp

  • Upvote 4
Link to comment
Share on other sites

1 hour ago, gixxerfrog said:

Hey PP does ur friend know anything else/make any sense of what's going on?? oror is easy still lost

Hey Frog,

He is checking into with family back home but he is as confused as we are. I will post when he gets back to me but the Iranian gov't  it seems do not make clear statements as he says.

  Cheers, pp

Link to comment
Share on other sites

Iran Announces Plan To Make Toman Its Official Currency, Ditching Rial

Source: RFE/RL

Iranian President Hassan Rohani has announced that his administration will reintroduce the toman as the country's official currency, replacing the rial, upon approval by parliament, Iran's official IRNA news agency reported on December 7.


retirement-of-Iranian-rial-by-Shahrvand.jpg
Retirement of Rial
Source: Shahrvand daily
 

For most Iranians, the currency change won't make much of a difference, as most Iranians already calculate prices using the toman, which is equal to 10 rials.

The toman was used as the country's official currency until the 1930s, when it was replaced by the rial.

At current exchange rates, one U.S. dollar fetches around 3,200 toman. The toman is worth less at unofficial rates, where a dollar will buy you 3,900 toman.

replacing-rial-with-toman-by-noavaran.jpg
Iranian toman currency
Source: Noavaran daily
 

For tourists, the change could provide an advantage. Until now, the currency has caused confusion for travelers as the rial was the official currency used at banks and hotels, but locals referred to tomans to calculate prices.

Based on reporting by AP and dpa

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.