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Central bank: Iranian riyal recovered by 40%

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This is the history of the currency in Iran .. Why Tehran will delete the zeros from its banknotes?

8/16/2019

Iranian people still call their currency Toman in their purchasing (Al Jazeera)

 

Mohammad Rehmanpour-Tehran

 

For decades, governments of many countries have benefited from the benefits of deleting zeros from their local currencies, to facilitate their use among people, reduce printing costs, control inflation and strengthen the position of the local currency among countries.
After rounds of negotiations over the years, the Iranian government approved a proposal by the central bank in January this year to remove the four zeros from the local currency, and the proposal was submitted to the Iranian parliament for approval.

 

Since the reign of the Achaemenids to date, more than 50 different currency types have been used in Iran, such as the Achaemenid Drake, the Dirham, the Sassanian dinar, the Shah, the Abbasid Safavid, the Toman, and the Qajar Koran to the current rial and dinar.

 

According to the first article of the banking monetary law adopted since 1972 in Iran, the official currency of the country is the Iranian rial, which was replaced by the Toman in the Pahlavi state in 1929 and continued to this day, where one riyal consists of one hundred dinars.

 

Although the name of the currency has changed to the riyal, the Iranian people still call their currency "Toman" in their purchasing business. The use of the riyal name is limited to banks and official institutions in Iran.

 

But according to the central bank's plan, the toman would become the official currency of Iran as an alternative to the rial. Four zeros will be deleted from the official currency.

 

The exchange rate of one dollar reached 70 riyals at the beginning of the revolution (1979) to 120 thousand riyals now (Al-Jazeera)

 

Toman Original currency


The Toman will become the original currency of Iran, while the riyal remains the sub-currency, each 100 riyals constitute one toman.

For its part, the Central Bank announced the start of the process of collecting used money and exchange of new money within 24 months after the approval of Parliament.

 

"The value of the Iranian national currency has fallen by 3,500 times since 1971, and the exchange rate of the Iranian riyal against foreign currencies (the dollar) is 0.000008. In dollars. "

 

He added that there are currently seven billion banknotes in the country, but the number will fall to three billion after the exchange of the riyal Altoman. This will facilitate trade and exchange between people and reduce the cost of printing money.

 

 Divergent views

Opinions on the new plan were divided between loyal and opposition until the issue became controversial in Iran.

In their view, it is more feasible at this stage for the government to focus on reforming the country's economic system and reducing inflation, which has reached 40%, while the economic growth rate is 5%.

 

Similar experiences in other countries show that monetary change only achieves its objectives and desired results when economic stability is achieved. .

 

On the other hand, supporters believe that the most important features of the plan is to give the currency its real value.

The plan is characterized by reducing the size of banknotes and facilitate transactions and reduce the storage and maintenance space and save the banknotes better, and facilitate the process of carrying and transport, and reduce the psychological effects of inflation, and raise the currency between countries, and save time for people and banks at the same time, according to supporters .

 

Ten thousand riyals will become one Tomana after the deletion of zeros (the island)

 

 Inflation and other things


says Ali religious Turkmen professor Tehran University and faculty member at Institute Studies and Research business in his speech to island "took this decision result continuous inflation years now which contributed zooms numbers."

 

He pointed out that the basic elements of currency stability and control of inflation are not achieved when changing the currency and deleting zeros, Turkey has a similar experience in the deletion of six zeros from its currency in 2005, but the plan would not have benefited the Turkish economy without Turkey's involvement in the European market and attract head Foreign money and the correct management of the economy.

 

He also said that this plan will not affect the purchasing power or people's property, and that the deletion of zeros will include money and goods at the same time, for example, the price of bread will become Tomanin instead of 20,000 riyals.

 

Similarly, for foreign trade or foreign exchange transactions, prices will remain the same, and the purchasing power of foreign currencies will remain unchanged with the new toman, he said.

 

In this sense, changing the currency and deleting its zeros is a double-edged sword for the Iranian economy. The success of the plan depends on the government's parallel economic reforms, to safely pass the thorny economic entitlement, otherwise it will sink into inflation again if it continues to deal with the old system and the same mentality four decades ago, observers say.

 

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16731.jpg
The Iranian government approved in early August the deletion of four zeros from the rial and the adoption of "Altoman" alternative currency.
  

 Arabic and International


Economy News - Baghdad

TEHRAN (Reuters) - Iranian President Hassan Rouhani on Wednesday sent a bill to parliament to remove four zeros from the currency of a country suffering from the effects of tough financial sanctions.

The "Associated Press" quoted semi-official news agencies that Rouhani will send the bill to parliament for consideration in a hurry.

The Iranian rial has faltered because of the effects of heavy US sanctions on the country since President Donald Trump's decision to withdraw from the nuclear deal more than a year ago.

The value of one dollar in the trading markets today 116500 riyals.

At the time of the signing of the nuclear agreement in 2015, the value of the dollar was 32 thousand riyals, but the recent US sanctions made it deteriorate significantly.

The Iranian government approved in early August the deletion of four zeros from the rial, and the adoption of "Altoman" alternative currency.

Government officials said the move would make the Iranian currency "more effective", they said.


Views: 40   Date Added: 21/08/2019

 
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Iran moves to strike 4 zeroes from its battered currency
The Associated Press - By By AMIR VAHDAT and JON GAMBRELL - Associated Press
1 hour ago
 
 
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    FILE - In this April 4, 2015 file photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. Iran's president has sent a bill to parliament that would cut four zeroes from value of the nation's sanctions-battered currency, the rial. Semi-official news agencies reported the news on Wednesday, Aug. 21, 2019, saying President Hassan Rouhani sent the bill with urgency to the parliament to consider. Iran's rial has been hammered by the effects of increasing U.S. sanctions on the country. (AP Photo/Vahid Salemi, File)
    1 of 2
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    Pedestrians walk on a sidewalk in eastern Tehran, Iran, Monday, Aug. 19, 2019. (AP Photo/Vahid Salemi)
    2 of 2
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    FILE - In this April 4, 2015 file photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. Iran's president has sent a bill to parliament that would cut four zeroes from value of the nation's sanctions-battered currency, the rial. Semi-official news agencies reported the news on Wednesday, Aug. 21, 2019, saying President Hassan Rouhani sent the bill with urgency to the parliament to consider. Iran's rial has been hammered by the effects of increasing U.S. sanctions on the country. (AP Photo/Vahid Salemi, File)
    1 of 2
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    Pedestrians walk on a sidewalk in eastern Tehran, Iran, Monday, Aug. 19, 2019. (AP Photo/Vahid Salemi)
    2 of 2
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    FILE - In this April 4, 2015 file photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. Iran's president has sent a bill to parliament that would cut four zeroes from value of the nation's sanctions-battered currency, the rial. Semi-official news agencies reported the news on Wednesday, Aug. 21, 2019, saying President Hassan Rouhani sent the bill with urgency to the parliament to consider. Iran's rial has been hammered by the effects of increasing U.S. sanctions on the country. (AP Photo/Vahid Salemi, File)
    1 of 2
  • ?app=portal&sig=51bb5d0af651d7aec4a10085
    Pedestrians walk on a sidewalk in eastern Tehran, Iran, Monday, Aug. 19, 2019. (AP Photo/Vahid Salemi)

    TEHRAN, Iran (AP) — Iran's president sent a bill to parliament Wednesday that would cut four zeroes from the value of the Islamic Republic's sanctions-battered currency, the rial, as tensions remain high between Tehran and Washington.

    By sending the bill to lawmakers, President Hassan Rouhani's government shows it is serious about an idea mulled for some time in Iran, where people discuss monetary transactions in both rials and —informally but more commonly — in tomans. A toman is worth 10 rials.

    If passed by parliament and approved by lawmakers, Iran's Central Bank would in effect devalue the rial and rename it as toman.

    The bank would have two years to create the new toman currency, returning a currency name that has not been officially used since the 1930s.

    Authorities have given no estimate for the cost of creating the new currency.

    Also, it was unlikely the parliament would take up Rouhani's request anytime soon. The request carried a low-urgency level, meaning parliament has up to two years, or until 2021, to deliberate and possibly approve the bill.

    However, Iranians are to hold new parliamentary elections in March 2020, making it likely that the bill would be decided on by the next house and Rouhani may not see the new currency before the end of his presidency in 2021.

    Nasim Souran, a Tehran-based financial journalist told The Associated Press the proposal was part of Rouhani's policies to help the nation deal with increasing prices.

    Iran's rial has been battered by escalating U.S. sanctions on the country since President Donald Trump's decision to pull out of Tehran's nuclear deal with world powers over a year ago.

    On Wednesday, the rial traded 116,500 to $1. At the time of the 2015 nuclear deal, the rial traded 32,000 to the dollar.

    Iran's economy was long hobbled by years of sanctions over its nuclear program, sparked by Western fears that Tehran could use it to build a nuclear weapon. Iran has consistently denied having any ambitions to build atomic bombs. Other sanctions stem back to Iran's 1979 Islamic Revolution and the takeover of the U.S. Embassy in Tehran, while the country also faced economic trouble amid and after its devastating 1980s war with Iraq.

    As uncertainty over the Iran nuclear deal grew after Trump entered the White House, Iran's already anemic economy nosedived. The country's monthly inflation rate is at 40.4% and the national unemployment rate is some 12%. Among youth, it is even worse, with around 25% out of a job.

    In 2018, money-exchange shops shut down for five months under a government order as it tried to control the rapid rial depreciation. It tried to enforce a government-imposed rate of 42,000 to $1 during that time.

    ___

    Gambrell reported from Dubai, United Arab Emirates.

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1 minute ago, Laid Back said:

I see an RD or LOP coming for the Iranian rial.

 

:twothumbs: I Agree, Laid Back, AND The Very Best Of The Rest Of Your Week AND Up Coming Weekend To You!!! :tiphat:

 

ALSO, THEE Insanian Rial is NOT on International Exchanges SO NEITHER will be THEE Insanian Toman in THEE "foreseeable" "future"!!!

 

Go Moola Nova!

:pirateship:

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20 minutes ago, Synopsis said:

 

:twothumbs: I Agree, Laid Back, AND The Very Best Of The Rest Of Your Week AND Up Coming Weekend To You!!! :tiphat:

 

ALSO, THEE Insanian Rial is NOT on International Exchanges SO NEITHER will be THEE Insanian Toman in THEE "foreseeable" "future"!!!

 

Go Moola Nova!

:pirateship:

Thanks for your input my friend Synopsis 👍🏼😊

I agree, the sanctions will continue for the new Toman.

happy week-end

 

Go Iraqi dinar

Go RV

 

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1 hour ago, Laid Back said:

I see an RD or LOP coming for the Iranian rial.

 

Get ready for the toung lashing.

lol

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49 minutes ago, Laid Back said:

Thanks for your input my friend Synopsis 👍🏼😊

I agree, the sanctions will continue for the new Toman.

happy week-end

 

Go Iraqi dinar

Go RV

 

 

1 hour ago, Synopsis said:

 

:twothumbs: I Agree, Laid Back, AND The Very Best Of The Rest Of Your Week AND Up Coming Weekend To You!!! :tiphat:

 

ALSO, THEE Insanian Rial is NOT on International Exchanges SO NEITHER will be THEE Insanian Toman in THEE "foreseeable" "future"!!!

 

Go Moola Nova!

:pirateship:

I can’t see how with International Swift Sanctions that the IMF and International Community would honor a new currency from a country who is actively trying to disrupt traffic through the Strait of Hormuz, like “Hey guys our worthless currency is now worth infinitely more!” Trust us, we’re good for it! Like every other word and bond we’ve broken over the last few decades”

 

Not gonna happen. 

 

Iraq on the other hand is working with the IMF and trying to jump through all the proper hoops and channels! Completely different story. 

 

I could be wrong, but I just don’t see it happening for Iran. I hope for those tha have purchased the rial that I’m wrong...

 

BTW I vaguely remember that if a country is going to change their currency they have to apply for a new ISO number I believe. Iran is changing their currency, Iraq has not applied for a new ISO.... it’s the same currency. A Dinar is a Dinar not a Rial to a Toman. Just food for thought

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LINK

Rouhani sends bill deleting 4 zeros from Iranian rial to Parliament

 

Rouhani sends bill deleting 4 zeros from Iranian rial to parliament

 

21st August, 2019

 


Iranian President Hassan Rouhani on Wednesday sent a bill to parliament to remove four zeros from the value of a nation's currency, which has been hit by severe financial sanctions, the Associated Press reported.

The Iranian rial has faltered because of the effects of heavy US sanctions on the country since President Donald Trump's decision to withdraw from the nuclear deal more than a year ago.

The value of one dollar in the trading markets today 116500 riyals.

At the time of the signing of the nuclear agreement in 2015, the value of the dollar was 32 thousand riyals, but the recent US sanctions made it deteriorate significantly.

The Iranian government approved in early August the deletion of four zeros from the rial, and the adoption of "Altoman" alternative currency.

Government officials said the move would make the Iranian currency "more effective", they said.

 

###############

 

LINK
 
Rouhani deletes 4 zeros from the Iranian rial

  
16731.jpg

 

21st August, 2019

 

Iranian President Hassan Rouhani sent a bill to parliament on Wednesday to remove four zeros from the value of a nation's currency, which has been hit by severe financial sanctions

The "Associated Press" quoted semi-official news agencies that Rouhani will send the bill to parliament for consideration in a hurry

The Iranian rial has faltered because of the effects of heavy US sanctions on the country since President Donald Trump's decision to withdraw from the nuclear deal more than a year ago

The value of one dollar in the trading markets today 116500 riyals

At the time of the signing of the nuclear agreement in 2015, the value of the dollar was 32 thousand riyals, but the recent US sanctions made it deteriorate significantly

The Iranian government approved in early August the deletion of four zeros from the rial, and the adoption of "Altoman" alternative currency

 

#################

 

LINK

The bill "Reforming the country's Monetary and Banking Law" was sent to parliament


ÙاÛح٠«اصÙاح ÙاÙÙÙ Ù¾ÙÙÛ Ù Ø¨Ø§ÙÚ©Û Ú©Ø´Ùر» ب٠ÙجÙس ارسا٠شد

 

The bill "Reforming the country's Monetary and Banking Law" was sent to parliament to remove four zeros of the national currency and change the national currency.

Implementation of a monetary system reform plan in the form of the elimination of four zeros of the national currency and a review of banknotes and coins will increase the role of the instrument in the country's payment systems, according to Mehr News Agency . In this regard, Hassan Rouhani sent the legislative reform bill to the parliament, which was approved by the central bank at a meeting of the cabinet on August 6, at the recommendation of the central bank.

According to the bill, the Iranian currency is changed to USD and each USD is equal to 4 rials current and is equal to one hundred rupees.

The Central Bank of the Islamic Republic of Iran shall calculate and determine the equity of the foreign currency to the Tuman and the foreign exchange rate in the framework of the prevailing foreign exchange system and with due regard to the country's foreign exchange reserves and obligations to the International Monetary Fund.

The period of parallel circulation and the simultaneous validity of "Toman" and "Rial" referred to in this Law as the "Transferor" shall be a maximum of two years.  The procedure for collecting and withdrawing banknotes and coins shall be determined or enforced in accordance with the country's monetary and banking law, as the case may be.

Upon expiry of the period, obligations previously established in Rials currency can only be fulfilled in USD.
 
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25 minutes ago, Rugbylaird19 said:

Delete zeros from Iranian currency--LOP.

Delete zeros from the Iraqi currency--RV

HELP!!! Is this Arablish or what????

 

Iran Has Massive Inflation And Iraq Doesn’t - They’re On Two Separate Completely Unrelated Paths ! ;) 

 

:D  :D  :D 

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50 minutes ago, Rugbylaird19 said:

Delete zeros from Iranian currency--LOP.

Delete zeros from the Iraqi currency--RV

HELP!!! Is this Arablish or what????

 

I think it’s propaganda and BS. They trying to trick an mess with Trump. Maybe smoke and mirrors or just trying to confuse the folks at DV...

Sorry yota, couldn’t help it. 

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1 hour ago, Rugbylaird19 said:

Delete zeros from Iranian currency--LOP.

Delete zeros from the Iraqi currency--RV

HELP!!! Is this Arablish or what????

I just sit here n watch, haha. Iam waiting on these people how they will come up with the numbers..

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51 minutes ago, DinarThug said:

 

Iran Has Massive Inflation And Iraq Doesn’t - They’re On Two Separate Completely Unrelated Paths ! ;) 

 

:D  :D  :D 

Bro, U dont highlight the meat....According to the bill, the Iranian currency is changed to USD and each USD is equal to 4 rials current and is equal to one hundred rupees.

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4 minutes ago, navira said:

I just sit here n watch, haha. Iam waiting on these people how they will come up with the numbers..

It shocks me to see how so many dinar holders reject any chance of Iran doing anything with their currency besides the dreaded lop. They use the same argument about Iran that people have used to dissuade others from buying dinar, ie lopsters.

Again, the rial is such a cheap gamble, why anyone wouldn't put down a few bucks to see how it goes, is beyond me. If they lop, I'm out $100. Boohoo

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Just now, miquel said:

It shocks me to see how so many dinar holders reject any chance of Iran doing anything with their currency besides the dreaded lop. They use the same argument about Iran that people have used to dissuade others from buying dinar, ie lopsters.

Again, the rial is such a cheap gamble, why anyone wouldn't put down a few bucks to see how it goes, is beyond me. If they lop, I'm out $100. 

Yup, lol

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16 minutes ago, navira said:

Bro, U dont highlight the meat....According to the bill, the Iranian currency is changed to USD and each USD is equal to 4 rials current and is equal to one hundred rupees.

Right now 1 rupee =590IRR. 1usd=71INR

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the purchase of Iranian currency or goods remains illegal, and that also means exchanging, good luck

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1 minute ago, newbieDA said:

the purchase of Iranian currency or goods remains illegal, and that also means exchanging, good luck

I have God, current news, a passport, and faith, unlike you.

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I looked into buying Iran currency, however under the sanctions in place it is illegal to buy or sell Iran currency currently. If you need more proof go look up the sanctions or go to a reputable exchange dealer and they will also explain this. Even though the odds are low that feds will come after you I personally will not take the risk of even buying it online from a private seller no matter what website it’s on. Money is never worth jail time to me. Furthermore until the sanctions are lifted this currency will be completely worthless no matter what Iran says they are raising the value to. So even IF it did do something you still cannot legally sell it back for a profit to maybe in this case buy more Iraq dinar. If you don’t believe me go read the sanctions once again. It’s not an opinion it’s facts. I do agree however that if it is this low if the sanctions are ever lifted that I would at that point buy some based on the same premise and reasons I bought Iraq dinar. I just do not see Iran coming out from under these sanctions any time soon. 

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2 minutes ago, southbeach said:

I have God, current news, a passport, and faith, unlike you.

 

like I said good luck, should be interesting (also drop your attitude with me for stating a fact)

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1 hour ago, navira said:

Bro, U dont highlight the meat....According to the bill, the Iranian currency is changed to USD and each USD is equal to 4 rials current and is equal to one hundred     rupees.

 

Wtf Does Rupee Goldberg Have To Do With Any Of This ? :blink:

 

 

 

I May Have To Have Cuhhh Try And Explain It ...

 

whoopi goldberg race GIF

 

:D  :D  :D 

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