Removal of Four Zeros from Iran’s National Currency Approved
In today’s open session of the Islamic Consultative Assembly (Majles), representatives reviewed and approved the bill amending the Monetary and Banking Law of the country regarding the removal of four zeros from the national currency. The bill was passed with 144 votes in favor, 108 votes against, and 3 abstentions out of 262 representatives present.
According to this resolution, the national currency unit “Rial” will be maintained, but four zeros will be removed from it, and the smaller unit of currency will be called “Qeran.” The simultaneous circulation of the new Rial and the current Rial, referred to as the transition period, is set for a maximum of three years.
The Central Bank is obliged to prepare the necessary arrangements for the implementation of the law within two years and to publicly announce the beginning of the transition period through the Official Gazette, electronic portals, and the Islamic Republic of Iran Broadcasting. Furthermore, the executive bylaw of this law must be prepared by the Central Bank within three months and, after approval by the High Board, be ratified by the Council of Ministers.
The text of the resolution states that the phrase “which equals 10,000 current Rials and is equivalent to 100 Qerans” shall be added to the end of paragraph (a) of Article 58 of the Central Bank Law. The parity of foreign currencies against the Rial and the rates of buying and selling foreign exchange by the Central Bank shall be calculated and determined within the framework of the prevailing exchange system and with due regard to the country’s foreign exchange reserves and legal obligations.
It is also stipulated that after the end of the transition period, obligations previously created on the basis of the current Rial unit shall only be fulfilled in the new Rial or its subdivisions, namely the Qeran. The method of withdrawal and the conditions for removing current Rial banknotes and coins from circulation shall also be determined and implemented in accordance with the provisions of the law.
