06.10.2025, 10:22
Russia's ally is going to hold a denomination
Source: OREANDA-NEWS
OREANDA-NEWS The Iranian authorities nevertheless decided to redenominate the national currency, discussions of which began back in the 1990s. This was reported by Kommersant with reference to local media.
The relevant bill was approved by the Parliament of the Islamic Republic. It is assumed that four zeros will be removed from the banknotes — the new rial will be equal to 10,000 old rials. For comparison, in Russia, to which Iran has become a close ally in recent years, three zeros were written off in 1998.
The Central Bank has been given four years to prepare the reform, after which both new and old banknotes can be used simultaneously for three years. The document has yet to be approved by the Council of Guardians of the Constitution. At this stage, draft laws are checked for compliance with the basic law of the country.
Since the beginning of the century, the Iranian rial has been constantly getting cheaper against the background of the sanctions policy of Western countries, primarily the United States, which is associated with the development of Tehran's nuclear program. So, in 2002, when Washington first accused the country of trying to create nuclear weapons, the exchange rate of the national currency fell from 1.7 thousand rials per dollar to almost 8 thousand.
In 2012, the dollar was already worth 12 thousand rials, and in 2018 - 128 thousand. By now, one dollar will cost 1.15 million rials, and the acceleration of inflation, which is already approaching 50 percent, does not allow us to hope for a slowdown in the process.
Nevertheless, the authorities expect that the denomination will not only make calculations more convenient, but also reduce the inflation expectations of citizens. However, it is noted in the article that other countries of the world, which had to write off zeros from banknotes, could not achieve such an effect.
Earlier, Russian President Vladimir Putin did not rule out that the country would be able to sell up to 55 billion cubic meters of gas per year to Iran, although the Islamic Republic itself has some of the most significant reserves of this type of fuel in the world. However, the parties have not yet agreed on prices.
The relevant bill was approved by the Parliament of the Islamic Republic. It is assumed that four zeros will be removed from the banknotes — the new rial will be equal to 10,000 old rials. For comparison, in Russia, to which Iran has become a close ally in recent years, three zeros were written off in 1998.
The Central Bank has been given four years to prepare the reform, after which both new and old banknotes can be used simultaneously for three years. The document has yet to be approved by the Council of Guardians of the Constitution. At this stage, draft laws are checked for compliance with the basic law of the country.
Since the beginning of the century, the Iranian rial has been constantly getting cheaper against the background of the sanctions policy of Western countries, primarily the United States, which is associated with the development of Tehran's nuclear program. So, in 2002, when Washington first accused the country of trying to create nuclear weapons, the exchange rate of the national currency fell from 1.7 thousand rials per dollar to almost 8 thousand.
In 2012, the dollar was already worth 12 thousand rials, and in 2018 - 128 thousand. By now, one dollar will cost 1.15 million rials, and the acceleration of inflation, which is already approaching 50 percent, does not allow us to hope for a slowdown in the process.
Nevertheless, the authorities expect that the denomination will not only make calculations more convenient, but also reduce the inflation expectations of citizens. However, it is noted in the article that other countries of the world, which had to write off zeros from banknotes, could not achieve such an effect.
Earlier, Russian President Vladimir Putin did not rule out that the country would be able to sell up to 55 billion cubic meters of gas per year to Iran, although the Islamic Republic itself has some of the most significant reserves of this type of fuel in the world. However, the parties have not yet agreed on prices.
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