Iran's Central Bank Proposes Reform Of Battered Currency

Iranian Central Bank Governor Abdolnaser Hemmati (file photo)

The Iranian Central Bank has proposed a currency reform that would remove four zeros from the rial, Iranian state media have reported.

"A bill to remove four zeros from the national currency was presented to the government by the Central Bank yesterday," Bank Governor Abdolnaser Hemmati was quoted as saying on January 6 by the IRNA news agency. "I hope this matter can be concluded as soon as possible."

Iran's rial lost more than 60 percent of its value in 2018, although it has recovered somewhat in recent weeks. Inflation in Iran was nearly 40 percent last year.

As of January 6, the rial was trading at about 110,000 to the U.S. dollar, according to foreign-exchange websites.

U.S. President Donald Trump has pledged to reimpose sanctions against Iran that were lifted as a result of the 2015 deal between Tehran and world powers aimed at curbing Iran's nuclear program.

Trump has said the deal was flawed and did not address Iran's ballistic-missile program or its support for organizations that the United States has labelled as terrorists.

If approved by the government, the Central Bank's initiative would have to be passed by parliament and vetted by the Guardians Council.

Based on reporting by Reuters