Iran turns Rial to Toman as national currency
Iranian lawmakers adopted the details of amendment of the country's monetary and banking law and turned Rial currency to Toman.
According to the bill adopted in the Iranian parliament on Monday, each 10,000-Rial equals 1 Toman and 100 Parseh.
So, as per the newly ratified law, 10,000 rials will be equal to 1 toman and each toman will be equal to 100 Parseh.
The obligations that have already been created based on the Rial currency will only be possible with the Toman currency.
Currency exchange also will be carried out through Iran’s Central Bank (CBI) within the framework of the country’s ruling system of currency, observing reserves and, if necessary, the country’s obligations toward International Monetary Fund (IMF).
Accordingly, both rial and toman will be valid during the transition period. After that phase, all financial commitments based on the rial will be fulfilled in toman.
According to CBI, there are 8 billion pieces of banknotes circulating in the country and regularly impose high costs of printing new money on the government.
The idea of fewer zeros has been floated for almost 16 years. The initiative to change the currency was first proposed by the government in August.
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