Iran to scrap rial as parseh becomes small currency unit
The rial, the currency unit used consistently in Iran for almost a century, will be totally abandoned once the country introduces a redenomination.
Iran’s new unit of currency, smaller than the toman, will be named parseh, not rial, as previously reported in the media, based on the terms of a bill sent by the government to Parliament on Wednesday, Press TV reported.
“Iran’s unit of currency is the toman; each toman is equal to 10,000 current rials and equal to one hundred parsehs,” read the Article A of the Bill to Reform Iran’s Monetary and Banking Law, ratified by the cabinet on August 4, 2019.
The bill said the rial will continue to remain legal tender for a maximum of two years of a transition period, which will begin once the new currency is introduced to the market.
“After the transition period, all liabilities that have been accrued based on the currency unit of the rial will only be settled through the currency unit of the toman,” read a sub-article of the bill, a copy of which was circulating in the Iranian media on Wednesday.
Iran’s decision to slash four zeros off the rial comes less than a year after the national currency plunged in the face of a series of American sanctions.
The rial regained some of its footing last month after the government announced measures to narrow the gap between the price of the currency in the unregulated market and a system meant to collect foreign currencies earned from exports.
Analysts believe that redenomination of the currency in Iran will have a slight psychological impact on the markets as the government tries to improve macroeconomic indicators.
source: Iran Daily
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Gold loses some luster after Trump’s decisive win
Resolute Mining says it will pay Mali $160 million in tax dispute
Russia takes aim at US nuclear power by throttling uranium
Aluminum price to average 6% higher in 2024 on strong demand: Fitch
BHP to spend up to $14 billion on Chilean copper expansion
Trump chooses oil fracking boss as energy secretary
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Marimaca Copper eyes ASX dual listing to boost Chile project
Osisko Development surges on permitting milestone for Cariboo gold project
Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
Mexico’s proposed higher mining royalties could block nearly $7bn in investments
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project