Iran is moving towards historical change. The Parliament of Iran has passed a bill that will make a big change in its currency. There is a preparation to remove four zeros from Iranian riyal. This directly means that the old riyal of 10,000 will now be considered equal to a new riyal. According to the report of Reuters, this bill has been agreed in Parliament.
Why Iran decided to remove four zero from its currency, The story behind it is quite long. Iran is going through inflation and the plight of the economy. Now the Iran government hopes that the currency change will lead to the economy. Actually Rial has been struggling since the 1979 Islamic revolution. It has become cheaper than paper. If someone needs an US dollar, he will have to pay 11,50,000 riyals. The Iran government wants to strengthen the currency by removing zero.
Millions of notes have to be counted for a bread
Inflation in Iran has reached above 35 percent for the last several years. It also reaches 40 and 50 percent. A 2022 report of the International Monetary Fund had explained in detail about Iran’s bad situation. Iran is very dependent on oil exports, but due to the ban of America, no one except China buys oil from it. For this reason, his situation is very bad. If someone in Iran has to buy a bread, then Irani riyal has to count millions.
What will be the change by removing zero
Iran’s official media IRNA According to the problems can be reduced to some extent after four zero are removed from Rial. The central bank will get two years for its preparation, while the change will be done for three years. During this time old and new notes will be replaced. After the removal of four zero, the old riyal of 10,000 will become a new riyal. This will ease the transaction. Please tell that in 2005, the Turki removed six zero from his currency.