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trading down at IRR54,665, while the euro was also down, at IRR46,266. The US dollars remained locked in at IRR42,000 with no sign that the central bank intended to move it out of its imprisonment. Iran has removed all dollar transactions from official processes and dealings.
Redenomination bill sent to Iranian parliament, new details revealed
Iran’s redenomination bill was sent to the Iranian​ ​parliament by the cabinet​ ​on August 21 for debate among MPs, according to ICANA.
Iran is set to remove four zeros from its currency, the Iranian rial (IRR) in the next two years, provided all relevant bodies, including the Guardian Council, government committees and parliament give their blessing. As part of the new currency, to be officially called the “toman”, a new sub-currency named the “parseh”, equal to 100 toman, will be legislatively introduced.
Officially called the “Reforming Monetary and Banking Law,” the bill stems from old ideas revived by Central Bank of Iran governor Abdolnasser Hemmati and approved by the cabinet a few weeks back. It is likely to face little resistance due to the general feeling of frustration felt by many in the face of the severely weakened rial. Currently, USD 1 is equal to IRR 117,000. The rial has lost around 60% of its free market value against the dollar since the US unilaterally withdrew from the multilateral nuclear deal in May last year, prior to which a dollar would only buy you IRR32,000.
The bill states that a two-year transition period would be needed to successfully move from the rial to the toman.
Colloquially in Iran, the toman, which has 10 times the value of the rial, is the de facto currency used in daily transactions. For instance, IRR10,000 is
30​ IRAN Country Report​ March 2020 www.intellinews.com