Page 32 - IRANRptMay21

Iran’s rial strengthens on Biden taking office
The paper of the new note does not reflect ultraviolet light, but invisible fluorescent fibres imprinted on it can be seen under ultraviolet light in four colours, the CBI said. Parts of the design and serial number are printed using fluorescent ink. In ultraviolet light, they are seen in green and golden yellow. The new Iran Cheque uses the figure “100” as part of the CBI’s push to gradually displace the rial in favour of the “toman” (presently an informal currency which enables Iranians to knock proliferating zeros off transactions). When given the green light, the central bank will re-denominate the rial, removing four zeros from it in official usage.
Notes for small sums are gradually being pulled out of circulation by the CBI, while the government and central bank continue to urge people to pay for shopping using the cashless options provided by the internal payment card system of Iran.
Separately, Iran’s currency strengthened to a five-month high against the dollar on January 20 on market hopes that new US President Joe Biden would be able to reach an agreement with Tehran to revive the 2015 nuclear deal, a development that would lead to the removal of heavy US sanctions imposed by his predecessor Donald Trump on the Islamic Republic. Iran has suffered three years of recession in the face of what it describes as Trump’s “economic war”.
The value of the dollar on Iran’s unregulated, open market was down to Iranian rial (IRR) 229,500 by the end of trading in Tehran on January 20, with the Iranian currency taking its gain against the USD since January 6 to 17%, according to currency trading website Bonbast.com.
The rial has lost more than 70% of its value since May 2018, when Trump abandoned the nuclear accord and introduced a sanctions regime against Iran unprecedented in its scope and economic impact. During the course of the four-year Trump presidency, the rial lost 80% against the greenback.
“cheque”, but it is typically used as regular cash by Iranians.
32 IRAN Country Report May 2021 www.intellinews.com