Page 31 - IRANRptAug20

Forex and gold prices skyrocket in Iran
Gold sovereigns followed suit. The Azadi coin hit IRR108mn on the street, while the Imami peaked at IRR115mn.
On the official Central Bank of Iran (CBI) exchange rate, all currencies remain fixed with the US dollar remaining at IRR42,000, the pound sterling IRR52,790 and the euro IRR47,997.
On the unofficial, or “free” market, the rial has lost nearly 48% of its value against the dollar in 2020, more than half of that in the past month.
Iran’s parliament has passed a bill that permits the government to redenominate the Iranian rial (IRR) with four less zeroes and rename the currency as the “toman,” IBENA reported on May 4.
The Monetary Reform and Banking Law bill stems from old ideas revived by Central Bank of Iran (CBI) governor​ ​Abdolnasser Hemmati​. T​ he drafted legislation faced little resistance due to a general feeling of frustration at soaring inflation and practical complications—such as the need to carry thick wads of banknotes and calculate large sums—caused by the severe weakening of the rial against hard currencies since the US reimposed heavy sanctions against Iran in May 2018. As well as introducing the “toman”, officials are to bring forward the “parseh”, equal to 100 toman.
Colloquially in Iran, the toman represents 10 times the value of the rial and is the de facto currency used in daily transactions. For instance, IRR10,000 is
Iran approves plan to remove four zeroes from ‘bloated’ rial and rename it toman
31​ IRAN Country Report August 2020 www.intellinews.com