TEHRAN, April 18 -- Iran plans to reform its currency rial by removing four zeros from the monetary unit, the Eghtesadonline news website reported Thursday.
The move has been proposed by Central Bank of Iran (CBI) as part of a broader plan to reform the monetary system.
The measure calls for fundamental changes to the national currency, including changing the name of the monetary unit from the official rial to the popularly used "toman."
Each toman will be equivalent to 10,000 rials if the proposal is passed to become the law by the parliament, said the report. It did not reveal when the vote will be held.
The goal, among other things, is to facilitate transactions, cut the cost of printing banknotes and coins, and enhance the efficiency of the monetary system, according to the report.
Galloping inflation and rapidly declining purchase power, ballooning volume of banknotes in circulation, fading facial value of the rial against other currencies, and hassles of using large digits in financial transactions are seen as other factors pushing for the reform.
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