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November 17, 2019

Government of Iran approved the transition to new currency

Iranian toman exchange rateThe government of Iran approved the transition to a new currency – Iranian toman, released the government secretary Mohsen Haji Mirzaei. The aim of replacement the current rial to toman is to simplify payments. The Iranian toman will be equal to 10 rials and so prices will be reduced and simplified.

The issue of transition has been studied by a government’s economic commission over the last six months. The reform project was presented to the Iranian central bank in November 2016.

Iranian toman is a currency that was in circulation in Persia (Iran’s old name) until 1932, when it was replaced by the rial. Now the opposite happens. To date, it was considered as unofficial currency in Iran. The Central Bank denominations also the prices in the shops, where still appears rial, but the Iranians in daily speech almost always use the word toman.

The inflation in recent years had greatly depreciated the rial. Currently one dollar is exchanged for 39,000 rials, and after the change one dollar will cost 3,900 tomans.

In fact, with the change, Iran carries out a one-character denomination, despite the earlier suggestions that it would cover three or four zeros.

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