Iran is soon going to introduce a new currency called “toman”. According to the new bill, 1 toman would be officially equal to 10,000 rials. The Government hopes to improve the country’s economy over a period of two years by introducing this new currency. Old and new currencies will circulate together to ensure a smooth transition.
The Government has been planning to introduce new currency for many years. The idea has been finally presented to the parliament in the form of a bill. It was drafted by the Central Bank of Iran (CBI) to minimise the cost and efforts required for printing and maintaining banknotes.
According to senior officials, 7 billion banknotes are in circulation, out of which almost 700 million are replaced annually. They believe that printing of new banknotes and will be a cost-effective move. Maintenance costs would also be reduced as approximately 3 billion banknotes will be in circulation. Cashless transactions are also being promoted to reduce costs. Apart from that, the new banknotes will have better security features to curb the rising issue of forgeries.
The metal value of Iranian coins has become higher than their face value due to inflation. By introducing the new currency the Central Bank hopes to improve the country’s financial condition. Most Iranians use the word toman instead of rial since the 1930s. Many people have already started equating 1 toman to 10,000 rials due to rising inflation. The lowest denomination in Iran currently is 50 rials.
Image Courtesy: Central Bank of Iran