Iran mulling currency system change

Central Bank of Iran says rising inflation in recent years has intensified the need for a change in the nation’s currency system.

“The current bank notes do not correspond to the living costs any longer, so people have to carry around a lot of cash,” Tahmasb Mazaheri told reporters following a cabinet meeting in Tehran on Sunday.

Mazaheri said the government could combat the problem by either printing new bank notes and coins or adopting a new currency instead of the Rial.

Slashing a few zeros off the currency and redefining the Rial could also provide a solution, according to the CBI governor.

Iran’s inflation currently stands at 26.1 percent – the highest in recent years while the most valuable banknotes in the country are 50,000 Rial bills, worth around $5.3.

This situation makes it difficult for people, as they have to take stacks of money with them when they shop.

Work on the country’s ‘monetary reform’, which will include a final decision about the currency system, is expected to end in three months.

MJ/RA