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Monday, April 11, 2011

Iran’s New Currencies: Rial and Dinar

The Director of Central Bank of Iran (CBI) Mahmoud Bahmani today confirmed reports that the rial, the country’s currency, will be redenominated soon by removing four zeros, with one new rial equaling one dollar (currently 10,000 rials equal one dollar). The new rial will also have a smaller unit that will be called dinar. Each rial would equal 100 dinars [IRNA, 11 April].

CBI asserts that the redenomination of rial would decrease the quantity of currency in circulation and would lessen the inflationary pressures. The critics believe without comprehensive economic and monetary policies, the move would increase the inflation.

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