Iran Plans to Slash Four Zeros From Currency, Donya Reports

Iran plans to slash four and not three zeros from the national currency, the rial, Donya-e- Eqtesad reported, citing Central Bank Governor Mahmoud Bahmani.

The bank will present its proposal to the government in six months, the Tehran-based newspaper said. If the cabinet and Monetary and Credit Council approve the plan, the bank will start withdrawing notes and printing new ones, Donya reported.

Iran’s Economic Affairs and Finance Minister Shamseddin Hosseini said on April 2 that the government plans to remove three zeros from the national currency this year.

The plan to redenominate the currency was requested by the government in 2007 and delayed because of the need to ensure price stability first, Hosseini said.

One dollar exchanges for about 10,400 rials. Iran’s inflation accelerated to 12.4 percent in the 12 months through the Iranian month of Esfand, which ended on March 20th, from 11.6 percent the previous month.

To contact the reporter on this story: Ladane Nasseri in Tehran at lnasseri@bloomberg.net.

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net