1056) Islamic Republic of Iran: Currencies of the Middle-East (4): "Toman" will be the new currency in place of "Rial": Banknote and Coins to be circulated shortly:
Iran has announced on 31.07.2019 that it will remove four (4) digits from its monetary structure, as part of its programme to revise the Iranian economy and currency.
The name of the Iranian "Rial" will also be changed to "Toman", which was a traditional unit of currency in Iran.
About the Toman:
The Iranian Toman (derives from the Mongolian "Tomen", meaning "unit of ten thousand") is a superunit of the official currency of Iran - the "Rial". Although the Rial is the official currency of Iran, in everyday life, Iranians employ the monetary unit "Toman", which is presently equivalent to10 Rials.
Originally, the Toman consisted of 10,000 Dinars.
Between 1798 and 1825, the Toman was subdivided into 8 Rials (each of 1250 Dinar).
In 1825, the Qiran was introduced, which was worth 1000 Dinars or one-tenth of a Toman.
In 1932, the Rial replaced the Toman at an exchange rate of 1 Toman to 10 Deman (meaning - 1 Rial to 1 Qiran).
On 07.12.2016, the Iranian government approved a proposal to replace the country's Rial currency with the historically well known Toman, which is being implemented now.
The present denominations in circulation, which are being replaced are 1,000, 2,000, 5,000, 10,000, 50,000 and 100,000 Rial Banknotes.
The recent issues:
Iranians have long been re-calculating their currency for cash transactions as a measure to simplify paperwork and using the term "Toman", so as to, denote that the currency value was re-calculated.
This move follows governmental measures which saw the seizure and freezing of bank accounts of unauthorised or unlicensed currency dealers, which led to a run on banks/banking channels with long lines of depositors withdrawing or exchanging their Rials, which have been steadily losing their purchasing value. Fearing a crisis emerging, the Iranian authorities moved swiftly to arrest speculative accumulation/selling of Iranian currency.
The re-introduction of the Toman is more in line with common practices in Iranian society, as the Rial is not in much use.
Circulation coins have almost gone out of circulation. The largest denomination in circulation presently is the 100,000 Rial Banknote, which having lost its purchasing power, significant quantities of Banknotes have to be carried by users, so as to, enable them to carry out even the most straight-forward cash transactions. As a result, bank debit card transactions has become the usual practice, but use of this technology often does not extend to smaller market or street vendors.
In 2008, the Central Bank of Iran began issuing "Iran cheques", which are issued in the form of a "typical" Banknote in the denominations of 500,000 and 1,000,000 Rial denominations, which are for all practical purposes being used as Currency/Banknotes.
The present economic sanctions imposed by the USA to re-negotiate the Nuclear Missile Treaty so as to prevent Iran from production of Uranium Enrichment programmes that would enable it to develop nuclear-capable Inter-Continental Ballistic Missiles (ICBMs) have compounded matters further and contributed to the drop in value of the Iranian Rial.
The Central Bank of Iran will structure the Toman to be sub-divided into 100 Rials, from the present 10 Rials. There are plans afoot for introduction of circulation coins again, to circulate with the newly designed Banknotes.
Presently circulating 10,000, 20,000, 50,000 and 100,000 Rial denominations which will be replaced by the Toman
Links:
Links:
No comments:
Post a Comment