IRAN CONSIDERING CURRENCY REVALUATION

 

Iran launched plans to switch its currency to the toman in 2021, replacing the rial by removing four zeros in a bid to mask inflation. But the plan stalled. Now, the government is hoping to revive the effort.

A loaf of bread in Tehran costs 100,000 rials. Or — should it be 10 tomans now? Or 10,000 tomans (roughly $1)?

For ordinary Iranians, a single toman simply means 10 rials. But with the government attempting to streamline currency, even the basic act of buying groceries could soon become a confusing tangle of numbers.

Initially, removing zeros from the currency was aimed to simplify transactions and improve confidence in Iran's financial system.

Proponents argued it would also reduce the psychological impact of inflation. But inflation has not abated, and the public's confidence has continued to erode since 2021.

Since the reimposition of US sanctions in 2018, the rial's value has plummeted by more than 80% against the dollar.

This devaluation has fueled hyperinflation, with the cost of essential goods like food and medicine doubling in the past year alone. Many Iranians are struggling to meet basic needs as wages fail to keep pace with rising prices.

"Last month, I spent half my salary just on groceries," said Farshid, a Tehran shopkeeper. "It doesn't matter whether it's the rial or the toman — everything is too expensive."

To read the complete article, see:
Toman or rial: Can currency reform stop inflation in Iran? (https://www.dw.com/en/toman-or-rial-can-currency-reform-stop-inflation-in-iran/a-71470010)

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