Iran Is Giving A New Name To Its Currency
On Monday, the Chief of Iran’s Central Bank announced that they are going to rename as well as revalue their existing currency. The currency which has been known as Rial for a long time will be in all probability, called as Toman. Moreover, four zeros will be taken away from all its denominations. Earlier, what used to be 10000 rials, will now become Toman under the new plan. This was approved by the Parliament of Iran on Monday. ISNA, the semi-official news agency of the students in Iran came up with the report that the bill meant for removing four zeros from the national currency had been approved by lawmakers.
The Currency’s Value Will Become A Lot Less
No matter what the currency will be named, the speculation is that it will not worth too much. On 5th April, one required near about 42,050 rials to purchase one US dollar. Since the Islamic Revolution that managed to bring forth religious government to power in the year 1979, Iran has noticed a steady fall in its national currency's value. There has been an acceleration in that fall in recent times as strict US sanctions have battered the economy of this country. This holds a significant spot among the world latest news.
Four Significant Turning Points
Let us now see the four significant turning points that have played their role in the devaluation of Rial.
The first aspect, as already discussed, was the Islamic Revolution that had taken place back the year 1979. When the Western-allied Shah's government collapsed and it was taken over by an ideological group of mullahs. Now, when this happened, numerous businessmen and entrepreneurs had left the country for fear of getting persecuted, hence took their wealth along with them.
The second point was the end of the Iran-Iraq war in 1989. Iran took nearly eight years to rebuild its economy, which had been badly hit, with Rial almost losing 100% of its value in comparison to the US dollar.
The penultimate point happens to be the worst devaluation for Rial. This had come during the final years of President Mahmoud Ahmadinejad’s stint. He had left power in the year 2013 but before that, Iran had suffered from severe sanctions from the international community, wherein the Rial lost around 400% more than its value on the markets of global currency.
Finally, the last turning point which is still on, was when US President Donald Trump had taken America out of the nuclear deal. It came as a shock that managed to sizzle through each aspect of Iran's already adversely affected economy.
It has indeed turned out to be a major world news update that can have its repercussions on other currencies as well.
Government Also Played Its Role
The Iranian Government has also put in stringent rules and regulations linked with access to foreign currency, hence resulting in a thriving black market for other currencies' cash inside Iran. Thus it managed to erode the value of their currency further.
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The Currency’s Value Will Become A Lot Less
No matter what the currency will be named, the speculation is that it will not worth too much. On 5th April, one required near about 42,050 rials to purchase one US dollar. Since the Islamic Revolution that managed to bring forth religious government to power in the year 1979, Iran has noticed a steady fall in its national currency's value. There has been an acceleration in that fall in recent times as strict US sanctions have battered the economy of this country. This holds a significant spot among the world latest news.
Four Significant Turning Points
Let us now see the four significant turning points that have played their role in the devaluation of Rial.
The first aspect, as already discussed, was the Islamic Revolution that had taken place back the year 1979. When the Western-allied Shah's government collapsed and it was taken over by an ideological group of mullahs. Now, when this happened, numerous businessmen and entrepreneurs had left the country for fear of getting persecuted, hence took their wealth along with them.
The second point was the end of the Iran-Iraq war in 1989. Iran took nearly eight years to rebuild its economy, which had been badly hit, with Rial almost losing 100% of its value in comparison to the US dollar.
The penultimate point happens to be the worst devaluation for Rial. This had come during the final years of President Mahmoud Ahmadinejad’s stint. He had left power in the year 2013 but before that, Iran had suffered from severe sanctions from the international community, wherein the Rial lost around 400% more than its value on the markets of global currency.
Finally, the last turning point which is still on, was when US President Donald Trump had taken America out of the nuclear deal. It came as a shock that managed to sizzle through each aspect of Iran's already adversely affected economy.
It has indeed turned out to be a major world news update that can have its repercussions on other currencies as well.
Government Also Played Its Role
The Iranian Government has also put in stringent rules and regulations linked with access to foreign currency, hence resulting in a thriving black market for other currencies' cash inside Iran. Thus it managed to erode the value of their currency further.
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