Business And Markets

New Banknotes Will Last Longer

New Banknotes Will Last LongerNew Banknotes Will Last Longer

The Central Bank of Iran is designing new banknotes that could be used even after the ‘currency revaluation’ plan is implemented, head of its money printing department said.
Pointing to the design of recently unveiled banknotes, in which four zeroes are printed in light color, Amir Shokri said the CBI has “designed intergenerational banknotes" that would be used either under the present currency unit or when the new unit becomes legal tender, the news agency of the Monetary and Banking Research Institute, IBENA reported. 
The CBI said Saturday that new 1,000,000-rial ‘Iran Check’ and the 100,000-rial banknote will be circulated in the near future. The new notes have light-hued zeroes, a further attestation of the government’s plan to remove four zeroes from the national currency.
It has been reported several times that the CBI has plans to redenominate the rial by shaving off four zeroes and change the monetary unit from rial to the popularly used ‘toman’. 
As part of rules under the ‘Reforming Monetary and Banking Law’ passed in May "the currency unit will be toman and each toman will be worth 10,000 rials and 100 qerans”.
Shokri added that the average lifespan of banknotes in Iran is five years and the new banknotes would last much longer.
Given the monumental volume of money in circulation due to the tanking of the rial, eight billion banknotes are now in circulation. It is said that the government spends 4 trillion rials ($15 million) every year to destroy mutilated banknotes and print new ones. 

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