MRC: Rial Redenomination Should Come After Structural Reforms

The Majlis Research Center has called on the government postpone its rial redenomination agenda until after the economy has undergone fundamental structural reforms. 

As per the ‘Reforming Monetary and Banking Law’ four zeroes will be shaved off from the national currency and the legal tender will be changed from the rial to the commonly used ‘toman’. 

In a review of the anticipated change, published on its website, the parliamentary research center said removing zeroes "must be the last stage of a series of measures to reform monetary and economic structures."

The influential think tank cited examples of countries that successfully changed their national currency after making deep structural reforms,, namely controlling inflation.

"Lopping off zeroes has no impact on fundamentals of the economy, such as inflation, economic growth and improving the value of the national currency," the MRC  stressed.