Economy, Business And Markets

New Banknotes Coming

New Banknotes Coming New Banknotes Coming

The manager of the Central Bank of Iran’s printing department has announced that the bank will print new versions of the 50,000 banknotes and 500,000 rial Iran Checks, which (like hard cash) are similar to IOUs.

Majid Saniee said the CBI would begin the distribution of the new versions of the notes and checks in the coming weeks.

In the current Iranian calendar year, printing of new notes has increased 10 percent from the year before, he noted.

Many smaller denomination notes have been removed from circulation and replaced with coins, he explained. “Coins have replaced older 50 and 100 rial notes.  

Over 570 million old worn-out bills were removed from circulation in the past twelve months.

Saniee suggested that the new 20,000 rial note would be unveiled before the year is out (March 20).

The CBI in recent months has stepped up efforts to refresh the currency through different methods including broadening the offer of Iran Checks to one million rials, and by stabilizing the supply of both minted and printed currency.

Last Monday the CBI announced it would release a new version of the 50,000 rial note. The new note replaces the former version, which has a nuclear energy sign on the center part of the reverse side. The new design carries the concrete gates of Tehran University’s Enghalab street campus, which acts as a symbol for higher education learning and has been a heavily used symbol since 1979.

The new note was unveiled on the 80th anniversary of the approval of the university’s charter.

The university gates used to appear on the reverse side of the 500 rial banknote, which has fallen into disuse over the past 15 years due to galloping inflation and a need for larger denomination.

 Refreshing Notes in Circulation

Selected branches of banks will distribute newly printed banknotes as of Saturday. The banks include Melli, Saderat, Mellat, Eghtesad Novin, Karafarin, Pasargad, and Post Bank. The selected branches will duly be announced, Behzad Ghiasvand, a top ranking CBI executive, said.

Six trillion rials ($215 million at official exchange rate) worth of new banknotes will be distributed in Tehran and 9 trillion rials ($322 million) in other cities.    

The number of branches distributing fresh banknotes has increased this year.

Introducing new prints, replacing worn-out bills, and ensuring the amount of CBI reserves are the main reasons why new bills are printed each year.