“For a long time, we had a national currency that we recorded and a national currency that was used in spoken language. The rial did not actually exist in people's lives,” he said.
The president’s speech was broadcast by Iran’s state television.
He added that "a significant part of the errors in the banks was related to the confusion between the rial and the fog, as ordinary people and bank employees were mistaken."
According to Rouhani, "the way people speak and how it will be recorded will henceforth be the same." "I do not think that from the point of view of economic growth or inflation this measure will have a noticeable effect, rather it is about the convenience of calculations and the beauty of the national currency," he said.
The Majlis (parliament) of Iran approved on Monday a bill to rename and denominate the national currency, according to which the Iranian rial is replaced by fog. During the exchange, 10 thousand rials will correspond to one fog. Thus, as a result of the denomination, the face value of the currency will be reduced by four orders of magnitude.
The fog was in circulation in Persia (the former name of Iran) until 1932, when it was replaced by rial. Now the reverse replacement is made in order to simplify cash settlements. Until now, fog was considered an unofficial monetary unit and equated to 10 rials. The rial is featured on Central Bank notes and on price tags in stores, but in everyday speech, Iranians almost always translate prices into fogs, which introduces a certain confusion.
According to Rouhani, "the way people speak and how it will be recorded will henceforth be the same." "I do not think that from the point of view of economic growth or inflation this measure will have a noticeable effect, rather it is about the convenience of calculations and the beauty of the national currency," he said.
The Majlis (parliament) of Iran approved on Monday a bill to rename and denominate the national currency, according to which the Iranian rial is replaced by fog. During the exchange, 10 thousand rials will correspond to one fog. Thus, as a result of the denomination, the face value of the currency will be reduced by four orders of magnitude.
The fog was in circulation in Persia (the former name of Iran) until 1932, when it was replaced by rial. Now the reverse replacement is made in order to simplify cash settlements. Until now, fog was considered an unofficial monetary unit and equated to 10 rials. The rial is featured on Central Bank notes and on price tags in stores, but in everyday speech, Iranians almost always translate prices into fogs, which introduces a certain confusion.
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