Removing four zeros from the national currency, the rial, will help facilitate people’s financial transactions, said the governor of the Central Bank of Iran (CBI).

In an address to an open session of the Iranian Parliament on Sunday, Abdolnaser Hemmati said that at present there are nine billion banknotes in circulation in Iran, according to IRNA.

He also noted that once the zeros are removed, the number of banknotes in Iran will stand at 2.2 billion, adding that the move will also lead to the coins returning to the country’s economic cycle.

Hemmati said the issue of improving the appearance of the national currency was a necessity which has been discussed and studied frequently for a long time.

The national currency has practically lost some of its value to inflation, the CBI head noted, adding that people do not use the rial to refer to their national currency and prefer the toman – each 10 rials equals one toman.

The goal pursued by revaluating the rial tenfold and reverting to the currency’s old name, the toman, is to make trade and financial transactions and affairs easier for the people of the country, he said.

The rial’s devaluation has practically led to coins’ exclusion from people’s financial transactions, Hemmati added, noting that producing a 500-toman coin (11 cents), costs 800 tomans (19 cents) for the Iranian government.

To restore balance to the country’s monetary system, “we require a four-year period,” Hemmati said.

According to wiki informations, unsourced material may be challenged and removed. Redenomination is the process of changing the face value of banknotes or coins in circulation. It may be done because inflation has made the currency unit so small that only large denominations of the currency are in circulation.

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Hemmati’s comments on Instagram came amid reports that the rial had resumed its long-anticipated recovery against the US dollar on Thursday as it traded 118,000 against the greenback, a surge of around 13 percent compared to earlier in July when each dollar had been sold for 135,000 Iranian  rials.

“Today, me and my colleagues in the CBI are proud that we have had a tiny share in the all-out resistance and victory of the Iranian people against this big plot (which came) in one of the most sensitive periods of the country’s history,” said Hemmati.

The official, however, admitted that US sanctions had caused difficulties for the Iranian households through the shocks they created in the markets and the increased inflation that followed.

Iran reports lower inflation in the month ending July 22 as the rial bounces back against the dollar.

Iran has been faced with some of the harshest sanctions ever imposed on a country after US President Donald Trump  withdrew from a major international agreement on Tehran’s nuclear program in May last year.

The sanctions began in November and were toughened in May this year after Trump’s administration cancelled waivers granted to several major buyers of Iran’s oil.

However, official data released by the government this week showed that consumer inflation had started to decline in the month ending July 22.

The surge of the Iranian rial and the declined inflation comes despite renewed military tensions in the Persian Gulf where Iran has refused to release a British tanker it seized last Friday in retaliation for Britain’s seizure of an Iranian supertanker earlier this month in its overseas territory of Gibraltar.

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“The government submitted the bill on crossing out four zeroes of the national currency to the parliament on Saturday and we hope to reach a good result as soon as possible,” Abdolnasser Hemmati said answering the parliament members’ questions.

Underlying CBI’s full control on domestic foreign currency exchange market, the banking official predicted that regarding the conducted measures, injection of foreign currency to domestic market by Iranian non-oil exporters would be accelerated in future.

Hemmati, elsewhere, named the taken measures for modification of banking system and bringing stability to monetary market among the most major CBI acts in recent months.

As Hemmati announced few days ago, since his appointment as the CBI governor, all the required programs to amend banking system have been planned relying on ratifications of the Supreme Council for Economic Coordination and formation of Liquidity and Money Market Committee consisting of economy, monetary and banking experts besides central bank officials.

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 Secretary of the Expediency Council and former IRGC commander Mohsen Rezaei has referred to the current economic situation, saying the Iranian nation will get through the difficulties and help the national currency regain its lost value.

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