The government of Iran approved the name change of the national currency

Iranian authorities have approved a plan of monetary reform, in which the national currency is requested to return the name of “fog”. The proposal was approved on 7 December 2016 at the meeting of the Council of Ministers of Iran under the chairmanship of President Hassan Rouhani, according to the website of the President.

If developed, the Central Bank of Iran, the document will be adopted also by Parliament, Iran will be redenominated in which outstanding Riyal will replace the fogs at the rate of 10:1, says Iranian news Agency Mehr.

Gold coins called “fog” which comes from the Turkic “ten thousand”, first appeared in Persia in the late eighteenth century. Then one fog gave 10 thousand dinars or 8 rials, worth 1250 dinars each. In 1890 the Bank of Persia was first released into circulation banknotes 1, 2, 3, 5, 10, 20, 25, 50, 100, 500 and 1,000 tomans, which were in circulation until 1923. In 1924, entered into circulation new banknotes 1, 2, 5, 10, 20, 50 and 100 tomans. But in 1932 to replace the fog came Rial, a course which was then set at was 59.75 Rial for British pound. In 1945 the Central Bank of Iran has reoriented its currency to the U.S. dollar, the exchange rate was initially set at 32.25 Rial per dollar.

In subsequent years, the rate of Iranian currency has declined steadily, and after the overthrow of the last Shah and the establishment of the Islamic Republic collapsed. In the spring of 1978 for one dollar was about 70 rials in 20 years — more than 9 thousand riyals.

A new round of devaluation of the Rial occurred in 2012 after the introduction of first the US and then the EU oil embargo against Iran. In the fall of 2012 the rate of the Iranian Rial for one week has fallen in the informal market to 21%, and reached 35.5 thousand rials per dollar. Currently, the dollar exchange rate set by the Central Bank of Iran at 32 151 Rial.

In circulation in Iran now are banknotes of 1000, 2000, 5000, 10 thousand, 20 thousand, 50 thousand and 100 thousand riyals. Thus in common parlance often uses the word “fog”, which represent the amount of 10 rials, which allows to simplify calculations and to write less zeros on the price tags, setting the prices in the mists.

Conceived by the government of Iran the monetary reform may become another step aimed at simplifying the calculations for the residents of the country. In September, Iranian banks with the permission of the Central Bank of the country first began issuing credit cards.