1,000 rial

January 10-2014

The Central Bank has decided to lop some zeros off the rial (photo) next year.  Mahmud Ahmadi, a senior official of the Central Bank, said the plan was to make the change in the second half of the next Persian year (September 2014-March 2015).  The Mehr news agency said “at least” three zeros would dropped.  But there was no formal announcement and the word did not come from the governor himself.  That and the imprecision on the number of zeroes to be dropped led to some doubts that anything has been decided.  The Bank has discussed lopping off zeroes for years.  With the national budget now in the quadrillion rials, finances become a jungle of zeroes.  Under the previous administration officials said the Bank did not want to make the change until the rial stabilized.  The rial has now been stunningly stable for six straight months.  Since June 27, the dollar has never sold on the open market for more than 31,000 rials or less than 29,000.  (See chart on Page Five.)