Iran plans to revalue, rename rial currency

Iranian rial banknotes are seen at a currency exchange shop in Kerbala, 110 km (70 miles) south of Baghdad January 27, 2012. REUTERS/Mushtaq Muhammed

BEIRUT (Reuters) - Iran plans to revalue its rial tenfold and revert to the currency’s old name, the toman, according to a bill approved on Wednesday by President Hassan Rouhani’s cabinet, the official Islamic Republic News Agency (IRNA) said.

The currency was called the toman until the 1930s and most Iranians still refer to it by that name.

Under the measure, which requires approval from parliament and the Guardian Council before taking effect, the renamed currency would be worth around 3,200 to the dollar at official exchange rates and 3,900 at unofficial rates.

The Council, made up of six clerics appointed by the Supreme Leader and six lawyers elected by parliament, vets all new legislation for compliance with religious laws and the constitution.

When the change was announced Wednesday, the rial dipped by about 90 to the dollar before recovering, according to agency Mehr News.

Reporting By Babak Dehghanpisheh; editing by John Stonestreet