Lawmakers in the Majlis on Monday approved articles and subarticles of the Bill to Reform the Country’s Monetary and Banking Act, a law which has dominated financial and economic exchanges in Iran since 1972.
The first article of the bill passed on Monday stipulates that Iran’s currency would be reversed to toman, a legal tender that was in use nearly 100 years ago in the country, and each toman will be equal to 10,000 rials.
An earlier version of the bill discussed in the committees of Majlis earlier this year had named the small unit for the new Iranian currency as Parseh.
However, the bill approved on Monday said each toman will be equal to 100 qirans, a reference to the currency of Iran between 1825 and 1932.
Article II of the bill on currency overhaul sets up a “Period of Transition” from rial to toman, saying the old and new currencies could simultaneously circulate in Iran for a maximum of two years.