Financial trouble can hit in any country at any given moment. Iran, a country warming up to crypto mining, is now changing its national currency out of sheer necessity.
It is not the first time that a government decides to change its domestic currency.
Goodbye Rial, Welcome Toman
In fact, this tends to happen quite regularly when hyperinflation remains a problem.
In Iran’s case, the national Rial will be replaced by the Toman.
Every Toman is worth 10,000 Rials, according to a new bill.
Slashing four zeros from the rial further confirms that things are not going according to plan in the country.
Iran is hit by severe US sanctions, and there is no resolution in sight.
The bill still needs to be approved by clerical authorities before the Toman will be introduced.
According to local sources, the Central bank of Iran expects this plan to be completed within the next two years.
At this time, one rial in Iran is worth 1/156,000th of the US Dollar.
With the Toman, that ratio will be reduced to 1/15.6th.
That is , assuming the new currency will not see its value plummet in the years to come.
Changing a domestic currency is only a temporary solution, as the underlying problems need to be addressed first and foremost.