Guardian Council Approves Currency Redenomination, Returns Bill to Parliament for Technical Refinement
In a significant step towards Iran’s monetary reform, the Guardian Council has endorsed the core principle of removing four zeros from the national currency. The oversight body has, however, returned the broader “Currency and Banking Law” bill to the Islamic Consultative Assembly (Parliament) for the clarification of a specific legal technicality.
Key Endorsement with a Caveat
Hadi Tahan Nazif, the jurist member and official spokesman for the Guardian Council, confirmed that the council found no inherent legal issues with the fundamental plan to redenominate the currency by removing four zeros. This move is a central pillar of the government’s strategy to streamline the financial system and simplify monetary transactions for citizens and businesses.
The council’s primary reservation involved a potential ambiguity concerning the Central Bank’s authority in determining foreign exchange rates. The spokesman clarified that this stems from the need to harmonize the new bill with the recently ratified “Central Bank Law” of June 2023. The specific point of contention revolves around ensuring a clear legal mandate for the Central Bank in calculating and setting official currency rates.
Path Forward for Parliament
Emphasizing the procedural nature of this step, the spokesman stated that the bill was returned to Parliament to resolve this specific ambiguity and implement the necessary technical amendments. He further expressed the council’s readiness to conduct a final review and issue its definitive approval once the legislators have addressed the remaining legal question.
This development indicates that while the strategic goal of currency overhaul has received a crucial green light from the country’s constitutional watchdog, the final implementation awaits precise legislative drafting to ensure a seamless integration with existing financial laws.