Iran Approves Plan to Redenominate Currency, Drops Four Zeros from Rial
Iran’s parliament has approved a major plan to remove four zeros from the national currency, the rial. Lawmakers passed the bill to simplify transactions and strengthen public confidence. The decision comes as Iran faces renewed international sanctions.
Under the plan, 10,000 current rials will equal one new rial. Both versions will circulate for up to three years. The central bank will have two years to manage the transition. Officials say the change aims to ease daily payments and restore economic stability.
Currency Faces Pressure
The rial has seen record lows in recent weeks. On Sunday, it traded around 1,115,000 to one US dollar, compared to 920,000 in early August. This drop followed the reimposition of United Nations sanctions on Iran.
Britain, France, and Germany triggered the “snapback” mechanism last month, restoring international sanctions after Iran’s non-compliance with the 2015 nuclear deal. As a result, the economy has struggled under global restrictions and rising inflation.
The idea of redenomination first appeared in 2019 but was shelved. Now, it awaits approval from the Guardian Council and President Masoud Pezeshkian’s signature to take effect.
Everyday Impact
In daily life, Iranians often remove a zero from prices and use the toman as their informal unit. The reform will align the official currency more closely with common usage.
Economists view the move as symbolic but necessary. It may not solve inflation alone, but it could simplify accounting and restore public trust in the national currency.
