Newsletters
Iran’s parliament on Sunday revived a long-delayed plan to slash four zeros from the national currency, the rial, in a bid to simplify financial transactions and restore confidence in the country’s battered economy.
“Today’s meeting of the economic commission approved the name ‘rial’ as the national currency, as well as the removal of four zeros,” said Shamseddin Hosseini, chairman of the commission, according to the parliament’s website ICANA.
Under the proposed redenomination, one new rial would equal 10,000 of the current rials and be divided into 100 gherans, ICANA reported.
Originally proposed in 2019, the currency overhaul was shelved amid political and economic uncertainty. The current version must still pass a full parliamentary vote and be approved by the Guardian Council, which has the authority to vet legislation. No date for the vote was announced.
Central Bank Governor Mohammad Reza Farzin, who reaffirmed his commitment to the plan in May, said the Iranian rial “does not have a favorable image” in the global economy.
The push for currency reform comes as Iran grapples with deepening economic woes, including soaring inflation, a free-falling currency, and the continued impact of U.S.-led international sanctions.
On Sunday, the rial traded at roughly 920,000 to the U.S. dollar on the unofficial street market, according to local media and the Bonbast website, which monitors non-official exchange rates.
In everyday life, most Iranians use the toman — equal to 10 rials — for simplicity. The proposed changes would formalize a shift long adopted in practice.
Iran’s economy has been under immense pressure since 2018, when the United States withdrew from the nuclear deal under then-President Donald Trump and reimposed sweeping sanctions. After returning to office in January, Trump renewed his “maximum pressure” campaign against Tehran.
In June, Iran’s parliament approved new Economy Minister Ali Madanizadeh after his predecessor, Abdolnaser Hemmati, was removed in a no-confidence vote over his handling of the economy.
That same month, tensions escalated further when Israel launched an unprecedented strike on Iran’s nuclear and military infrastructure, triggering a deadly 12-day war.
2 min read
2 min read
