Iran’s parliament has voted to remove four zeros from the rial. The move aims to make money easier to use and reduce confusion in daily life.
Under the plan, 10,000 rials will become one new rial. For up to three years, both the old and new notes will be in use. The central bank has two years to manage the full switch.
The rial is losing value quickly. On Sunday, it traded at about 1,115,000 to the US dollar. In early August, it was around 920,000. Sanctions and inflation have put heavy pressure on the economy.
Many people already use the “toman” in daily trade. It drops one zero from the rial and makes numbers shorter.
The idea of changing the currency first appeared in 2019. Lawmakers shelved it, but they have now revived and approved it. For the plan to start, the Guardian Council must give approval, and President Masoud Pezeshkian must sign it.
Iran’s leaders hope that a simpler currency will ease stress for citizens. They also want to rebuild public trust in the economy.
