Iran’s parliamentary economic commission has approved a motion to remove four zeros from the national currency, the rial, according to IRNA. The plan, originally proposed during former President Hassan Rouhani’s administration in 2019, aims to simplify financial transactions amid ongoing currency depreciation.
The currency will retain the name “rial,” with the new rial equal to 10,000 of the current rial and divided into 100 smaller units called gherans. However, the proposal still requires full parliamentary approval and a green light from the Constitutional Council before it becomes law.
The rial’s sharp decline began after the U.S. exited the 2015 nuclear agreement in 2018 and reimposed sanctions, causing significant economic challenges and reducing the currency’s value.
