Iran’s parliament has approved a bill to remove four zeros from the national currency in an effort to simplify financial transactions and restore confidence in the rial, which has been under severe pressure from skyrocketing inflation and the surging US dollar. The proposal, which converts 10,000 rials (1,000 tomans) into one new rial, still awaits final approval from the Guardian Council before implementation.
The rial has continued its sharp decline on the free market, with the dollar recently reaching about 1.172 million rials (117,200 tomans) — its highest level in months. Economists warn that the exchange rate could climb even higher, potentially hitting 1.65 million rials (165,000 tomans), as inflation approaches an alarming 90 percent.
Over the past few years, Iran’s currency has steadily lost value, prompting the central bank to adopt various measures to stabilize the exchange rate. Despite these efforts, the ongoing economic strain, compounded by sanctions and global market pressures, has made currency reform a pressing necessity.
