Iran revives plan to slash four zeros from currency amid economic turmoil

Iran’s parliament has revived a long-delayed proposal to redenominate its currency by removing four zeros from the rapidly depreciating rial, in a bid to simplify financial transactions and restore confidence in the national currency.

The decision was announced on Sunday following a meeting of the parliamentary Economic Commission. According to the commission’s chairman, Shamseddin Hosseini, the panel approved the removal of four zeros and reaffirmed the rial as Iran’s official currency.

Under the proposed plan, one new Rial would be equal to 10,000 of the current Rials and subdivided into 100 “gherans,” according to the parliamentary news agency ICANA.

Originally introduced in 2019, the currency reform plan was shelved amid political and economic instability. The current bill still requires approval in a full parliamentary vote and must pass the Guardian Council, which has the authority to vet legislation. No date for the parliamentary vote has been announced.

Iran’s Central Bank Governor Mohammad Reza Farzin voiced support for the redenomination in May, saying the current form of the rial projects a poor image internationally. The move comes as Iran struggles with spiraling inflation, a collapsing currency, and the ongoing impact of harsh international sanctions.

As of Sunday, the Rial traded at approximately 920,000 to the U.S. dollar on the unofficial market, according to the Bonbast website, which monitors exchange rates. In day-to-day life, most Iranians already use the "toman" — worth 10 Rials — instead of the Rial, further highlighting the need for currency simplification.

Iran’s economic crisis deepened after the U.S. withdrew from the 2015 nuclear agreement in 2018 under President Donald Trump and reimposed sweeping sanctions. Trump resumed his "maximum pressure" campaign upon returning to office in January 2025.

In June, Iran appointed a 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, Iran was rocked by a 12-day war sparked by an unprecedented Israeli attack on its nuclear and military sites, further compounding the nation’s economic and political challenges.