In a landmark monetary reform, Iran’s parliament has approved a plan to remove four zeros from the national currency, the rial, to simplify everyday transactions and accounting amid persistent inflation exceeding 35%.
The Central Bank of Iran will have two years to prepare for the rollout, followed by a three-year transition period where both old and new notes will circulate simultaneously. The rial will retain its name despite earlier discussions about renaming it.
With the free-market exchange rate hovering around 1,150,000 rials per US dollar, this reform aims to make pricing and record-keeping more practical. Supporters say it will modernize Iran’s financial system and improve usability, while critics argue that removing zeros does not address the root causes of economic weakness.
The decision follows similar measures in other inflation-hit countries and reflects Iran’s attempt to enhance financial efficiency while grappling with deeper structural challenges such as sanctions and fiscal imbalances.
