Iran’s parliamentary economic commission has revived a stalled plan to drop four zeros from its currency, the rial, in an effort to simplify financial transactions and improve the currency’s image.
The proposal, approved by the commission, would redefine one currency as equivalent to 10,000 current rials, subdivided into 100 gherans.
Originally proposed in 2019, the redenomination plan now awaits a parliamentary vote and approval from the Guardian Council. Central Bank Governor Mohammad Reza Farzin expressed support for the move, citing the currency's poor reputation internationally.
The announcement comes as Iran grapples with severe economic challenges, including runaway inflation, a sharply devalued currency trading unofficially at about 920,000 to the US dollar, and ongoing international sanctions—especially following the US withdrawal from the nuclear deal and reimposition of “maximum pressure” sanctions under former President Trump.
In everyday life, Iranians typically use the toman (equal to 10 rials) for transactions rather than the official currency.
Political turbulence continues alongside economic struggles, with a new economy minister recently approved after a no-confidence vote, and recent conflict including an Israeli attack on Iranian nuclear and military sites.
