Iran's parliament approved legislation on Sunday to remove four zeros from the rial as the country confronts severe currency depreciation and international sanctions. The Iranian Labour News Agency reported that 10,000 current rials will become one new rial under the plan. Both currencies will circulate together for up to three years, and the central bank has two years to begin implementation.
The measure aims to simplify transactions complicated by inflation that forces citizens to carry large cash bundles for basic purchases. Supporters argue the change will ease accounting procedures and reduce banknote printing costs, but critics warn the reform is cosmetic without fundamental economic changes. Economists cite Turkey's successful 2005 redenomination, which worked because it accompanied strict inflation controls, while Zimbabwe's failed attempts between 2006 and 2009 led to hyperinflation and currency abandonment.
The parliament's economic committee finalized details on Aug. 3, 2025, retaining the rial name rather than adopting the toman. The new currency will be divided into qirans, with 100 qirans equaling one rial.
The measure aims to simplify transactions complicated by inflation that forces citizens to carry large cash bundles for basic purchases. Supporters argue the change will ease accounting procedures and reduce banknote printing costs, but critics warn the reform is cosmetic without fundamental economic changes. Economists cite Turkey's successful 2005 redenomination, which worked because it accompanied strict inflation controls, while Zimbabwe's failed attempts between 2006 and 2009 led to hyperinflation and currency abandonment.
The parliament's economic committee finalized details on Aug. 3, 2025, retaining the rial name rather than adopting the toman. The new currency will be divided into qirans, with 100 qirans equaling one rial.
