Iran To Remove Four Zeros From National Currency As Parliament Approves Redenomination Bill

By Douglas Jones 

In a historic economic move, the Iranian parliament has approved a long-anticipated bill to redenominate the country’s national currency by removing four zeros from the rial. The decision, passed on Saturday after months of debate and scrutiny by the Guardian Council, is aimed at simplifying financial transactions and restoring public confidence in the nation’s battered economy.

Under the new monetary system, 10,000 current rials will be converted to 1 new rial, which will be divided into 100 smaller units known as “qerans.” Lawmakers explained that the measure will help streamline accounting, reduce printing costs, and make daily financial operations more manageable for businesses and citizens alike.

According to the approved plan, the Central Bank of Iran has up to two years to prepare for the transition, after which a dual-currency period lasting up to three years will begin, allowing both the old and new notes to circulate simultaneously before a full phase-out.

The move comes amid Iran’s persistent battle with inflation, which has remained above 35 percent for several years, and a severely weakened currency that currently trades at over 1,150,000 rials per U.S. dollar on the open market. Economists say the redenomination is more of a symbolic gesture intended to boost confidence than a solution to the country’s deep-rooted economic challenges.

“This will make transactions easier and figures shorter, but it will not revive the real value of our money,” one member of parliament was quoted as saying. “The prestige of a national currency is restored through production, stability, and trust—not cosmetic reforms.”

Supporters of the policy, however, argue that the change will help modernize Iran’s financial system and pave the way for further reforms needed to stabilize the economy, which has been strained by years of sanctions, fiscal mismanagement, and global isolation.

Iran joins a list of countries—including Turkey, Zimbabwe, and Venezuela—that have implemented similar redenomination measures in response to inflationary crises. Whether the move will translate into tangible relief for ordinary Iranians remains uncertain, as experts caution that without robust fiscal discipline and monetary reforms, the new rial may face the same fate as its predecessor.

The implementation process will involve redesigning banknotes, recalibrating payment systems, and a nationwide public awareness campaign to ensure a smooth transition. The Central Bank is expected to announce the timeline for the rollout of the new currency in the coming months.