Iran decides to eliminate four zeros from national money
Iran's government and parliament have taken a significant step towards monetary reform, approving a plan to remove four zeros from the national currency, the rial. The move, aimed at streamlining financial transactions and restoring the currency's dignity, comes amidst severe depreciation of the rial due to economic challenges, particularly the U.S. maximum pressure campaign and sanctions.
The plan, which was approved by the cabinet on August 10, 2025, follows the parliament's economic commission's vote in favor of the change during a review of a bill amending the Monetary and Banking Law. The national currency will remain the rial, but will be subdivided into a unit called the gheran (or qiran), with one rial equal to 10,000 of the current rials and subdivided into 100 gherans.
The transition will be gradual, with two currencies circulating temporarily during the switch. However, the bill still requires formal approval from Iran's full parliament and the Guardian (Constitutional) Council before it becomes law. Some procedural and technical issues remain to be resolved to avoid conflicts with recent legislation, and the Economic Commission awaits the Guardian Council's position.
The rial trades at approximately 42,000 per U.S. dollar officially but exceeds 920,000 in the black market. Government spokeswoman Fatemeh Mohajerani made the announcement, stating that the move is a step towards stabilizing the country's economy.
The decision to remove four zeroes from the currency was first proposed in 2019 and passed the following year. The Central Bank governor, Mohammad Reza Farzin, has confirmed the government's pursuit of the plan. The new currency units will be split into 100 gherans, making transactions easier and reducing the risk of errors.
This monetary reform comes at a critical time for Iran's economy, which has been facing challenges including soaring inflation due to sanctions and the "maximum pressure" campaign by the US. The U.S. maximum pressure campaign, which reinstated sanctions following the 2018 U.S. withdrawal from the 2015 nuclear deal, has caused sharp depreciation of the rial and complicated the economic environment for such reforms.
In summary, Iran is actively proceeding with the removal of four zeros from its currency, but full implementation is pending parliamentary and Guardian Council approval. This occurs against the backdrop of ongoing U.S. sanctions and economic pressure, which have significantly weakened the rial and complicated the economic environment for such reforms.
Read also:
- Criticism of motor finance compensation measures turned down by FCA leader
- India Dismisses Trump's Warning Regarding Russia-Oil Trade Tariffs as Unwarranted
- Italian biomethane producer receives €245 million investment from Infranity
- New York's sizable budget deficits thwart Mamdani's extravagant financial aspirations due to limited funds.
