Iran to Remove Four Zeros from Rial: A Currency Redenomination Plan

Iran is set to remove four zeros from its currency, the rial, in a move approved by the Economic Commission of Iran’s Parliament. This plan aims to combat persistent inflation and streamline financial transactions. The new currency will retain the name ‘rial,’ with one unit equaling 10,000 of the current rials, further divided into 100 gherans. The primary goal is to simplify everyday financial calculations and reduce the need to express large numbers in millions or billions. For instance, an exchange rate of 920,000 rials per U.S. dollar would become 92 new rials per dollar, making calculations less complex. The redenomination also seeks to lower the costs associated with printing banknotes. This decision comes amid economic challenges and currency devaluation, particularly following U.S. sanctions in 2018 after the collapse of the nuclear agreement.