Iran drops four zeros off Rial

Shafaq News – Tehran

Iran’s parliament on Sunday approved a bill to remove four zeros from the national currency, a measure aimed at simplifying transactions as the rial faces intense pressure from soaring inflation and a rising US dollar.

Under the legislation, 10,000 Iranian rials (1,000 tomans) would be converted into one new rial, while retaining “rial” as the country’s official currency. The bill still requires approval from the Guardian Council before taking effect.

The dollar has climbed to around 1.172 million rials (117,200 tomans) on Iran’s free market, its highest level in months. Analysts warn it could rise further, potentially reaching 1.65 million rials (165,000 tomans), as inflation nears 90 percent.

Over recent years, the rial has steadily lost value against foreign currencies, prompting the central bank to introduce multiple measures aimed at stabilizing the exchange rate.

*1 Toman = 10 Iranian Rial