Tehran, October 6: Iranian parliament has approved a long-awaited plan to remove four zeros from its embattled national currency, the rial, Iran International reported. The move comes as the country grapples with prolonged inflation exceeding 35% and a sharp decline in currency value, now trading at around 1,150,000 rials per US dollar in the free market.

Under the new law, 10,000 rials will be redefined as 1 new rial, and a new subunit called the qiran, or gheran, will be introduced, equal to one-hundredth of a rial. According to Shamseddin Hosseini, head of the Iranian Parliament’s Economic Committee, the Central Bank of Iran (CBI) has been granted two years to prepare for the change, which will be followed by a three-year transition period where both old and new rials will circulate together. Iran’s Grand Ayatollah Makarem Shirazi Issues Fatwa Declaring Donald Trump, Benjamin Netanyahu As ‘Enemies of God’; Urges Muslims Around the World to Kill Them.

Iran Approves Currency Overhaul, Govt to Drop 4 Zeros From Iranian Rial

“The reform is not cosmetic,” Hosseini told state TV. “It is a necessary response to years of high inflation that have eroded the value and functionality of our currency,” he added.

The legislation passed with 144 votes in favor, 108 against, and three abstentions. Critics argue that the move does not address Iran’s deeper economic problems, including structural imbalances, fiscal deficits, and monetary policy limitations. Is Israel Seeking To End War With Iran? Here's What WSJ Report Says Amid Escalating Tensions.

Why Iran Is Redenominating Rial?

Years of sanctions and economic mismanagement have decimated the rial’s value, which has led to widespread confusion in financial transactions. Currently, 1 Indian Rupee equals approximately 456 rials, and prices for everyday goods can run into millions of rials, further overwhelming both consumers and digital payment systems.

“This will not strengthen the rial’s real value,” said Hossein Samsami, an Iranian MP, in remarks to ISNA. “Prestige doesn’t come from fewer zeros, it comes from sound economic policy.”

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