Iran okays plan to drop zeroes from wilting rial

Iran’s parliament has approved a plan to remove four zeros from the national currency, the rial, which has sharply depreciated as the country grapples with renewed sanctions.

Lawmakers passed the bill two months after a parliamentary commission revived the long-stalled proposal aimed at simplifying transactions, the legislature’s website says.

Under the plan, 10,000 current rials will be replaced by one new rial.

Both versions will circulate for up to three years, with the central bank given two years to launch the transition.

The move still requires approval by the Guardian Council and the signature of President Masoud Pezeshkian to take effect.

The rial has hit repeated record lows in recent days, according to black market trackers, amid the reimposition of United Nations sanctions on Iran. It is currently trading at about 1,115,000 to the US dollar.

In daily life, Iranians drop a zero from the rial and use the resulting figure, called the toman, for most transactions.