Iran Revives Plan to Drop Four Zeros from Rial

Iran's parliamentary economic commission has revived a long-delayed proposal to remove four zeros from the rial, aiming to simplify transactions and address severe economic challenges. Under the plan, one new rial would equal 10,000 old rials and be divided into 100 gherans. The redenomination, first introduced in 2019 but later shelved, still requires parliamentary approval and the Guardian Council's review. The move comes amid rampant inflation, a rial trading at about 920,000 to the US dollar, and ongoing international sanctions, especially from the US following its 2018 withdrawal from the nuclear deal. Despite the rial's official status, most Iranians use the toman, worth ten rials, in everyday life. Central Bank Governor Mohammad Reza Farzin supports the reform, citing the rial's poor international reputation.