TEHRAN: Iranian government spokeswoman Fatemeh Mohajerani announced the cabinet’s approval to remove four zeros from the national currency, the rial.
The decision was made during a cabinet meeting in Tehran, following a motion passed by the parliament’s economic commission last week.
Mohajerani clarified that the rial would remain the official currency, with its subdivision called the gheran.
She noted that the transition would take time, with both old and new currencies circulating temporarily.
Shamseddin Hosseini, head of the parliament’s economic commission, earlier stated the reform aims to simplify financial transactions.
Under the plan, one new rial would equal 10,000 current rials and be divided into 100 gherans.
The proposal still requires approval from Iran’s parliament and the Constitutional Council before implementation.
Iran’s currency has faced significant devaluation since the US withdrew from the 2015 nuclear deal and reimposed sanctions in 2018.
The economic measures have contributed to ongoing financial instability in the country. – Bernama-Xinhua