Iran’s Parliament is moving forward with a plan to eliminate four zeros from the rial to combat inflation and ease financial operations. The Economic Commission has authorized the initiative, which requires final approvals from the Parliament and the Constitutional Council. The redenomination will see 1 new rial equivalent to 10,000 of the existing currency, divisible into 100 qirans. The intent is to simplify financial transactions and accounting by minimizing the use of excessive zeros in daily calculations, facilitating easier currency exchange calculations and reducing the cost of producing banknotes. The plan proposes that 920,000 rials per U.S. dollar would be represented as 92 new rials. This is happening in the face of economic instability, which worsened after the U.S. imposed sanctions in 2018, following the breakdown of the nuclear agreement. The exchange rate was at 32,000 rials per dollar in 2015, and approximately 10 lakhs by the present time.
