Iran: Parliament Commission Approves plan to remove four zeros
Iran moves forward with Currency Reform: Parliament Commission Approves plan to remove four zeros
Tehran, Iran — In a significant monetary policy development, the Economic Commission of Iran’s Parliament has conditionally approved a proposal by the Central Bank of Iran (CBI) to slash four zeros from the national currency, the rial. The move is part of a broader economic reform plan aimed at simplifying financial transactions and restoring public confidence in the currency amid persistent inflation.
The decision, announced late Tuesday, follows months of deliberation between the Central Bank and lawmakers over the practicality and potential consequences of the redenomination plan. The proposal still requires final approval from the full Parliament (Majles) before implementation.
A New Toman on the Horizon
If ratified, the plan will replace the rial with a new unit of currency—likely to be named the “toman,” reviving a traditional denomination long used informally by Iranians. Under the proposed scheme, 10,000 rials would become 1 new toman.
According to officials at the Central Bank, the currency overhaul aims to facilitate smoother transactions, improve accounting practices, and align the physical money supply more realistically with current prices. The country has suffered from high inflation for years, exacerbated by international sanctions and economic mismanagement.
Conditions for Implementation
The Economic Commission’s approval came with several conditions, including a phased implementation over at least two years and rigorous public education campaigns to ensure a smooth transition. Additionally, the Central Bank must present detailed plans on how the redenomination will affect electronic payment systems, cash logistics, and inflation control.
Mohammadreza Pour-Ebrahimi, chairman of the Economic Commission, emphasized that the reform is “not a solution to inflation by itself” but a necessary structural step. “Monetary discipline, budget transparency, and anti-corruption measures must accompany this reform,” he said during the session.
Public Reaction and Expert Opinions
Reactions from economists have been mixed. Some praise the measure as a long-overdue modernization step, while others caution that without broader fiscal reforms, the impact will be mostly symbolic. Citizens remain skeptical, with many concerned about the psychological effects on prices and purchasing power.
Ali Salehabadi, Governor of the Central Bank, reiterated that the redenomination is part of a “comprehensive monetary strategy” and not merely a cosmetic change. “We are determined to make this a success, learning from other countries’ experiences such as Turkey and Venezuela,” he noted.
What’s Next?
The bill is expected to be debated in Parliament in the coming weeks. If approved, a multi-year rollout will begin, involving new banknotes, software updates, and intensive public outreach.
For now, Iran waits as its lawmakers weigh a bold attempt to reshape the nation’s monetary future.