Iran's Parliament Approves Bill to Remove 4 Zeros from National Currency

Iran’s parliament on Sunday approved a bill to remove four zeros from the national currency, the rial, paving the way for a redenomination process in which the “rial” and “Qeran” will become the official currency units.

Lawmakers passed the bill after resolving objections raised by the Guardian Council to the amendment of the country’s Monetary and Banking Law. The measure was approved with 144 votes in favor, 108 against and three abstentions out of 262 lawmakers present.

Under the revised law, 10,000 current rials will be equal to one new rial, which will be divided into 100 Qerans. The Central Bank of Iran (CBI) will be responsible for setting foreign currency exchange rates and buying and selling currency in line with the prevailing monetary system and foreign currency reserves.

A maximum three-year transition period, referred to as the “dual circulation phase,” will allow both the current rial and the new rial to circulate simultaneously. During this time, existing banknotes and coins will be gradually withdrawn from circulation.

The CBI must prepare the necessary arrangements within two years of the law’s enforcement to start the transition. The beginning of this period will be announced publicly through the official gazette, electronic platforms, and state media.

The central bank will also draft implementing regulations within three months, subject to approval by the High Board and the Cabinet.

Iran’s redenomination plan has been under discussion for years amid high inflation and depreciation of the rial. Removing four zeros is aimed at simplifying financial transactions, accounting, and the use of currency in daily life, though analysts note it does not by itself address underlying inflationary pressures. - Tehran Times