Iran is moving forward with a currency redenomination, slashing four zeros from the national currency, the rial, in an effort to simplify financial transactions and reduce printing costs, RIA Novosti reported, citing Farid Mousavi, a member of the Iranian parliament’s Economic Affairs Committee.
Mousavi emphasized that the reform “has nothing to do with inflation or the rial’s exchange rate,” describing it instead as a technical measure aimed at easing cash circulation and accounting amid persistent inflation.
“Our goal is to simplify financial operations and lower the costs of printing banknotes,” he explained. “Because of inflation, the real value of our banknotes fell so sharply over the years that reprinting became necessary.”
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Under the reform, the rial will remain Iran’s national currency, but it will be subdivided into 100 qerans – a historical denomination once used in the 19th and early 20th centuries. The Central Bank of Iran must begin the transition within two years, with a three-year adjustment period allowing the use of both old and new banknotes.
The move is largely symbolic and psychological, Mousavi noted, adding that ordinary Iranians will feel the change gradually as new banknotes enter circulation.
While the redenomination is not expected to affect inflation or purchasing power, authorities believe it will stabilize the financial system, streamline accounting, and strengthen public confidence in the national currency.
Interestingly, even before the reform, Iranians informally used the term “toman” – the pre-1979 currency – to drop zeros when quoting prices, effectively anticipating the government’s official adjustment.
