Overview

• The parliamentary economic committee approved cutting four zeros from the Rial, setting one new unit equal to 10,000 old Rials.
• Lawmakers decided to keep the “Rial” name despite earlier discussions of adopting a new currency title.
• The measure now requires approval from the full parliament and endorsement by the Guardian Council before it can take effect.
• Iran’s currency has fallen to around 920,000 Rials per U.S. dollar on the black market, driving soaring inflation and widespread use of the Toman for daily transactions.
• Officials point to precedents in Turkey’s 2005 lira reform and multiple redenominations in Argentina and Venezuela as successful models for this move.