11.08.2025, 11:40
Iran approves project to remove four zeros from banknotes
Source: OREANDA-NEWS
OREANDA-NEWS The Iranian government approved at a meeting on Sunday a bill to remove four zeros from the banknotes of the national currency, government spokeswoman Fatemeh Mohajerani said.
"At today's cabinet meeting, a project was approved to remove four zeros from the country's national currency," Tasnim news agency quoted Mohajerani as saying.
In December 2024, the Iranian media reported that Iranian President Masoud Pezeshkian had submitted a bill on financial reform to the country's parliament for consideration. According to it, the national currency "Iranian rial" should be replaced with "Iranian fog" by removing four extra zeros from the banknotes. For example, a bill of 100,000 rials should turn into a bill of 10 tumans.
As reported by the Iranian Mehr news agency, the reform aims to combat the problems caused by chronic inflation and low purchasing power of the currency, in particular, the growth in daily transactions and the negative image of the national currency relative to foreign ones.
The bill provides for a two-year "transition period" in which Iranians will be able to pay in both rials and tumans.
The Iranian rial is a very cheap currency, so one ruble is estimated at 4885.5 rials, and for one dollar you would have to pay more than 420 thousand rials (at the exchange rate of the central bank of the Islamic Republic), the dollar price reached a record 770 thousand rials in the market. This causes difficulties in terminology: Iranians are used to reducing the amount by an order of magnitude (tenfold) and naming the price in "tumans" – the currency that was used in Iran before the 1979 Islamic Revolution. Sometimes a reduction of ten times is not enough, and the amount is reduced by another three orders of magnitude, while calling the unit of assessment the same "fog". Eliminating the four zeros should make calculations easier.
"At today's cabinet meeting, a project was approved to remove four zeros from the country's national currency," Tasnim news agency quoted Mohajerani as saying.
In December 2024, the Iranian media reported that Iranian President Masoud Pezeshkian had submitted a bill on financial reform to the country's parliament for consideration. According to it, the national currency "Iranian rial" should be replaced with "Iranian fog" by removing four extra zeros from the banknotes. For example, a bill of 100,000 rials should turn into a bill of 10 tumans.
As reported by the Iranian Mehr news agency, the reform aims to combat the problems caused by chronic inflation and low purchasing power of the currency, in particular, the growth in daily transactions and the negative image of the national currency relative to foreign ones.
The bill provides for a two-year "transition period" in which Iranians will be able to pay in both rials and tumans.
The Iranian rial is a very cheap currency, so one ruble is estimated at 4885.5 rials, and for one dollar you would have to pay more than 420 thousand rials (at the exchange rate of the central bank of the Islamic Republic), the dollar price reached a record 770 thousand rials in the market. This causes difficulties in terminology: Iranians are used to reducing the amount by an order of magnitude (tenfold) and naming the price in "tumans" – the currency that was used in Iran before the 1979 Islamic Revolution. Sometimes a reduction of ten times is not enough, and the amount is reduced by another three orders of magnitude, while calling the unit of assessment the same "fog". Eliminating the four zeros should make calculations easier.
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