Iran's parliament approved removing four zeros from the national currency, the rial, on October 6th, 2025, following a significant devaluation that saw it trade at over one million rials to the U.S. dollar on the free market. The decision, confirmed by Reuters, aims to address hyperinflation and simplify transactions. The move by the Majlis (parliament) signifies a major currency reform intended to stabilize the economy. The rial has faced severe depreciation in recent years, exacerbated by international sanctions and domestic economic challenges. The approval comes after extensive debate and is seen as a necessary step to restore confidence in the currency. Sources close to the parliamentary proceedings indicated that the legislative body voted overwhelmingly in favor of the currency redenomination. The exact timeline for the implementation of the new currency, which will effectively be the 'new toman' (equal to 10,000 old rials), has not yet been announced, but is expected to be rolled out in phases.
