Iran is taking steps to address its economic woes by removing four zeros from the rial. This initiative, approved by the Economic Commission of the Parliament, aims to mitigate inflation and simplify financial activities. The new rial will maintain the same name, with one unit equal to 10,000 of the existing currency and split into 100 gherans. The primary justification for this action is to make everyday financial dealings more manageable by reducing the prevalence of large numbers. A practical outcome of this redenomination is that calculations, such as those involving exchange rates, will be simplified. For example, an exchange rate of 920,000 rials to the dollar will be reduced to 92 new rials. The change also aims to cut down the cost of printing money. The depreciation of the Iranian rial accelerated following the imposition of US sanctions in 2018. Prior to that, in 2015, the exchange rate was approximately 32,000 rials per dollar; however, by the current year it has neared 10 lakhs.
