Iran, August 6 — Iran is set to redenominate its national currency, slashing four zeros from the rial in a long-anticipated move aimed at simplifying financial transactions and curbing hyperinflation-related distortions, Financial Times reports.
The Iranian parliament’s economic committee has approved the key provisions of the redenomination bill. Under the new structure, 10,000 current rials will equal 1 new rial, while the currency will retain its original name. Additionally, a new subunit called the “geran” will be introduced, with 1 new rial equal to 100 gerans.
Officials believe the reform will reduce the cost of printing money and ease daily accounting processes in both public and private sectors. While no official date for implementation has been announced, the central bank is expected to begin public awareness campaigns ahead of the transition.
The move comes amid years of high inflation and currency devaluation, exacerbated by international sanctions and internal economic challenges.
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