Iran launches law to cut zeros from currency

Shafaq News – Tehran

Iran has activated a law to remove four zeros from the
national currency and ordered the Central Bank to begin implementation, the
presidency announced on Saturday.

Iranian
media outlets said that President Masoud Pezeshkian activated the amendment
under Article 123 of the constitution, after the Islamic Consultative Assembly
approved it on November 2 and the Guardian Council endorsed
it on November 8.

With the latest approval, Iran’s legislative and oversight
bodies have now launched the implementation phase of the currency change,
pending the Central Bank’s announcement of the full mechanisms and timeline for
rollout.

On October 5, the Islamic Consultative Assembly voted to
amend the Monetary and Banking Law to eliminate four zeros from the currency,
converting every 10,000 current rials into one new rial while retaining “rial”
as the official name.

Iran’s move to remove four zeros from the rial comes after
years of severe currency depreciation driven by US sanctions, collapsing oil
revenues, high inflation, and a sharp fall in purchasing power that has pushed
citizens toward dollars, gold, and real estate.

The Central Bank has faced persistent difficulty curbing
currency speculation and stabilizing the market, as years of sanctions on oil
sales and financial channels continue to pressure the rial.

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