TEHRAN : Iran’s parliament has approved a long-discussed plan to remove four zeros from the rial, its national currency, as part of efforts to address decades of high inflation and make everyday financial dealings easier.

Under the new system, 10,000 rials will become one new rial, and both versions of the currency will circulate together for up to three years before the old notes are phased out. The Central Bank has been given two years to fully introduce the new currency.

The plan still requires final approval from the Guardian Council and the President. Officials say the reform will make prices more manageable, restore trust in the national currency, and reduce the burden of handling large numbers in daily transactions.

Iran’s rial has steadily lost value since the 1979 Islamic Revolution, weakened by years of economic sanctions, poor fiscal management, and persistent inflation that has eaten into household incomes.

In practice, most Iranians already use the “toman,” which equals ten rials, when buying goods or discussing prices. The redenomination will formalise what has long been part of everyday life, aligning official currency use with how people already trade.

Economists say the decision could help tidy up the financial system, but warn it will not solve deeper problems such as inflation and unemployment. Still, many see the move as a small but hopeful step towards economic stability and a sign that the government is trying to reset public confidence in the rial.