Iran’s currency has plunged so much in value that Tehran plans to chop off four zeros from the rial

Morteza Nikoubazl—NurPhoto via Getty ImagesThe economic commission of Iran’s parliament revived long-delayed plans on Sunday to cut four zeros from the country’s plunging currency, as part of efforts to simplify financial transactions. “Today’s meeting of the economic commission apved the name ‘rial’ as the national currency, as well as the removal of four zeros,” said the parliament’s website ICANA, quoting Shamseddin Hosseini, the commission’s chairman

Under the posed system, one rial would be equivalent to 10,000 at the current value and subdivided into 100 gherans, according to ICANA

The current bill will have to pass a parliamentary vote and gain the apval of the Guardian Council, a body empowered to vet legislation

It was not immediately when the parliamentary vote would take place

In May, Iran’s Central Bank Governor Mohammad Reza Farzin said he would pursue the plan, noting that the Iranian rial “does not have a favourable image” in the global economy

The move comes as Iran faces deepening economic challenges, including runaway inflation, a sharply devalued currency, and the longed impact of international sanctions

As of Sunday, the rial was trading at around 920,000 to the US dollar on the street market, according to local media and the Bonbast website that monitors unofficial exchange rates

In practice, Iranians have long abandoned the rial in everyday transactions, using the toman instead

One toman equals 10 rials

Upon returning to office in January, Trump revived his “maximum pressure” sanctions campaign on Tehran

In June, Iranian lawmakers apved new economy minister Ali Madanizadeh after his predecessor, Abdolnaser Hemmati, was ousted in a no-confidence vote for failing to address the country’s economic woes

The same month Israel launched an unprecedented attack on Iran’s nu and military infrastructure, beginning a deadly 12-day war

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