WANA (Aug 11) – The prospect of removing zeros from the national currency — and the resulting overnight 10,000-fold increase in its nominal value — has once again resurfaced in Iran’s economic discourse.

 

The Iranian government spokesperson announced that in the cabinet meeting held on Sunday, August 10, 2025, the bill to “remove four zeros from the national currency” was approved by a majority vote after discussion and review.

 

Back in May, Mohammadreza Farzin, the Governor of the Central Bank, described the removal of four zeros as one of the year’s key initiatives, calling it essential for improving the international image of the rial.

A currency dealer holds a U.S one-dollar bill and Iranian rial as the value of the Iranian Rial drops, in Tehran

A currency dealer holds a U.S one-dollar bill and Iranian rial as the value of the Iranian Rial drops, in Tehran, Iran, March 26, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Economist Mehdi Darabi believes that removing zeros from the currency can be justified in two scenarios: first, when accompanied by economic reforms and a meaningful reduction in inflation expectations, and second, when hyperinflation has led to excessively large monetary figures.

 

“At present, we have neither significant economic reforms, nor a reduction in inflation expectations, nor a case of hyperinflation,” Darabi said, stressing that the bill is unnecessary. He noted that the government has already sent the proposal to parliament.

 

The removal of zeros from Iran’s national currency — and the change from rial to toman — is not a new idea, with a history of at least three decades in the country’s economic planning.

 

While experts generally view its impact as minimal, the allure of seeing the currency’s nominal value increase 10,000-fold overnight makes the proposal appealing to both the public and senior officials.