Iran to Drop Four Zeros from Currency in 2025 Currency Overhaul

Iran will remove four zeros from its rial banknotes next year, officially adopting the toman as its currency unit, the country’s central bank chief announced Monday.

The long-delayed currency overhaul comes as the rial struggles against historic devaluation, with exchange rates exceeding 1 million rials per US dollar in March. Recent market rates have shown extreme volatility. Currency traders in Tehran reported exchange rates of 853,500 rials per dollar in early May.

“This year, we will definitely pursue the removal of zeros,” said Mohammad Reza Farzin, Central Bank Governor, during an economic policy meeting in Tehran.

Iranian citizens have informally used the toman for years, routinely dropping a zero when discussing prices. Under the reform, 10,000 rials will officially equal one toman.

Economic analysts question whether the reform addresses Iran’s fundamental economic challenges. “The problem is not the four zeros, but the persistent inflation and monetary mismanagement,” economist Jamshid Asadi said in an earlier analysis.

Parliament initially approved the currency transition in 2020, estimating implementation costs around $150 million. Officials expect a two-year period when both denominations will circulate simultaneously.

Farzin described 2025 as “a year of transformation” with broader banking reforms underway.

Iran’s economy continues to struggle under international sanctions. Government statistics indicate approximately one-third of Iranians live below the poverty line, with widespread unemployment affecting the population.

The value of Iranian currency has deteriorated dramatically over time. Banknotes worth significant sums before the 1979 revolution now hold fractional value.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Gold Could Easily Double Again in This Run!? | Dan Wilton – First Mining Gold

$3300 GOLD: Every $100 Rise in Gold Means Pure Profit |  Ross Beaty – Equinox Gold

First Majestic Silver: The Santo Nino Discovery

Recommended

Emerita Resources Intends To Appeal Exploitation License Granted To Minera Los Frailes

First Majestic Silver: The Santo Nino Discovery

Related News

Iran Reports Warship ‘Incident’: Sahand Frigate Capsizes, Crew Injured

An Iranian warship capsized at the port of Bandar Abbas on Sunday, resulting in multiple...

Monday, July 8, 2024, 08:44:00 AM

Iran To Revisit Hengam Gas Project With Oman, Says State News Agency

Iran is looking into reviving a 2004 gas project with Oman, according to the country’s...

Monday, May 23, 2022, 11:09:00 AM

Saudi Arabia Tells US That Iran is Planning to Attack the Kingdom ‘Within 48 Hours’

Washington is currently on high alert after Saudi Arabia shared intelligence with US government officials...

Wednesday, November 2, 2022, 01:50:01 PM

Iranian Interference Suspected in Canadian Campus Protests, Cybersecurity Firm Reveals

Cybersecurity firm XPOZ has uncovered evidence suggesting Iranian involvement in anti-Israel protests at McGill University...

Monday, August 5, 2024, 03:20:00 PM

U.S. Slams Financial Door on Iran: $6 Billion Frozen Amid Hamas Fears

The United States, in collaboration with Qatar, has halted Iran’s access to $6 billion in...

Thursday, October 12, 2023, 02:50:12 PM