Parliamentary panel gives conditional backing for removing rial zeros
Iranian Parliament's Economic Committee has conditionally approved removing four zeros from the national currency (rial) and the possibility of changing the national currency unit, the committee's spokesman said on Monday.
Hakem Mamkan, announcing the above, stated, “The Central Bank of Iran has proposed the removal of four zeros from the national currency in order to preserve its standing in international forums and to facilitate calculations and accounting within government agencies." In an interview with ISNA, the parliamentarian said that on Sunday, the parliament’s committee reviewed objections raised by the Guardian Council – a body empowered to vet legislation – to the bill amending the country's Banking and Monetary Law. “The session was attended by Mohammad Reza Farzin, Governor of the Central Bank of Iran; Abbas Moradpour, Deputy Minister of Economic Affairs and Finance for Banking Affairs; and representatives from other responsible organizations," he added.
The spokesperson for Parliament's Economic Committee stated, "Considering the enactment of laws subsequent to the bill amending Article One of the Banking and Monetary Law (which pertains to the 12th government [2017-2021]), this matter has inherent objections. Nevertheless, the Economic Committee agreed with the general principle of removing four zeros from the national currency, and there are even whispers about the possibility of changing the national currency unit. Changes must now be made to the details of the bill to avoid conflict with other recently enacted laws."
The lawmaker reiterated, "The Central Bank has proposed the removal of four zeros from the national currency in order to preserve the national currency's standing in international forums and to facilitate calculations and accounting within organizations; however, this matter has no relation to inflation."
Mamkan added the plan also "has opponents who argue that some economic systems remove zeros from their national currency only when fundamental and infrastructural economic issues have been resolved and stability achieved, enabling a sort of economic surgery. However, our country is grappling with inflation, has not yet reached economic stability, and the necessary infrastructure has not been laid." Recent data indicates an increase, with the rate reaching 38.90% in April 2025, up from 37.10% in March 2025.
The spokesperson concluded, "Ultimately, it was decided that the Economic Committee will conduct negotiations with the Guardian Council. If the council agrees, the changes made to the bill will be beyond the Guardian Council's objections and will not conflict with existing laws. In that case, the committee will proceed to review the Guardian Council's objections. Otherwise, the entire bill will be set aside, and the government must submit a new bill to Parliament."
"The government and the Central Bank insist on this bill and the removal of four zeros from the national currency. Therefore, the Economic Committee will hold off on examining the specifics of the bill until the Guardian Council announces its opinion and the matter is resolved," he said.