Iran currency has plunged into value so much that Tehran plans to cut four zeros from the Rial

“The today’s meeting of the Economic Commission approved the name” Rial “as a national currency, as well as the abolition of four zeros,” said the website of the Parliament, Icana, quoting Shamseddin Hosseini, President of the Commission.

As part of the system proposed, a Rial would be equivalent to 10,000 with the current value and subdivided into 100 gherans, according to Icana.

The proposed redenomination was mentioned for the first time in 2019 but then set aside. The current bill will have to adopt a parliamentary vote and obtain the approval of the Guardian Council, an organization authorized to examine the legislation.

It was not immediately clear when the parliamentary vote would take place.

In May, the governor of the Iranian central bank, Mohammad Reza Farzin, said that he would continue the plan, noting that the Iranian Rial “does not have a favorable image” in the world economy.

This decision comes as Iran faces economic challenges, including Fugon inflation, a strongly devalued currency and the prolonged impact of international sanctions.

On Sunday, the Rial was negotiated at around 920,000 to the US dollar on the street market, according to local media and the Bonbast website which monitors unofficial exchange rates.

In practice, Iranians have long abandoned the Rial in daily transactions, using the Toman instead. A toman is equivalent to 10 rials.

The Iranian economy has long been subjected to strong intensities due to the scalabing American sanctions since the withdrawal of Washington in 2018 from a historic nuclear agreement during the first mandate of American president Donald Trump.

When he returned to the post in January, Trump relaunched his “maximum” sanctions campaign on Tehran.

In June, Iranian legislators approved the Minister of New Economy, Ali Madanizadeh, after his predecessor, Abdolnaser Hemmati, was ousted during a vote without confidence not to attack the country’s economic misfortunes.

The same month, Israel launched an unprecedented attack on Iranian nuclear and military infrastructure, starting a 12 -day deadly war.