Iran’s Parliament's Economic Commission has conditionally agreed to remove four zeros from the national currency and potentially change the country's monetary unit, according to the commission's spokesman.

Hakem Mamakan said the Central Bank of Iran proposed removing four zeros from the national currency to preserve the currency's dignity in international forums and facilitate calculations and auditing in government agencies, ISNA reported on July 28.

The government and Central Bank insist on implementing the bill and removing four zeros from the national currency. The Economic Commission will not examine details until the Guardian Council announces its position and determines the matter's status.

The Economic Commission reviewed objections from the Guardian Council regarding the monetary and banking law amendment bill with Central Bank Governor Farzin and Deputy Finance Minister Moradpour in attendance.

The bill to amend Article One of the monetary and banking law originates from the twelfth government and was reviewed during the tenth and eleventh parliamentary terms before being finalised in the eleventh parliament and referred to the Guardian Council.

Mamakan explained that whilst the Economic Commission agreed in principle with removing four zeros from the national currency, the bill has fundamental defects due to laws enacted after its drafting. He noted there are suggestions about potentially changing the national currency unit entirely.

The spokesman said changes must be made to the bill's details to avoid conflicts with recently approved laws.

The Central Bank proposed the four-zero removal to maintain the national currency's dignity internationally and facilitate calculations in government agencies, emphasising this has no connection to inflation.

However, the proposal faces opposition from those arguing that economic systems typically remove zeros from their currency only after resolving fundamental infrastructure issues and achieving economic stability to perform "economic surgery."

Critics contend that Iran continues struggling with inflation and has not achieved economic stability or established the necessary infrastructure for such a monetary reform.

The commission will consult the Guardian Council; if it agrees, any amendments must go beyond the council’s objections and align with existing law, after which the commission will review the council’s comments. If not, the entire bill will be shelved and the government will have to submit a new one.

If the council agrees, the commission will review the Guardian Council's objections; otherwise, the entire bill will be set aside, and the government must submit a new bill to parliament.

Earlier, at the opening of the Monetary and Banking System Conference, Central Bank Governor Mohammad Reza Farzin confirmed the bank will pursue the four-zero removal plan this year.

In 2019, the previous Rouhani administration attempted to remove the zeros but faced large objections from MPs and other authorities in the country.