Iran’s long-standing plan to slash four zeros from its national currency is once again advancing through parliament, as the Economic Commission of the Islamic Consultative Assembly (Iranian parliament) approved a revised version of the bill on August 3.

However, MPs opted to retain the 'rial' as the official currency unit, rejecting the government's proposal to rename it ‘toman,’ as was initially announced as part of the plan.

According to Shamseddin Hosseini, head of the Economic Commission, the bill – originally introduced by the Rouhani administration as part of broader monetary reform – required revision following the enactment of the new Central Bank law in 2023, which rendered several articles of the old monetary and banking law obsolete.

“The key structure remains intact,” Hosseini told reporters. “The new currency unit will be worth  IRR10,000, effectively removing four zeros from the current denomination. One new rial will be subdivided into 100 ‘qerans’, reviving a historic unit as the fractional denomination.”

The initial government draft had proposed switching the official currency name to the more commonly used ‘toman’ and using ‘qeran’ as the subunit. However, lawmakers cited Article 58(a) of the Central Bank Law, which explicitly defines ‘rial’ as the legal tender, to maintain continuity.

The commission also addressed concerns from the Guardian Council regarding Iran’s obligations to the International Monetary Fund (IMF). Hosseini assured that the re-denomination would not affect Iran’s international financial commitments, as the existing law governing IMF membership remains in force.

Although the bill is still pending a full vote in the Majles (parliament), latest decision reaffirms Iran’s determination to simplify monetary transactions, ease accounting burdens, and restore symbolic credibility to the currency, albeit without a name change.

The redenomination initiative, first floated in 2008 and formally submitted in 2019, had repeatedly stalled due to political uncertainty and economic volatility. If passed, implementation would take place gradually, involving dual-currency circulation, updated banknotes, and public awareness campaigns.