Iran has set a definitive timeline for removing four zeros from its national currency, with new money to be introduced from 2027 and old banknotes completely phased out by 2030, Asr Iran reported on August 12.

Meisam Zohoryan, a member of parliament's economic commission, said the monetary reform will begin following approval of amendments to Article One of the Monetary and Banking Law, with implementation occurring in two phases over five years.

The first phase will see new currency introduced from 2027 (Iranian year 1406), whilst the second phase from 2030 (Iranian year 1409) will see complete removal of old banknotes and the four zeros from the national currency.

Zohoryan emphasised that the reform aims to simplify daily calculations rather than address underlying economic fundamentals. "The purpose is not to change the real variables of the country's economy," he said.

"Simply removing four zeros will not reduce inflation or increase economic growth, but it addresses problems people have with calculations that create many difficulties in reading numbers," the MP explained.

The reform follows widespread public adoption of simplified currency references, with Iranians commonly saying "five toman" instead of "50,000 rials" in everyday transactions.

The parliamentary economic commission voted to retain "rial" as the currency unit despite public preference for "toman," which is more commonly used in daily commerce. Zohoryan said he personally supported "toman" but accepted the majority decision.

The legislation addresses objections raised by the Guardian Council regarding earlier attempts to implement the currency reform dating back to the tenth parliament. The council's concern related to determining the rial's value based on commitments to the International Monetary Fund.

Implementation will include a five-year transition period with special branches designated to allow citizens to exchange old currency for new notes. The reform aims to reduce calculation errors in daily transactions, including bank messaging and number writing where zeros are sometimes added or omitted incorrectly.

Zohoryan stressed that currency reform must be accompanied by complementary measures including fiscal discipline, banking system reform and other fundamental economic policies to be effective.