The Guardian Council has approved a major Iran rial reform, allowing authorities to remove four zeros from the national currency. This reform marks a significant step toward stabilizing the economy and modernizing the country’s financial system.
Hadi Tahan Nazif, the Guardian Council’s spokesperson, announced the approval at a press briefing in Tehran on Saturday. He explained that the council reviewed the bill passed by Parliament and confirmed that it complies with both Sharia law and the Constitution. Consequently, the government can now begin implementing the redenomination process.
Under the new law, the Iran rial reform will unfold gradually over several years. Authorities will take a phased approach to avoid confusion and maintain economic stability. They plan to provide guidance to citizens and businesses throughout the transition.
The idea of removing zeros from the rial is not new. Authorities first proposed the reform 34 years ago, yet successive administrations did not fully pursue it. The government formally approved a bill on this initiative in 2019, and Parliament endorsed the framework in the same year. However, previous attempts stalled due to administrative challenges and delays.
Recently, momentum for the reform accelerated. In early August, Parliament’s Economic Committee introduced amendments, which the full Parliament approved on October 5. This measure aims to reduce inflation, strengthen the rial’s value, and simplify daily financial transactions.
Economists and financial experts have praised the reform. They argue that removing zeros will make pricing clearer, simplify accounting, and ease cash handling. Furthermore, they predict the reform could boost public confidence in the national currency, which has weakened under inflationary pressure. Businesses, banks, and financial institutions will adjust their systems and processes to support the new currency structure.
Tahan Nazif emphasized that the Guardian Council’s approval ensures legal compliance. In addition, authorities will develop technical systems and public communication campaigns to educate citizens during the transition. They also plan to coordinate closely with banks and businesses to avoid disruption.
The reform carries social implications as well. Citizens may need time to adjust to the new currency format. However, simplifying the rial could make daily transactions more convenient and improve the public’s perception of money. Experts also suggest that this change may stimulate domestic trade and enhance financial planning.
Looking ahead, the government will monitor implementation closely. Officials will gather feedback and adjust processes when necessary. They aim to maintain stability and prevent confusion throughout the reform period.
The Guardian Council’s approval of Iran rial reform represents a milestone in the country’s monetary policy. By removing four zeros, the government strengthens the currency, simplifies transactions, and builds trust in the financial system. Moreover, this reform reflects a long-term commitment to modernizing Iran’s economy while balancing legal, social, and economic considerations.