14:54 - 6.10.2025

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October 6, Fineko/abc.az. The Parliament of the Islamic Republic has approved a legislative act providing for the removal of four zeros from banknotes - the new monetary unit will be correlated with the old one as 1:10,000.

ABC.AZ informs that since the beginning of the 21st century, the Iranian rial has demonstrated steady devaluation amid sanctions pressure from Western states, primarily the U.S., related to development of Tehran's nuclear program. For example, in 2002, when Washington first made accusations of creating nuclear weapons, exchange rate of the national currency collapsed from 1,700 to almost 8,000 rials per dollar.

By 2012, the dollar reached 12,000 rials, and in 2018 it reached 128,000. At the moment, the US currency is traded at 1.15 million rials, and inflation, approaching 50%, does not allow us to predict stabilization.

Despite this, authorities expect that denomination will not only simplify monetary transactions, but also reduce inflation expectations of the population.