What exactly did Iran approve?

The cabinet approved a bill to remove four zeros from the currency and begin a redenomination process. It now goes to parliament and then the Guardian Council before implementation.

What will the conversion be?

1 new unit will equal 10,000 current rials, effectively deleting four zeros from prices and banknotes.

Will the unit be called ‘rial’ or ‘toman’?

The 2025 draft points to keeping the name rial with a qeran (1/100) subunit; earlier plans used toman. The final law will set the official label.

Does this reduce inflation?

No. Redenomination simplifies accounting and cash handling but does not by itself curb inflation.

What happens to existing banknotes?

They will remain legal tender during a transition period and be exchangeable at the fixed 10,000:1 rate once new notes are introduced.

Iran approves currency redenomination: fewer zeros, same problems (for now) - GlobeNote

Cabinet green-lights a plan to chop four zeros off the rial. Think: 10,000 old rials = 1 new unit. Accountants rejoice; inflation yawns.

In short

On 11–12 August 2025, Iran’s government approved a bill to remove four zeros from the national currency. The working outline keeps the name “rial” and revives a qeran/gheran subunit (1 new rial = 100 qerans), with a transition period in which old and new units coexist. The plan still needs a full parliament vote and Guardian Council sign-off before notes change hands. International and local outlets concur on the “10,000 old = 1 new” conversion; the exact branding (new rial vs. toman) will be locked by the final law.

What this actually means at the till

It’s a unit change, not a magic spell. A sandwich that costs 2,500,000 rials today would list at 250 new rials after redenomination. Prices don’t fall; the number of digits does. Expect dual pricing during rollout, new banknotes later, and a long tail where old notes remain legal tender and are swapped out gradually.

The moving pieces (and why headlines disagree)

Two parallel stories explain the muddle. In 2020 lawmakers approved a switch to toman (1 toman = 10,000 rials) on paper, but implementation stalled. In August 2025 the new cabinet-backed draft points to keeping “rial” as the unit, worth 10,000 current rials, split into 100 qerans. Same math, different label. The final statute will decide which name ends up on the note.

Tech Specs (draft outline)

Conversion: 1 new unit = 10,000 current rials (remove four zeros)
Unit / subunit: Proposed: keep rial; subunit qeran/gheran (1/100). Earlier plan: switch unit name to toman.
Status: Cabinet approved → needs full parliament vote → Guardian Council approval → Central Bank rollout plan
Transition: Dual display (old + new) for a period; old notes remain legal tender until phased out
Motivation: Simplify accounting, reduce digit overload, and cut printing/handling complexity (not an anti-inflation tool by itself)
Banknotes: New designs to follow after law; existing rials to co-circulate and be redeemable at face conversion

Collector angle: watch for transitional overprints, dual-unit banknotes, and early “new unit” trial runs in high-use denominations. These windows can be short—and very collectible.

Quick Answers

Is the unit changing to “toman” or staying “rial”?

Draft 2025 plan: keep rial and revive qeran (1/100). Earlier 2020 plan: use toman. Final law decides the label; the math (÷10,000) is the same.

Will this cut inflation?

No. It’s a redenomination, not monetary tightening. Benefits are clarity and lower handling costs, not price stability.

When do new banknotes arrive?

Only after the bill passes parliament and the Guardian Council, then the Central Bank prints and phases in notes. Expect months to years for full changeover.

What happens to old rials?

They stay legal tender during a transition and can be exchanged at the fixed conversion (10,000:1). Dual pricing helps during the swap.

How will shops display prices?

Expect dual display (old + new) at first, then a steady move to the new unit once circulation is broad enough.

Highlights Facts • Collector Tips • Did You Know?

Facts & Curiosities

Four zeros are set to go: 10,000 old rials = 1 new unit.
Cabinet approved in Aug 2025; law still pending parliament + Guardian Council.
Draft keeps the name rial with qeran as 1/100.

Collector Tips

Watch for first-issue notes in the new unit and any dual-unit legends.
Keep examples of both pre- and post-redenomination high denominations for contrast sets.
Document receipts with dual pricing—great provenance pieces later.

Did You Know?

Iran mulled redenomination for years; parliament okayed a version in 2020 but it stalled.
Qeran/gheran is a historic subunit being revived at 1/100.
Redenomination helps UX; only reforms tame inflation.

Iran approves currency redenomination: fewer zeros, same problems (for now)

What this actually means at the till