Iran’s currency has decreased a lot in the value that Tehran plans to cut four zeros from RIAL

“Today’s meeting has agreed to the Economic Committee on the name” RIAL “as the national currency, in addition to removing four zeros,” said the ICANA website on Parliament, quoting Shamsidin Hoseni, Chairman of the Committee.

Under the proposed system, one RIAL is equivalent to 10,000 at the current value and divided into 100 Gherrans, according to ICana.

The proposed Redenomation was first offered in 2019, but then the shelf was done. The current draft law will have to pass a parliamentary vote and gain approval from the trustee council, which is a reduced body with veterinary legislation.

It was not immediately clear when the parliamentary vote will occur.

In May, the Iranian central bank ruler, Mohammad Reza Farrazin, said that he will follow up the plan, noting that the Iranian Real “has no favorable picture” in the global economy.

The move comes at a time when Iran is facing deepening economic challenges, including fugitive inflation, sharply low currency, and the long impact of international sanctions.

As of Sunday, RIAL was circulated by about 920,000 to the US dollar in the street market, according to local media and Bonbast, which monitors informal exchange rates.

In practice, the Iranians have long abandoned RIAL in daily transactions, using Toman instead. One Toman is equal to 10 Rials.

The Iranian economy has long been subjected to severe pressure due to the imposition of comprehensive US sanctions since Washington’s withdrawal of 2018 from a rating nuclear deal during the first term of US President Donald Trump in his position.

Upon returning to his post in January, Trump re -revived the “maximum pressure” sanctions campaign on Tehran.

In June, Iranian lawmakers approved the new Minister of Economy Ali Madanzadeh after his predecessor, Abdanasser Hemati, in a vote without confidence in his failure to address the country’s economic problems.

In the same month, Israel launched an unprecedented attack on the Iranian nuclear and military infrastructure, and began a fatal war for 12 days.