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Sign in to searchIran’s Currency Reform Plan and Its Economic Significance
In 2025, Iran’s parliament approved a long-pending currency reform plan aimed at stabilising the economy, simplifying transactions, and restoring public confidence in the national currency. Under this reform, four zeros will be removed from the Iranian rial, converting 10,000 old rials into 1 new rial, while retaining the same currency name. The new rial will be subdivided into 100 smaller units called qerans.
The reform reflects Iran’s response to chronic inflation and long-term currency devaluation. Inflation stood at around 38.7% in May 2025, severely eroding purchasing power. Over decades, the rial has lost value due to structural economic weaknesses, post-revolution disruptions, war-related damage, and recurring international sanctions. By 2025, the exchange rate had fallen to around 1,150,000 rials per US dollar, forcing citizens and businesses to operate with extremely large numerical values in daily transactions.
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Iran's 2025 currency reform removes four zeros from the rial, converting 10,000 old rials to 1 new rial. Learn how this redenomination addresses inflation, currency devaluation, and economic stability challenges.
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