Iran to Cut 4 Zeros From Its Currency Amid Chronic Inflation and US Sanctions

Iranian lawmakers have reportedly approved a plan to slash four zeros from the national currency, the rial, which has been falling sharply in value amid chronic inflation and the U.S. sanctions. The official currency will also be replaced. Economists are skeptical about how the changes will affect the Iranian economy.

Cutting 4 Zeros From the Rial

The Iranian parliament has reportedly passed a bill to allow the government to cut four zeros from the national currency, the rial. The country’s weak currency and persistently high inflation have led to street protests since late 2017. According to Iran’s Students News Agency ISNA, a major news agency in the country:

The bill to remove four zeros from the national currency was approved by lawmakers.

Ali Rabiei, a spokesperson for the government of Iran, said in a tweet, “Eliminating the four zeros is a necessary action to simplify financial transactions.” According to reports, the Guardian Council of the Constitution is expected to…