Iran prepares currency reform: four zeros will disappear from the rial – what does it mean.

Iran is preparing for changes in its currency system, namely planning to remove four zeros from the national currency. Currently, banknotes in denominations of 1,000 to 100,000 rials are in circulation, but after the reform, the unit of currency will be equivalent to 10,000 rials in current expression.

This was reported by the Financial Times.

New Currency Reform in Iran

Under the influence of international sanctions, geopolitical factors, and the loss of stability of the national currency, the Iranian rial has lost its value compared to the dollar. This has led to the devaluation of the national currency, which in 2025 was worth only a fraction of a dollar.

The currency reform is expected to simplify financial transactions, reduce the costs of printing money, and ease accounting, the FT report states.

The Iranian Parliament has introduced a bill for the redenomination of the rial, which has received support and is now awaiting consideration in the Parliament and the Guardian Council – the constitutional body of the country.

The Situation with the Iranian Rial Exchange Rate

According to Forbes, the Iranian rial is one of the cheapest currencies in the world. For example, to purchase 1 hryvnia, 1,010.07 rials are needed, while 1 dollar is equivalent to 42,125 rials. The situation on the black market is even worse.

The reasons for the devaluation lie in historical events such as the 1979 revolution, the absence of foreign investors, the nuclear program, and the conflict with Iraq.

Mid Forex's forecast shows that the exchange rate of the Iranian rial may rise to 45,000 rials per 1 dollar in the medium term, and in 10 years to 48,000 rials per 1 dollar.

What is Important for Ukrainians to Know

With the increasing value of the dollar against the euro, Ukrainians should expect changes in exchange rates. It is recommended to avoid exchanging old currency for damaged banknotes and to buy fresh ones instead.

Additionally, it is important to monitor the exchange rates of the dollar and euro to maintain economic stability and avoid financial risks.