The Iranian government has approved a plan to take four zeros off the national currency in a bid to curb the tide of liquidity and boost the rial again.
According to IRIB, the move was approved during the cabinet session on Wednesday.
The proposal should now go to the parliament to become law.
Further details will be released later by Central Bank of Iran Governor Abdolnaser Hemmati.
CBI has vowed to put every effort into action to make the redenomination of the rial, which currently stands at around 120,000 to the US dollar.
The plan to remove four zeros from the rial has been on the government agenda since it was proposed in the past by Central Bank of Iran as part of a broader plan to revisit the monetary system.
According to the government website dolat.ir, the measure calls for fundamental change to the national currency, including changing the name of the monetary unit from the official rial to the popularly used ‘toman’. It stipulates change in the nominal value and the face of bank notes and coins.
“The new national currency toman will be defined to substitute the rial. Each toman will be equivalent to 10,000 rials,” the website said.
Despite the fact that rial is the official currency, people use toman in informal transactions (1 toman = 10 rials).