Tehran: President of Iran Masoud Pezeshkian has signed a decree on implementing the law on the denomination of the country’s currency (rial), Trend reports via the Iranian Presidential Administration. The decree marks a significant step in Iran’s monetary policy, aiming to simplify financial transactions by removing four zeros from the national currency.

According to Trend News Agency, the Iranian Parliament adopted the law on November 2, and it received approval from the Iranian Constitutional Council on November 5. The new regulation means that the current 10,000 rials will be equivalent to one rial and 100 girans. During the transition period, the currency will be referred to as both “rial” and “current rial,” and this phase is expected to last for a maximum of three years.

The Central Bank of Iran (CBI) is tasked with executing the necessary steps to facilitate a smooth transition. This includes the collection of existing banknotes and coins. After the three-year transition, the currency will be officially known as “rial.”

The CBI will prepare the regulations necessary for the law’s implementation within the next three months. An official announcement regarding the law’s entry into force is expected within two years, ushering in a new era for Iran’s monetary system.