Iran keeps rial as national currency, announces redenomination plan

Iranian President Masoud Pezeshkian has issued a decree concerning the redenomination of the national currency, the president’s administration reported via Iranian media.

“In order to implement Article 123 of the Constitution of the Islamic Republic of Iran, Masoud Pezeshkian has notified the Central Bank of the entry into force of the amendment to paragraph (a) of Article 58 of the Central Bank Law (providing for the denomination of the national currency),” the administration said in a statement.

Under the approved plan, the rial will remain Iran’s national currency, as before. Earlier proposals to adopt the tuman — an unofficial but widely used monetary unit — did not gain support. The rial will be subdivided into 100 kerans, a smaller unit carrying the historical name of the national currency used in Iran during the 19th and early 20th centuries.

The transition period to the newly approved currency will span three years, during which both old and new banknotes will remain valid for transactions.

The redenomination comes amid high inflation and a weakening rial. According to Mohammad Farzin, head of the Central Bank of Iran, the annual inflation rate has reached 38.9%. In September-October 2025, the rial hit a record low against the U.S. dollar, with the unofficial exchange rate reaching roughly 1.17 million rials per dollar.

By Tamilla Hasanova