Iran plans rial overhaul amid skyrocketing inflation

The Iranian government has approved a draft law to redenominate the national currency, the rial, citing its sharp loss of value.

The Iranian government spokesperson, Fatemeh Mohajerani, said the measure aims to alleviate psychological pressure on citizens and facilitate a series of structural reforms, Caliber.Az reports per foreign media.

"To reduce psychological strain and implement a set of structural reforms, the government has endorsed this draft legislation," Mohejjerani stated.

The official highlighted that prolonged inflation has rendered the rial largely ineffective as a medium of exchange.

The draft law now awaits approval from both the parliament (Majlis) and the Guardian Council.

Earlier this month, Iran’s Ministry of Petroleum reported that the country’s underground resources are valued at approximately $27.5 trillion, underlining the economy’s substantial untapped potential despite persistent currency challenges.

By Aghakazim Guliyev