On Sunday, Iran’s Islamic Consultative Assembly voted to remove four zeros from the national currency through a draft amendment to the Monetary and Banking Law.

The law stipulates that every 10,000 current Iranian rials will be converted into one new rial, while retaining the name "rial" as the official currency of the country.

The move aims to simplify financial transactions and reduce the impact of the severe inflation that Iran has been suffering from for years.

It is noted that the law to remove the zeros also requires approval from the Guardian Council before it can take effect.

This step comes after years of inflation and the deterioration of the rial’s value against foreign currencies due to economic sanctions, with the U.S. dollar now worth more than 900,000 rials on the parallel market.