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Iran Planning To Ax Four Zeros From Currency

A redenomination of the Iranian currency has been discussed for years as its value has plummeted. (file photo)

Iran's government has approved a plan to slash four zeros from the national currency, the rial, as the country tries to cope with high inflation.

The measure was announced by government spokesman Ali Rabiei following a cabinet meeting on July 31.

The plan requires support from parliament and the Guardians Council.

A redenomination of the rial has been discussed for years as its value has plummeted, particularly since the United States last year pulled out of a 2015 nuclear deal between Tehran and world powers and reimposed crippling sanctions that have led to a shrinking economy.

The rial has plunged from 32,000 to $1 at the time of the nuclear accord to around 120,000 rials to the U.S. currency these days.

In April, the International Monetary Fund (IMF) said it expected Iran's economy to shrink by 6 percent this year and inflation could reach 40 percent, as the country struggles with the impact of the U.S. sanctions.

With reporting by Bloomberg and AP