The central bank has begun studies to remove four zeros from the national currency, the Far news agency reported
Mahmoud Bahmani, the Central Bank governor, said the plan will be proposed to the cabinet by the next six months.
"If the plan is approved by the cabinet and confirmed by the Monetary and Credit Council", the central bank will start gathering bank notes and publish new ones, Bahmani told a news conference on Tuesday.
This is while the Finance and Economy Minister, Shamseddin Hosseini, said on Sunday the Central Bank aims to slice three zeros off the end of the currency in the current calendar year which started on March 21.
The central bank "will remove three zeros from the national currency this year on the condition that the prerequisites are achieved," Hosseini said.
Bahmani said studies by the central bank indicate that taking four zeros will have positive effects on the national economy. He also dismissed arguments that it will lead to an increase in inflation.
The move falls within the subsidy reform plan.
The subsidy reform plan envisages a cutting of subsidies on fuel, electricity, and certain goods over the course of five years. It is the largest economic plan Iran has ever implemented.
Bahmani said in April 2010 that the subsidy reform plan would add the inflation rate by maximum 15 percent.