Effectively, it means that four zeroes have been lopped off the existing currency.
1 toman is worth 10,000 rials.

The change of a currency happens when a simple re-valuation is not enough.

In this case US and UN sanctions have crippled the Iranian economy. Add to that coronavirus and the impact it has had on both the country and the economy of Iran and one can understand why Iran acted so drastically.

The toman was the official Iranian currency in the1890’s.

Over the years after the rial became the currency, the toman remained a denomination within the rial currency. It was a denomination one level higher than a rial.

Consider this another indication of Iran collapsing under pressure.

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