So, you’re looking into the currency of Iran. Maybe you’re planning a trip to Tehran’s Grand Bazaar, or perhaps you’re just tracking the global economy. Honestly, it’s one of the most confusing systems in the world.
If you look at a banknote, it says Iranian Rial (IRR). But if you talk to a local at a juice stand, they’ll ask for Tomans.
Wait, what?
Basically, the currency of Iran is the Rial, but the "Toman" is how people actually think and trade. Think of it like a nickname that everyone agreed was better than the real name. Except this nickname involves moving decimal points in your head while trying not to get ripped off.
The Currency of Iran: Rial vs. Toman
Here is the deal. Officially, the currency of Iran is the Rial. On paper, at the bank, and on your credit card statement (if you could actually use one there—more on that later), it’s all Rials.
However, because the Rial has lost so much value over the years due to inflation and sanctions, the numbers got way too big. It’s hard to say "one million four hundred thousand" every time you buy a sandwich.
So, Iranians use the Toman.
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1 Toman = 10 Rials.
It sounds simple, right? Just chop off a zero. But when you’re standing in a crowded market and someone says "20 Tomans," they might mean 20,000 Tomans (which is 200,000 Rials). Or they might mean 20 million Tomans. Context is everything. You've really got to pay attention to the zeroes.
Why the Dual System?
Inflation. That’s the short answer.
Back in the 1970s, the dollar was worth about 70 Rials. As of early January 2026, the open market rate has plummeted to roughly 1.47 million Rials per US Dollar. When a currency drops that far, the "official" unit becomes a bit of a joke for daily life.
The government actually passed a law recently to fix this. They are officially removing four zeros from the currency. The plan is to eventually make the "New Rial" worth 10,000 "Old Rials." But like most things in bureaucracy, this is a slow-motion transition. For now, you’re stuck with the old paper and the mental math.
The Reality of Cash in Iran
If you’re traveling to Iran, your Visa or Mastercard is basically a shiny piece of plastic. Thanks to international sanctions, Iran is cut off from the global banking system.
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You cannot walk up to an ATM in Isfahan and pull out money with your Chase or Barclays card.
How to Get Money
- Bring Hard Cash: You need crisp, clean US Dollars or Euros.
- The "Sarrafi" is Your Friend: These are official exchange shops. Don't go to the bank; their "official" rate is usually much worse than the "free market" rate you’ll find at a Sarrafi.
- Iranian Gift Cards: Since you can't use your own bank, you can actually buy a local "Tourist Card" at some banks or exchange centers. You load it with cash, and then you can swipe it like a debit card. It's way easier than carrying a literal brick of 100,000-Rial notes.
Current Exchange Rates (January 2026)
It’s volatile. I can’t stress that enough. While the Central Bank of Iran might claim one rate, the "street rate" is what matters.
| Currency | Market Rate (Approx. Jan 2026) |
|---|---|
| 1 US Dollar | 1,470,000 Rials |
| 1 Euro | 1,720,000 Rials |
| 1 British Pound | 1,940,000 Rials |
Prices for food are jumping. In 2025 alone, the Rial lost nearly 45% of its value. For locals, this is a nightmare. For a traveler with "hard" currency, Iran becomes incredibly cheap, but it’s a bittersweet reality when you see how much people are struggling to buy basic meat or rice.
The "Zero" Confusion
There’s been a lot of talk lately on social media about the currency of Iran hitting "zero."
Is it worthless? Not literally.
What happened is that some digital currency converters couldn't handle the number of zeros and started showing $0.00. It’s a glitch, but it’s also a symbol of how much the currency has collapsed.
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Tips for Staying Sane
- Always ask: "Toman or Rial?" Before you hand over money, double-check.
- The "Thumb Rule": If you’re looking at a banknote, cover the last zero with your thumb. That’s the price in Tomans.
- Download an App: Use an app like Bonbast or AlanChand to see the real-time street rate. Don't rely on Google's default converter; it often shows the "official" rate which nobody actually uses.
- Negotiate: In the bazaar, the price is rarely the first number mentioned.
Actionable Insights for Handling Iranian Currency
If you are dealing with the currency of Iran today, stop looking at the official government figures. They don't reflect what things actually cost in Tehran or Mashhad.
First, if you're traveling, bring more cash than you think you need. Since you can't wire money to yourself, being short on cash is a major problem.
Second, keep your bills organized. You will likely be carrying millions of Rials. Separate them into "spending" and "savings" pockets so you don't accidentally hand over a 1,000,000-Rial note (which is actually a "Cheque" note) for a bottle of water.
Third, be aware of the "New Rial" notes. The government has started printing notes where four zeros are pale or "hidden" to prepare people for the redenomination. Don't let it confuse you—the value is the same for now.
The situation is changing fast. With the recent ending of some currency subsidies by President Masoud Pezeshkian's government, prices for bread and medicine are expected to shift again soon. Stay updated by checking local market trackers daily.