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Iran Currency : Navigating the Maze of Confusing Rials.
Iran is known for many beautiful things, but their currency is renowned as the world’s most confusing currency! As per the Currency definition, “a system of money in general use in a particular country.” – Sounds pretty simple. Right?
What could be a puzzling thing about Iran’s money system, you may think- Hold your breath; what you are going to read will surprise you and definitely help you when you travel to Iran – Because I have listed solutions to each of the confusions!
There are many local customs a traveller in Iran must follow. Following them for a few weeks isn’t like solving a calculus problem. With some research, you can sway like a boss through Iran without getting puzzled by Iran’s currency system.
Welcome to Iran – the land of friendly people, stunning landscapes, kaleidoscopic architecture and the most confusing currency.
Table of Contents
Planning a trip to Iran? Check our Complete guide to Travelling in Iran that got a load of tips on getting visa, finding accommodations, planning your itinerary and everything else a first timer to Iran must know.
Confusion 1 :
Iran’s currency name is similar to many other Middle Eastern Country’s currency!
The currency name “Rial” is also used in Saudi Arabia, Yemen, Qatar, and Oman. But don’t be fooled by the name – They may share a word, but that’s where the similarity ends. Iran’s official currency is the Rial, with the currency code IRR.
Confusion 2 :
Iran’s currency has dual names!
Iran doesn’t print two currency bills – But they have two different names! Regarding everyday transactions, you’re more likely to hear Iranians talking about the Toman instead of the Rial.
What Is the Rial to Toman conversion?
Toman is the Rial with one less zero. So, to convert Rials to Tomans, simply remove the last zero and voila! Easy as pie, or easy as pulling a zero with your finger!
But why all this drama? Because Iran’s currency comes with a lot of zeroes!
To simplify these long digits on paper money, locals use another term, “Toman”, for the same paper currency. 100 Rial=10 Tomans. So removing the last Zero from the currency makes it Toman from Rial.
Common Banknotes in Iran are 10,000 Rials (1000 Toman), 20,000 Rials (2000 Toman), 50,000 Rials (5000 Toman), 100,000 Rials (10.000 Toman), 500,000 Rials (50.000 Toman), and 1.000. 000 Rials (100.000 Toman). The few coins in use include 1.000, 2.000 and 5.000 Rials.
Confusion 3 :
Locals omit more zeroes when they tell you the price!
How do local Iranians use Tomans and Rials?
You may be thinking, what is so difficult about it when someone says 5 Toman, I must give them 50 Rials. But, unfortunately, it isn’t that simple.
On top of using a different name for an official currency, Locals omit all zeros and say 5 Toman. That means 5000 Tomans=50K Rials! That is why it is the most confusing currency in the world.
The cafe and restaurant cards won’t mention if they are mentioning the prices in Rials or Toman. So every time, you must ask the owner or waitperson to confirm if it is Toman and if they have missed out on any Zeroes from Toman – Don’t worry; Iranians are friendly and always help tourists with a smile on their faces!
Confusion 4
US Dollars are accepted in most countries for currency exchange. But not in Iran – Thank god we took Euros to Iran instead of USD.
What currency should I take to Iran?
Euros are most preferred for currency exchange in Iran. And USD is most disliked! So the preference order to carry currency to Iran goes like – Euro, British Pounds, UAE Dihrams and USD! Euros get better rates than everything else!
Confusion 5
One thing we didn’t know before going to Iran is- The currency exchange rate you see online is much lower than what you actually get in Iran’s market.
At Tehran Heritage Hostel in 2020, a backpacker from Hong Kong was leaving for home in the next three hours. He wanted to sell his left-out Iranian Rials and offered us a conversion rate of 145,000 for a Euro, while the internet rate was 48,900.
This was too confusing, and we rejected his offer, thinking he might be trying to sell us fake bills. But when we met Arya from Daric Pay Travel Card, we understood that the currency exchange price online versus the actual price in the Iran market is significantly different. So never believe in the international exchange rates shown on the internet. Check Iran market value here before exchanging currency.
The fact that 1 Euro equals 48,900 itself indicates the weakness of Iran’s currency. Additionally, the actual rate further weakens their currency value.
Where can I exchange currency in Iran?
When you look at bank exchange rates online for USD to IRR, you see a 5-digit number. But the value is much higher when you check in local markets and currency exchange places. So go for a reliable local business recommended by previous travellers or hostel/hotel owners.
Why Is Iran’s Rial So Weak?
According to the foreign exchange gurus, the Rial’s decline is a result of a few factors, including the unrest in Iran, its growing isolation due to Western sanctions over its human rights track record, and even the use of Iranian-made drones by Russia in Ukraine. Who knew that politics and economics could be such a lethal combo?
The cost of living for tourists is low in Iran generally. For example, a nice long warm jacket cost us 10 Euros (1350000 Rial) in Tehran Bazaar. A similar quality jacket costs me around 35-40 Euros in India or on Amazon. But for the people of Iran, cost of living is really high.
Confusion 6
There are plenty of ATMs nationwide – But you must have the right card to withdraw money from Iran’s ATMs!
Can I use Visa or MasterCard in Iran?
With so many sanctions and international politics, neither your international bank cards work at ATMs, nor any seller accepts your Amex/Visa/ Master cards for payment in Iran.
This leaves you exchanging a big chunk of foreign currency and carrying lots of cash. Since the Iranian Rial’s value is weak, you will get millions of money in your pocket. This makes you feel as if you have a fat purse. But don’t worry, Iran’s very own Debit card can be purchased by tourists, and you can just flash it almost everywhere.
Which Travel Card works in Iran for foreign tourists?
Apply for a Daricpay Travel card, which stops you from carrying a fat purse and swiping this Iran’s own card for all your payments, even at Bazaar’s small shop. With this travel Card, you can draw money from ATMs too. The ATMs work for Iran bank cards perfectly.
Even bazars and petty shops selling smaller things will also accept Iran Travel Cards.
So how to deal with Currency confusion in Iran?
With time, locals must have observed foreign travellers struggling; they now handle it more easily. Whenever we stood there confused while paying – If we must pay 13k Rials or Toman, locals took out the bills from their pocket and asked us to pay the same bill.
If they don’t have that particular denomination, they ask you to show your money and take the actual cash. Iranians are honest, so they won’t snatch extra money from that pile of currency you gave him. But it is always better to be careful while doing so.
If they don’t have a currency, they type on the calculators usually – Make sure to ask if it is Toman or Rial.
Before you give your card for swiping, make it clear how much they will swipe. You may often not receive an SMS or update after money is deducted from your travel card. They may not cheat you, but you shouldn’t stand there wondering if he is swiping for 100000 rials (100 Toman)
So did we clear all your confusions regarding Currency of Iran? Let us know in the comment below.
