A Guide to Iranian Currency and Exchange Rates

 

The Iranian currency, the Iranian Rial (IRR), has been a topic of significant interest and concern, both domestically and internationally, due to its volatile exchange rate and the economic challenges facing Iran. As of 2025, the exchange rate of the Rial continues to be influenced by a complex interplay of domestic policies, international sanctions, and global economic conditions.

If you’re planning a trip to Iran, understanding the local currency and exchange rates is essential. Iran has a unique dual exchange rate system, which can be confusing for travelers. Here’s everything you need to know about Iranian currency, where to exchange money, and how to get the best rates.

 

The Iranian Rial: A Brief Overview

The Rial has been Iran’s official currency since 1932, replacing the Qiran. However, due to high inflation and the devaluation of the Rial over the years, Iranians often use the term “Toman” in daily transactions. This dual usage can sometimes cause confusion, especially for those unfamiliar with the local context.

 

Iranian Currency: Rial vs. Toman

The official currency of Iran is the Iranian Rial (IRR), but locals commonly use the Toman in daily transactions. The difference is simple:
• 1 Toman = 10 Rials
• If someone says “100,000 Tomans”, they mean “1,000,000 Rials.”

Always confirm whether prices are in Rials or Tomans to avoid confusion.

 

Iran’s Dual Exchange Rate System

Iran has two exchange rates:
1. Official Government Rate – This is set by the Central Bank of Iran and is mainly used for official transactions. It is much lower than the free market rate.

2. Market (Open) Rate – This is the rate used in local currency exchanges (Sarafi) and is significantly higher than the official rate. Tourists and businesses use this rate.

Since the government-controlled rate is not available for regular transactions, visitors should always check the free market exchange rate when exchanging money.

 

Black Market and Parallel Exchange Rates

Due to strict currency controls and limited access to foreign currencies, a significant black market for foreign exchange has emerged. The black market rate often diverges sharply from the official rate, reflecting the true demand and supply dynamics.

 

 

Iran Recent Trends

In recent years, the Rial has experienced significant depreciation against major currencies like the U.S. Dollar (USD) and the Euro (EUR). For example, in 2021, the exchange rate was approximately 250,000 IRR per USD, but by March 2025, it has surged to over 920,000 IRR per USD, reflecting the ongoing economic challenges.

 

Where to Exchange Money in Iran?

• Official Exchange Offices (Sarafi) – The best place to exchange money is at licensed exchange offices found in Iran main tourist cities like Tehran, Shiraz, Isfahan, Kashan, Yazd, Tabriz and Mashhad. Avoid banks, as they use the government rate.
• Airports – There are exchange offices at major airports, but their rates are usually not the best.
• Hotels & Unofficial Exchanges – Some hotels may offer currency exchange, but their rates are often less favorable.

 

Can You Use Credit Cards in Iran?

International credit and debit cards do not work in Iran due to sanctions. Travelers must carry cash in USD or Euros and exchange it as needed. New banknotes (not old or damaged bills) get better rates.

 

Tips for Exchanging Money in Iran

• Check the Latest Market Rate – Exchange rates fluctuate daily. Use currency exchange websites or ask at different Sarafis for the best rate.
• Bring Small Bills – Iranian ATMs don’t work with foreign cards, so exchange enough money to cover expenses.
• Use Trusted Exchange Offices – Avoid street money changers to prevent scams.

 

Important  Note for Changing your money in Iran

If you are traveling the classic route of Iran or passing through the main tourist cities of Iran, you do not need to exchange a large amount or all of the money you have brought with you into Iranian Rials. Note that due to the weakness of the Iranian currency against other world currencies, the volume of Iranian Rials you receive in exchange for euros or dollars will be very large and it will be very difficult for you to transport it during your trip to Iran. It is recommended that you go to the exchange offices in the market or tourist shopping centers every few days and exchange your money. Or, depending on your travel plan, consider several points to exchange your money in large cities from the beginning and convert part of your money each time. If you are traveling with a guide, ask him to go to the city centers or main Bazaars of Iran and convert your money back into rials.

 

Final Thoughts

Iran’s currency system might seem complicated at first, but with proper planning, exchanging money is easy. Always use the free market rate, exchange at reputable Sarafis, and carry enough cash since international cards won’t work. If you travel with a guide or you have a tour operator,

Note: Exchange rates are subject to rapid change, and the information provided here is based on the latest available data as of March 2025. For the most accurate and up-to-date rates, consult reliable financial sources.