What Is Iran Currency Called? Unraveling The Rial & Toman Mystery

Dr. Malvina Swaniawski 22 Jun 2025

For anyone planning a trip to Iran or simply curious about its financial landscape, one of the most immediate questions that arises is: "What is Iran currency called?" The answer, while seemingly straightforward, carries a unique layer of complexity that often puzzles foreigners. While the official legal tender is the Iranian Rial, daily transactions and conversations among Iranians frequently revolve around another term: the Toman. Understanding this dual system is not just a matter of academic interest; it's crucial for navigating financial interactions smoothly, avoiding costly errors during currency exchange, and ultimately enhancing your experience in the country.

This guide aims to clarify the nuances of Iran's money system, providing a comprehensive overview of the Iranian Rial, its historical journey, the prevalent use of the Toman, and practical tips for handling money in Iran. We'll delve into the official denominations, the role of the Central Bank, and what the future might hold for Iran's currency, ensuring you're well-equipped with the knowledge needed to understand this fascinating aspect of Iranian life.

Table of Contents:

The Official Currency: The Iranian Rial (IRR)
A Rich History: The Journey of the Rial
- Earliest Introduction and Initial Circulation
- Replacement and Reintroduction
The Central Bank and Currency Issuance
The Unofficial Yet Dominant Toman
- Rial vs. Toman: The Core Difference
- Why the Toman Persists in Daily Life
Denominations and Practicalities: Banknotes and Coins
Navigating Currency for Travelers: Essential Tips
Future of Iran's Currency: Digital Rial and Revaluation
Understanding Exchange Rates: IRR to USD and Beyond

The Official Currency: The Iranian Rial (IRR)

When you ask "What is Iran currency called?" the definitive and official answer is the Iranian Rial. As the official legal tender in Iran, the Iranian Rial is formally recognized by the Iranian government. This means it is the currency you are legally obliged to use for all financial obligations within the country, including paying for goods, services, taxes, and debts. Its ISO 4217 code is IRR, and its Unicode symbol is ﷼. Every banknote and coin issued by the Central Bank of the Islamic Republic of Iran is denominated in Rials, making it the bedrock of the nation's financial system. While its official status is clear, its practical application in daily life, as we will explore, often takes a backseat to the informal Toman.

A Rich History: The Journey of the Rial

The history of Iran's currency is as intricate as its ancient civilization, marked by periods of introduction, replacement, and reintroduction. Understanding this historical context sheds light on the current dual-currency system and provides a deeper appreciation for what is Iran currency called today.

Earliest Introduction and Initial Circulation

The Iranian Rial was not a new invention in the 20th century. In fact, it was a currency in use in what is now the nation of Iran (formerly Persia) as far back as 1798. Initially, it was introduced as a coin worth 1,250 dinars. During this period, the Toman was also in circulation and was divided into 8 Rials, each of which was further divided into 10,000 dinars. This early period showcases a complex monetary system where the Rial played a role, albeit not always as the sole or primary unit.

Replacement and Reintroduction

The Rial's journey wasn't continuous. In 1825, the Rial was no longer in circulation and was replaced by the Qiran. The exchange rate at that time was 1 Qiran = 10 Rials. For a little over a century, the Qiran served as Iran's monetary unit. However, the nation of Iran eventually returned to the Rial as its official currency in 1932. This reintroduction saw a 1:1 exchange rate of Qirans for Rials, effectively restoring the Rial to its prominent position. This historical shift cemented the Rial as the modern official currency, replacing the Toman which had been the currency of Iran until 1932. This historical background is essential for understanding the evolution of what is Iran currency called and why the Toman still holds cultural significance.

The Central Bank and Currency Issuance

The Central Bank of the Islamic Republic of Iran holds the exclusive authority to issue banknotes and coins in Iran. This centralized control ensures the integrity and stability of the nation's currency. The banknotes are denominated in values from 100 to 20,000 Rials, while coins are issued in denominations ranging from 5 to 500 Rials. These official denominations are what you will find printed on all physical currency. The Central Bank's role is paramount in managing the money supply, controlling inflation, and maintaining the value of the Iranian Rial. Any future changes, such as the introduction of a digital Rial or a revaluation, would solely fall under their purview, underscoring their critical function in Iran's financial architecture.

The Unofficial Yet Dominant Toman

Perhaps the most confusing aspect for foreigners asking "What is Iran currency called?" is the pervasive use of the Toman. Iran is unique in having two currency systems for the same money: the Rial, which is the official currency system, and the Toman, which is the informal and most common term in the financial affairs of Iranians. This duality is not just a linguistic quirk; it's deeply ingrained in daily life and can lead to significant misunderstandings if not properly understood.

Rial vs. Toman: The Core Difference

The fundamental difference between the Rial and the Toman is straightforward: one Toman is equivalent to ten Rials. This simple conversion factor is the key to navigating Iran's dual currency system. While all banknotes are printed in Rials, prices are often quoted and discussed in Tomans. For example, a shopkeeper might tell you an item costs "50 Tomans," which means 500 Rials. This informal convention is so deeply ingrained that during 99% of daily conversations about money or prices, Iranians use the Toman. This makes understanding the conversion crucial for anyone engaging in transactions, especially for foreign tourists planning their trip, to avoid overpaying or confusion.

Why the Toman Persists in Daily Life

The persistence of the Toman, despite the Rial being the official currency, is largely due to historical habit and convenience. The Toman was the official currency until 1932, and even after the Rial's reintroduction, people continued to use the Toman for simplicity, essentially "dropping a zero" in their mental calculations. This informal preference has become a deeply embedded cultural norm. As a general guide, written prices (on signs, menus, official documents) are typically given in Rials, but prices quoted in conversation are almost always in Tomans. So, if you're asking a taxi driver for a fare or buying something in a bazaar, expect the price to be stated in Tomans. This distinction is vital for anyone trying to figure out what is Iran currency called in practical terms and how to manage their money effectively.

Denominations and Practicalities: Banknotes and Coins

Understanding the physical forms of what is Iran currency called is essential for practical transactions. The Iranian currency notes are made up of a wide range of denominations, reflecting the economic conditions and the value of the Rial. You will find banknotes in values of 100, 200, 500, 1000, 2000, 5000, 10,000, 20,000, 50,000, and 100,000 Rials. As of 2024, the lowest value banknote you are likely to encounter in Iran is 50,000 Rials, which is equivalent to 5,000 Tomans. Coins are also in circulation, issued in denominations ranging from 5 to 500 Rials, though due to the Rial's lower value, smaller denomination coins are less frequently used in daily transactions. When handling money, always double-check whether the price quoted or displayed is in Rials or Tomans, especially given the significant difference (a factor of ten) between the two. This vigilance will help avoid confusion and ensure fair transactions.

Navigating Currency for Travelers: Essential Tips

For foreign tourists planning their trip, understanding the currency in Iran is crucial. The unique dual system of Rial and Toman can be a source of confusion, but with a few practical tips, you can navigate it smoothly. Firstly, always clarify whether a price is in Rials or Tomans. A simple question like "Rial or Toman?" (Rial ya Toman?) can save you from potential misunderstandings. Remember, one Toman equals ten Rials. Secondly, when exchanging currency, be aware that the most popular Iranian Rial exchange rate is the IRR to USD rate. It's advisable to exchange money at official exchange offices (Sarraafi) rather than unofficial channels to ensure fair rates and avoid counterfeit currency. Thirdly, carry small denominations of banknotes as change can sometimes be an issue, especially in smaller shops or taxis. Finally, while credit cards are not widely accepted due to international sanctions, some tourist-oriented establishments might accept them or offer alternative payment methods. Always plan to use cash for most of your transactions. Understanding how Iran's money functions will make your trip smoother, help avoid costly errors during currency exchange, and ultimately enhance your travel experience.

Future of Iran's Currency: Digital Rial and Revaluation

The landscape of what is Iran currency called is not static; it is subject to ongoing discussions and potential reforms. One significant development is the Central Bank's announcement regarding the "Digital Rial," which is a type of currency intended to modernize Iran's financial infrastructure. While details are still emerging, a digital Rial could streamline transactions and potentially offer greater transparency. More significantly, there has been a long-standing proposal to formally redenominate the currency, effectively making the Toman the official unit and shaving off four zeros from all denominations. This means that what is currently 10,000 Rials would become 1 Toman. Such a change would simplify calculations and align the official currency with the informal usage that has dominated daily life for decades. While this revaluation has been discussed for years, its implementation would represent a monumental shift in Iran's monetary system, impacting everything from pricing to banking. If this change occurs, it will officially resolve the long-standing question of "what is Iran currency called" by making the Toman the sole and recognized legal tender, simplifying transactions for both locals and visitors alike.

Understanding Exchange Rates: IRR to USD and Beyond

For anyone dealing with the Iranian Rial, particularly travelers or businesses, understanding current exchange rates is paramount. Our currency rankings consistently show that the most popular Iranian Rial exchange rate is the IRR to USD rate. Due to economic sanctions and internal factors, the Iranian Rial has experienced significant fluctuations against major world currencies like the US Dollar, Euro, and British Pound. It's important to note that there can be a considerable difference between the official exchange rate set by the Central Bank and the market rate available at exchange offices. For practical purposes, especially for tourists, the market rate is what you will typically encounter. Websites and apps dedicated to currency conversion can provide up-to-date rates. Always check the current exchange rates before converting your money to ensure you get the best value. This vigilance is crucial for managing your budget effectively and understanding the true purchasing power of what is Iran currency called.

The ISO Code and Symbol

Every national currency is assigned a unique international standard code and often a symbol for easy identification and global financial transactions. For the Iranian Rial, its ISO 4217 code is IRR. This three-letter code is universally recognized in financial markets and is used for currency trading, banking, and international reporting. In addition to the code, the Iranian Rial also has a distinct Unicode symbol: ﷼. While less commonly seen in everyday use compared to the Toman, these identifiers are crucial for official documentation and international financial operations, reinforcing the formal identity of what is Iran currency called on a global scale. Knowing these codes can be particularly useful for anyone involved in international trade or finance related to Iran.

In conclusion, while the official answer to "what is Iran currency called" is unequivocally the Iranian Rial, the reality of daily life in Iran introduces the pervasive and informal use of the Toman. This unique dual system, where one Toman equals ten Rials, is a historical legacy that has become deeply embedded in the culture. For travelers and anyone engaging with Iran's economy, understanding this distinction is not just a matter of trivia but a practical necessity to avoid confusion and ensure smooth financial transactions. From its rich history dating back to 1798, its reintroduction in 1932, to the Central Bank's exclusive authority in issuing banknotes and coins, the Iranian Rial remains the backbone of the nation's financial system. As discussions about a digital Rial and a formal revaluation to the Toman continue, the landscape of Iran's currency may evolve, but the importance of knowing both its official name and its common usage will remain paramount. So, the next time you encounter prices in Iran, remember to clarify: Rial or Toman? This simple question will be your key to unlocking the nuances of Iran's fascinating monetary system.

Did this article help clarify the mystery of Iran's currency for you? Share your thoughts or any experiences you've had navigating the Rial and Toman in the comments below! For more insights into travel and culture, explore our other articles.

Iran says no to nuclear talks during conflict as UN urges restraint

Gossip Pulse