How Money Works in Iran:
If you're planning a trip to Iran, understanding the local currency, how payments work, and what to expect when it comes to cash and cards is crucial. In this guide, we'll walk you through everything you need to know about money in Iran, including which currency to bring, how to handle payments, and whether international credit cards can be used.
1. The Currency in Iran
The official currency of Iran is the Iranian Rial (IRR), but you'll often encounter prices and payments in Toman. It's essential to understand the difference between these two terms to avoid confusion.
Rial (IRR) vs. Toman
- Rial (IRR): The official currency in Iran. One Rial is equal to ten Tomans.
- Toman: Commonly used in everyday life in Iran for pricing. When locals refer to prices, they usually say Toman instead of Rial. For example, when you see a price of 10,000 IRR, it’s usually referred to as 1,000 Toman.
For simplicity, always think of prices in Toman, as it’s the term you’ll hear most often.
2. What Currency Should You Bring?
Since Iran has its own currency (IRR/Toman), it’s not possible to use foreign currencies like US Dollars or Euros directly in shops, restaurants, or markets. Here’s what you should do:
- Bring US Dollars or Euros: These are the easiest currencies to exchange in Iran. You can exchange these currencies for Rials at exchange offices, banks, or some hotels.
- How Much to Bring: It’s advisable to bring enough cash for your entire stay, especially since access to international banking services in Iran is limited. A good rule of thumb is to bring enough for your daily expenses and some extra for emergencies.
3. How Much Cash Should You Bring?
The amount of cash you need depends on your travel plans, but here are some guidelines to help you budget:
- For Budget Travelers: You might spend around $30-50 USD per day for accommodations, food, and transport.
- For Mid-Range Travelers: Expect to spend around $50-100 USD per day if you're staying in nicer hotels, eating out at good restaurants, and using taxis.
- For Luxury Travelers: If you're looking for luxury hotels, private transportation, and high-end dining, budget $150+ USD per day.
4. Currency Exchange in Iran
Exchanging foreign currency is easy in Iran. Here’s where and how you can do it:
Current Exchange Rates:
As of the latest data, the exchange rate for Iranian Rial (IRR) can fluctuate significantly due to the country’s economic conditions.incorrect Typically information availabe online is, 1 USD equals around 42,000 IRR WHICH IS NOT CORRECT .
It’s important to note that the official rate provided by Iran's central bank may differ from the market rate, which you will find at exchange offices and banks. Here’s an example of how exchange rates may vary Exchange rate as of February 5, 2025
- 1 USD = 920,000,000 IRR market rate at exchange offices
Keep in mind that exchange rates fluctuate, so it's a good idea to check current rates before you exchange your money. You can find up-to-date rates from iranian local exchaneg offices
Exchange Offices (Bureaux de Change)
- Exchange Offices: These are the most common places to exchange foreign currency. You’ll find them in major cities like Tehran, Isfahan, and Shiraz, as well as at airports.
- Rates: Always compare rates at a few different exchange offices to ensure you're getting a good deal.
Banks
- Banks: While you can exchange money at banks, the process might take longer, and the rates may not be as favorable as exchange offices.
Hotels
- Hotels: Some hotels offer currency exchange services, but their rates may not be the best. It's typically better to avoid exchanging large sums at hotels.
5. Payment Methods in Iran
Cash is king in Iran. Most shops, restaurants, taxis, and other services will expect payment in cash, so it’s essential to always carry some cash with you.
Payment via Bank Cards
International Credit/Debit Cards: Unfortunately, due to Iran’s banking restrictions, international credit and debit cards (Visa, MasterCard, etc.) are not usable. So, you cannot directly use your foreign cards for payments in Iran. This is because Iran is cut off from the global financial system due to international sanctions.
6. How to Handle Payments
Cash or local debit cards!
CASH:You will need to bring the total amount of your expenses in cash and exchange it as needed throughout your trip. Alternatively, a few private companies offer local debit cards for travelers, but these come with additional charges.
Important Note:Honest Guide Iran does not take any responsibility for potential fraud, overcharging, or incorrect exchange rates provided by these companies. Always exercise caution when using such services.
7. Are Credit Cards Usable in Iran?
Unfortunately, international credit cards are not usable in Iran. As mentioned earlier, due to economic sanctions, Iran is cut off from the international financial system, and this prevents the use of foreign credit cards like Visa, MasterCard, and American Express. Therefore, it’s important to make alternative payment arrangements before traveling.
8. Tips for Handling Money in Iran
- Carry Small Denominations: It’s easier to pay in smaller amounts, especially in local markets and small shops, so always have some small bills with you.
- Double-Check Prices: Sometimes, prices can be displayed in Rials or Tomans, and it can be confusing. Double-check and confirm with the vendor before paying.
- Avoid Carrying Large Sums: While it's important to carry enough cash for your stay, try not to carry large amounts of money at once. Use a money belt or a secure bag to carry cash safely.
- Exchange Rates: Be aware of the official exchange rate and the rates offered by local currency exchange services to ensure you're not overpaying.
9. Can You Use Debit or Credit Cards for Online Purchases in Iran?
No, foreign debit or credit cards cannot be used for online purchases in Iran due to the country’s exclusion from the international banking system. If you need to make purchases online, you may need to rely on local alternatives or find ways to arrange payments with a local bank account.
10. Conclusion: Managing Money in Iran
Traveling to Iran requires preparation, especially when it comes to money. Since international credit cards are not accepted, it’s essential to bring cash in US Dollars or Euros and exchange it locally for Rials or Tomans. Always carry cash for small transactions and confirm prices beforehand to avoid misunderstandings.
By following these tips, you'll ensure smooth transactions and avoid financial issues while exploring this fascinating country.
