Understanding Iranian Currency: Rial vs Toman, Banknotes, and Practical Tips

When visiting Iran or dealing with Iranian transactions, one of the most confusing aspects for foreigners is understanding the country's currency. You may hear people talk about Toman, but see prices in Rial. This blog will help you make sense of it all — from understanding the difference between the two to recognizing real banknotes and making transactions with ease.

1. Rial (IRR) vs Toman – What’s the Difference?

Iran’s official currency is the Rial (IRR), and this is what you will see printed on banknotes, used in bank systems, and displayed on official documents. However, in everyday conversation and pricing in markets, shops, and taxis, Iranians mostly use the term Toman.

1 Toman = 10 Rials

So if a vendor tells you something costs "20,000 Toman", it actually means 200,000 Rials. It’s simply a shortcut. The use of Toman is so common that even many Iranians forget it’s not the official currency!

Why this dual system exists:

The Rial has weakened significantly over the past decades, making everyday transactions with so many zeros impractical.
Toman has historically been used since the Qajar era and is deeply rooted in the culture.
Using Toman is simpler and more convenient, especially for oral communication.

Important Tip: When you see a price in Iran, always ask whether it's in Rial or Toman, especially in places where price tags are handwritten or verbal communication is used. Usually, if it looks like a smaller number, it's in Toman — but always confirm!

2. Iranian Banknotes and Coins

Banknotes in Circulation (as of 2025):

Here are the common banknotes you’ll see in Iran:

1,000 IRR – very rare, not used anymore
2,000 IRR - very rare, not used anymore
5,000 IRR - Almost not used anymore
10,000 IRR
20,000 IRR
50,000 IRR(also known as 5 Toman and widely used)
100,000 IRR(also known as 10 Toman and widely used)
500,000 IRR (also known as 50 Toman and widely used)
1,000,000 IRR (also known as 100 Toman)

Recently, newer notes have also been introduced with large Toman values clearly printed for easier understanding by the public:

10,000 Rials = 1,000 Toman banknote

500,000 IRR note has "50 Toman" printed prominently in Persian.
1,000,000 IRR note says "100 Toman".

These newer notes are part of Iran's long-term plan to officially switch to Toman as the national currency, but the change is still in process.

How to Identify the Value of Banknotes:

Pay attention to:

Numerical Digits: Most notes show the value in both Persian and English numerals.
Language: The Persian side usually shows "تومان" or "ریال".
Color and Size: Each denomination has a unique color and design, and higher-value notes are usually larger.
Security Features: Watermarks, metallic threads, color-changing ink, and microtext are standard on higher-value notes.

50,000 Rials = 5,000 Toman banknote

3. Iranian Coins – Rare and Mostly Symbolic

Coins are still minted and occasionally used, though most people avoid them due to inflation. You might find:

5,000 IRR coin
1,000 IRR coin

In practice, these are mostly used in rural areas or as change in small shops. Locals may round up or down instead of dealing with coins.

4. Practical Examples for Travelers

Let’s go through some real-world scenarios to help you navigate Iranian money:

✔ Scenario 1 – Taxi Fare:

A driver says: "Panjsad Toman". That means 500 Toman = 5,000 Rials.

✔ Scenario 2 – Street Vendor:

A snack seller /Shop owner shows you a sign(digit) on calculator: “15,000”. If no currency is mentioned, assume it’s Toman. So the cost is 150,000 Rials.

✔ Scenario 3 – Bank ATM:

ATMs only deal in Rials. If you withdraw 2,000,000 IRR, that equals 200,000 Toman.

5. Payment and Pricing Habits in Iran

Iranians use mobile banking and debit cards for most transactions. Physical cash is mostly used in bazaars, taxis, or small shops.
Price tags in malls and restaurants are often in Toman, even though the receipt may be in Rial.
Online platforms like DigiKala or Snapp show prices in Toman.

Note for Visitors: You cannot use international credit cards in Iran due to sanctions. You’ll need to carry local cash or use Iranian debit cards issued to tourists (available via some travel agencies).

6. What About the Currency Redenomination Plan?

The Iranian government has approved a plan to officially change the currency from Rial to Toman and drop four zeros. This means:

10,000 Rials → 1 New Toman

But as of 2025, this plan is not yet fully implemented. People already use Toman informally, so this change aims to formalize the practice and simplify the system. Until the official switch is complete, always double-check whether a price is in Toman or Rial.

7. Summary Table – Understanding Prices in Iran

What You Hear	Meaning	Value in Rial
1,000 Toman	Common phrase	10,000 IRR
50,000 Toman	Usually means a product price	500,000 IRR
1 million Rial	High-value cash note	100,000 Toman

8. Final Tips Before You Use Money in Iran

Always confirm if the price is in Rial or Toman — especially with taxis, street vendors, and handwritten notes.
Carry smaller denominations for ease of use in local places.
Familiarize yourself with Persian numerals to read price tags and signs.
Use tourist money cards if available, to avoid carrying large amounts of cash.

Understanding the currency system in Iran may seem tricky at first, but once you get used to converting between Rial and Toman and recognizing the notes, it becomes second nature. Whether you're bargaining at a local bazaar or paying for dinner, this guide will help you avoid confusion and confidently handle your money.

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