Iranian Rial

• Country: Iran
• Currency: Rial
• Alias: Iranian rial
• ISO 4217 CODE: IRR/364
• Symbol: Rls

The Iranian rial serves as the national currency for the Islamic Republic of Iran, a Middle Eastern nation of some 70 million people. The rial replaced an earlier form of currency, the toman, at a conversion rate of one rial for 10 tomans. Even though tomans are no longer in circulation, Iranians still frequently quote prices in terms of tomans. As is the case with many of its neighboring Persian Gulf states, Iran derives a significant portion of its national wealth from the export of crude oil, which helps to sustain the rial’s value.

Background of the Iranian Rial

Formerly known to most westerners as Persia, Iran’s first settlements date back to the third millennium BC. The modern-day Islamic Republic of Iran was born out of a 1979 revolution led by the religious cleric Ayatollah Khomeini. The revolution was soon followed by a bloody, 8-year war with neighboring Iraq. Soon after, Iraq suspended diplomatic relations with many western nations.

Tehran’s decision to isolate itself from much of the world means that its economy is now based purely on cash. Travelers will find that credit cards and traveler’s checks are not accepted anywhere, which means that rials, U.S. dollars or euros are required to conduct business. This self-imposed isolation from world banking systems essentially prevents any meaningful foreign investment in the country.

Oil exports continue to generate most of Iran’s revenues, but widespread corruption exists, and the U.S. trade embargo has further stifled economic growth. Iran’s desire to establish nuclear power generation has caused international concern in recent years, and the Iranian government’s frequent denouncement of Israel has led to tensions with many of its neighbors and western nations.

The rial is divided into 100 dinars, but the smallest denomination of coin minted by the Central Bank of the Islamic Republic of Iran is 1 rial. Denominations for coins are IR1, IR2, IR5, IR10, IR20, IR50, IR100, IR250. Denominations below IR50 are exceedingly rare, and IR1 coins are extremely rare. All coins contain Farsi and Arabic markings, making them difficult for westerners to differentiate. Denominations for banknotes are IR100, IR200, IR500, IR1000, IR2000, IR5000, and IR10000. Notes contain Farsi and English markings.