Iranian rial: history, patterns and exchange rate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The official currency of Iran is the local rial. It consists of one hundred dinars, but this unit has not been used much lately. This is due to the high level of devaluation of the national currency. In the global financial system, the Iranian rial received the designation IRR, code 364, and on the territory of Iran - IR. At the moment, banknotes are in circulation in denominations of ten thousand, five thousand, two thousand, one thousand, two hundred and one hundred. In addition, coins in denominations of two hundred and fifty, one hundred, fifty, twenty, ten and five are used.

History of the Iranian Rial

The rial was the official currency of Persia from 1798 to 1825. In Iran, this currency began to be used in 1932. Since then and until now, the Iranian rial has been the national currency of this state. Before the implementation of the reform of the monetary system in Iran in 1932, the official currency was fog, which is equal to ten thousand dinars. It should be noted that even after almost 90 years, prices for most goods and services are indicated precisely in fogs. Often this fact confuses many tourists visiting this country.

Immediately after the introductionrial as a monetary unit in Persia (present-day Iran), coins were used in circulation, which were equated to 1250 dinars and accounted for 1/8 of the fog. In 1825, the issue of the rial was discontinued in Persia, and fog became the main currency, which remained so until 1932.

Stages of rial money circulation

After the introduction of the rial as an official unit in 1932, Bank Melli Iran issued denominations of five, ten, twenty, fifty, one hundred and five hundred rials. One thousand denominations appeared in circulation in 1935. After 16 years, the Iranian leadership decided to put into use a banknote in denominations of two hundred rials, and in 1952 banknotes of five and ten thousand appeared. The gradual devaluation and inflation of the national currency made it necessary to abandon the use of some small denominations of banknotes.

Thus, in 1940, the Central Bank of Iran withdrew from circulation a denomination of five rials, and in 1960 a banknote of ten. Since 1993, the Iranian rial has become an almost fully convertible currency. It should be noted that the long-term trade embargo and sanctions by Western developed countries against Iran have led to a significant devaluation and depreciation of the national currency.

Appearance of banknotes

During its history, the Iranian rial has changed its appearance several times. It would be appropriate to emphasize that the old banknotes issued between 1982 and 1989 are still taking part incirculation and are withdrawn from use as they wear out. The obverse of almost all banknotes contains a portrait of Ayatollah Khomeini. The exception is denominations of one hundred, two hundred and five hundred rials. It should be noted that there is no date of issue on Iranian rial banknotes. Another important feature of this currency is the extremely low level of protection against counterfeiting.

From 1932 to 1943, all Iranian rials were inscribed with the image of the first Shah of the Pahlavi dynasty, Reza Pahlavi. His portrait was on the front side of banknotes. In the period from 1944 to 1979, the second Shah of the Pahlavi dynasty, Mohammed Reza Pahlavi, was depicted on the obverse of the rials. It should be noted that the portraits of the 35th and last Shah of Iran on banknotes first matured and matured, and then grew old along with the ruler himself.

Change in the appearance of banknotes after the victory of the revolution

In 1979, revolutionaries led by Ayatollah Khomeini won a victory in Iran. The monetary reform was not long in coming. Mohammed Reza Pahlavi was hated by the new government, and she would gladly replace all banknotes with his image. But the problem was that too many 1974 banknotes were stored at the Central Bank. Each such banknote contained the image of the overthrown Shah.

In order not to withdraw banknotes from circulation, and at the same time to get rid of the image of the former monarch, it was decided to use the so-called "seal". It consisted in drawing on the portrait of the Shah and waterred cross sign. Since 1980, the Pahlavi image began to be covered with an original black drawing that followed the outline of the monarch's portrait.

Currency exchange in Iran

Today, there should be no difficulty in exchanging currencies in Iran. Tourists and travelers at the country's airports, hotels, banking institutions and specialized exchange offices can buy the Iranian rial. The exchange rate at official points of sale and purchase of currency may differ from offers in stores or on the street at local money changers. True, such operations are not legal, but there are no pen alties for such actions.

The most popular for exchanging world currencies in Iran are British pounds sterling, euros and US dollars. Other currencies will be more difficult to exchange. This also applies to the currencies of those states that are Iran's neighbors. Banking institutions are usually open from Saturday to Wednesday from 8:00 am to 3:00 pm or 4:00 pm. Some branches may provide financial services until 20:00 pm. It is worth noting that plastic bank cards are practically not used in Iran, so it is better to have cash with you.

It should also be emphasized that euros, US dollars and British pounds can be accepted for payment in the tourist regions of the country. In the remote corners of Iran, even this foreign currency will be of little interest to anyone. In addition, it should be noted that the exchange rate at street money changers, markets and shops is often significantlybetter than the official one. But when carrying out such risky operations, one should be aware of the likelihood of becoming a victim of scammers who can skillfully take advantage of the low degree of protection of the Iranian rial and simply use counterfeit money for exchange.

Iranian rial exchange rate

Iranian rial against the ruble has a rate of 543, 71:1. That is, for one Russian ruble, you can get 543.71 Iranian rials. The Iranian rial against the ruble has recently become more and more profitable, the national currency of this country is constantly getting cheaper. But it is much more profitable for a tourist to have dollars with him. The Iranian rial against the dollar looks even more impressive. The reason for this is the permanent devaluation of the local currency. So, for one US dollar you can get 32375.33 rials. The Iranian Rial to Euro exchange rate is as follows: 1 EUR equals 34833.38 IRR.