Difference between Rial and toman Iran currency

Differences Between Rial and Toman: Understanding the Iranian transactions and implementations of everyday currencies in Iran

For first-time visitors to Iran, navigating the currency can be a confusing experience. You might encounter prices listed in both Rial and Toman and banknotes with seemingly endless zeros. This article will untangle the complexities of Iranian Rial and Toman, and help you with Iran's official and unofficial currencies, also it will explain the types of banknotes and coins you might encounter during your travels as coins are almost obsolete in Iran.

Rial and Toman: A Tale of Two Currencies 

While the Rial is the official currency of Iran, with its symbol being “IRR” or “ريال”, the most used term is Toman that reigns everyday economics of Iran. To simply describe Toman, it’s an unofficial currency that equals 10 Rials (to simplify Toman is 10 Rials) This simple conversion rate is the key to understanding the difference between the two and understanding the everyday struggle of Iranians.

Imagine you're shopping at Palladium or Iranmall shopping centers and the salesperson might say the price of your desired object is 1,500,000 Tomans. To convert this to Rial, simply add a zero to the end of it and you’ll end up with 15,000,000 Rials. It’s necessary to do this exchange if you are using a credit card because all bank-related transactions including: (ATMs, POS, etc.) are in Rial too.

This dual system of Rial and Toman can be perplexing, but there's a clear reason behind it. Due to high inflation, the Rial has lost much of its value, and prices with numerous zeros in the Rial can be cumbersome to pronounce and write. Toman, on the other hand, provides a much more manageable scale for everyday transactions and offers comfort and rigidity in your everyday use.

The Impending Change: will the Iranian government finally make the decision to change From Rial to Toman?

The Iranian government, recognizing the dominance of the Toman in daily use, has proposed officially replacing the Rial with a new Toman. This new Toman would be worth 10,000 Rials, essentially removing four zeros from the current currency. While the exact timeline is still uncertain, the transition is expected to be gradual to minimize disruption.

For tourists visiting Iran in the near future, it's important to be aware of both Rial and Toman. As the prices might be listed in either currency, so knowing the conversion trick (adding or removing a zero) will come in handy.

A Look at Iranian Banknotes and Coins

Now that you understand the Rial and Toman relationship, let's explore the banknotes and coins you'll encounter in Iran. Banknotes come in denominations of 10,000, 20,000, 50,000, 100,000, 200,000, 500,000, 1,000,000, and 2,000,000 Rials. Remember, Iranians typically refer to these amounts in Tomans (just remove a zero!). The notes depict prominent figures from Iranian history and culture, such as poets, scientists, and political leaders.

Coins are less common than banknotes in Iran. They come in denominations of 500, 1,000, 2,000 and 5,000 Rials. Again, think of Tomans – these coins represent values from 50 to 500 Tomans. The coins feature various designs, including animals, historical landmarks, and symbols of Iranian heritage.

Tips for Using Rial and Toman in Iran

Here are some helpful tips for navigating Rial and Toman during your trip to Iran:

• Ask for clarification: If you're unsure whether a price is listed in Rial or Toman, don't hesitate to ask the seller for clarification. Most Iranians are accustomed to dealing with tourists as it’s common for young children to mistake the same concept and they will happily explain the conversion.
• Carry a mix of banknotes: While larger denominations (like 500,000 or 1,000,000 Rials) are convenient for higher-value purchases, having smaller bills (like 100,000 or 50,000 Rials) is essential for everyday expenses like street food or public transportation.
• Use a currency converter app: Downloading a currency converter app can be a lifesaver, especially when encountering unfamiliar Rial amounts.
• Consider using traveler's checks: While less common than in the past, traveler's checks can be a secure way to exchange currency in Iran. However, their acceptance might be limited compared to cash.