The Iranian Rial (IRR) is the official currency of the Islamic Republic of Iran. It is issued and managed by the Central Bank of the Islamic Republic of Iran, which is responsible for maintaining the stability of the currency and implementing the country's monetary policy. The Iranian Rial is abbreviated as "ریال" in Persian and is further subdivided into 100 smaller units called dinars, although due to the low value of the rial, dinar coins are no longer in circulation.
The Iranian Rial is available in both banknotes and coins. Banknotes are issued in denominations of 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 rials, while coins are minted in denominations of 250, 500, 1,000, 2,000, and 5,000 rials.
The value of the Iranian Rial is primarily determined by market forces and the Central Bank of Iran's monetary policy. However, the rial has faced significant depreciation and high inflation over the years due to various factors, such as economic sanctions, geopolitical tensions, and domestic economic challenges. This has led to a decrease in the purchasing power of the rial and affected the overall stability of the currency.
In recent years, the Iranian government has considered the possibility of currency reform, which may involve replacing the current rial with a new currency called the toman. The toman was historically used as a currency in Iran before the rial, and it is still informally used by the Iranian population when discussing prices. One toman is equivalent to 10 rials. However, the currency reform has not yet been fully implemented.
When dealing with the Iranian Rial or conducting transactions in Iran, it is crucial to be aware of the exchange rate, the impact of economic sanctions, and any potential risks associated with currency movements. It is also essential to consider the regulatory framework and restrictions that may apply to financial transactions involving Iran.