Currency Rates in Iran: The #1 Guide for What Seems to Be Extremely Confusing
While Iran is an extremely cheap country for tourists, the constantly changing currency rates can be cause for much confusion and frustration. In the midst of this confusion, you may sometimes get the feeling that something has gone wrong in a transaction, or that you have in some way been scammed. Iranians are known for nothing more than their hospitality, so you absolutely shouldn’t feel like any person you come across is trying to make some profit off you. However, knowing a few things about how money works in Iran can help you better understand the transactions you make.
If you still have any questions regarding this matter after finishing this post, don’t hesitate to contact us! And we can help you with everything you need when you come to Sarv Hostel, and be sure to check our Instagram, because who knows what events we may have!
This blog post is dedicated to helping you fully grasp currency rates in Iran, as well as the difference between Rials and Toomans, but before we get to that, let’s talk a bit about why you need cash in Iran.
The Importance of Bringing Cash to Iran
Due to sanctions, your credit/debit card isn’t going to work in Iran. While carrying large amounts of cash has its own problems, it’s kind of your only choice, because there are only a few select places where you can actually use your credit card to withdraw and exchange money (and these places aren’t official offices, so unless a local whom you can trust recommends them to you, you can’t fully rely on them). This doesn’t mean you should exchange all of your Euros/Dollars at your first chance, but it does mean that you’ll primarily be dealing with cash.
So, most of your transactions are bound to be made in cash in Iran, but there’s still one issue. Hostels and most places of accommodation accept foreign currencies like Euros or Dollars, but it will not be as easy to find other places of business that do the same. An even more common issue you would have is paying taxi fares, so you need to change your money to Rials. Because of the bizarre exchange rates, you always end up carrying huge stacks of cash on your person, so this solution is still not exactly ideal.
It’s also important to note that while you won’t have much difficulty exchanging Euros or Dollars, but if you have a different currency, it’s best to change to the aforementioned banknotes before your trip. If you want a much easier way to deal with money during your time in Iran, check out Mahcard’s debit card offers!
You can take a look at our Mahcard blog to get more information!
Rials & Toomans
We know, it’s confusing. It’s not as complicated as it seems though: Rial is the official Iran currency. However, due to high inflation rates and economic crises, people started omitting one zero from the end of a Rial rate and called the outcome Tooman. Nowadays, you will hardly see any local refer to Iranian money as Rial, but it’s still the official currency, so it’s what you’ll see on banknotes, price tags, websites, etc. This makes it difficult for tourists to deal with money: Not only are there so many zeroes, people call the money something else.
Here’s all you need to do when you’re starting to get confused: When you are given a price in Rail, omit one zero from the ending. If you are given a price in Toomas, add one zero to the end. For example, if something costs 500,000 Rails, it’s actually 50,000 Toomas (you may even hear people just say it’s fifty Toomas); If something costs 25,000 Toomas, it’s 250,000 Rails. The number that is written on banknotes is in Rials, so try to get used to automatically removing one zero in your mind.
The Official Iran Currency Rate
Another cause for confusion among tourists is what is called the Official Rate. This rate is exclusive to the government and is used to simplify governmental transactions and exchanges. Now, when tourists try to check the rates themselves, they see the Official Rate -which is much lower than the actual free market rate- and may feel like they’re being ripped off. It’s important to know what source to get your rates from or go to credible places of business that you know aren’t planning on scamming you.
For your information, the Official Rate is approximately 20% lower than the free market rate.
How to Keep Up to Date with the Currency Rates in Iran
If you just do a quick search on Google, or if you look up the currency rates on most websites, you won’t see the free market rate, rather, you’ll see the Official Rate. A relatively reliable website that can show you the actual rate with near accuracy is Bonbast, but you’re going to come across the issue of Internet censorship and having to use VPNs with this site.
International airports offer exchange services as well, but they have notoriously high rates, so that’s still not a good idea. A lot of hostels offer exchange services too; If their rates sound reasonable to you, it’s definitely convenient. At the end of the day though, going to an official exchange office is perhaps the best way of dealing with this problem. If you want to keep up to date personally, you can check Instagram pages like @dollar_gold.vip, but keep in mind that businesses have different selling and buying rates.
The thing you should keep in mind is that currency rates in Iran are changing quite literally by the hour. This makes it easier to understand why there’s an inconsistency between different prices that people give you. Let’s be honest, ultimately, you’ll hardly ever be at the losing end of a transaction in Iran, but since there are a lot of tourists who travel with multiple destinations in mind and a limited budget, it’s important to save every buck.
Reliable Exchange Offices
One problem that arises when going to an exchange office is the crowd of people who are waiting outside heavily trafficked streets and areas, looking to exchange your money at lower rates. The issue is that in many cases, they are trying to rip you off by giving you fake banknotes, so you should keep in mind that no matter how enticing their deals are, you’re taking a big risk.
Every major city in Iran has credible and reliable exchange offices (usually heavily concentrated in one street or neighborhood) that you can visit where you know you’re getting good rates. The best thing you can do is talk to your hostel (or other place of accommodation)’s front desk or helpful locals for directions.
Other Services
As previously discussed, getting yourself a prepaid debit card from different agencies such as Mahcard or Tap Persia is one of the best things you can do. This would mean that you’re also going to be able to make online transactions , and most importantly, that you don’t have to carry large amounts of cash on you.
Some banks in Iran including Saman Bank and the National Bank of Iran also offer tourist debit cards. It’s a bit less convenient, since you have to actually go to one of their branches, or visit their booth in IKA and fill out paperwork. Who wants to do that when you can just go through the process online?
Find out about the other essential parts of your trip to Iran in our blogs!
