What Is the Iranian Rial (IRR)?

The Iranian rial, denoted as IRR, serves as the official currency of the Islamic Republic of Iran. Introduced in 1798 and managed by the Central Bank of the Islamic Republic of Iran, the rial draws its name from the Spanish real.

## Key Points about the Iranian Rial (IRR)

– The IRR is Iran’s official currency.
– The exchange rate has stabilized at around 42,000 IRR per U.S. dollar since April 2018.
– Iran’s economy relies heavily on petroleum refining and exports but faces challenges due to economic sanctions related to its nuclear program.
– IRR is considered a blocked or inconvertible currency due to limited global trade activity.
– Despite discussions, the transition from rial to toman has not occurred as of 2023.

Understanding the Iranian Rial (IRR)

Comprising 100 dinars, the value of which is insignificant, one U.S. dollar equated to approximately 42,023 IRR as of December 2023. The IRR is represented locally by the Arabic symbol ﷼.

Following its inception in 1798, the rial was supplanted briefly by the qiran from 1825 to 1932, then reintroduced in 1932. Subsequent to the 1979 Islamic revolution, its value experienced a significant decline.

Iran, an active OPEC member, derives a notable portion of its governmental revenue from oil sales. The Iranian currency’s banknotes come in varying denominations, ranging from 100 to 100,000 rials, with circulating coins available in amounts from 50 to 5,000 rials.

The Iranian Rial (IRR) Convertibility

Over the 2000s, the IRR exchange rate has fluctuated between 1,750 and 44,070 IRR against the U.S. dollar.

Despite its floating exchange rate status, the IRR faces limitations in currency conversion due to enduring economic sanctions imposed by the U.S. This predicament stems from historical distrust and political tensions between the two nations.

Iran’s rigid economic policies, including price controls and subsidies, coupled with pervasive corruption, contribute to the rial’s classification as a non-convertible currency, impeding free global exchange market trading.

## Iran’s Economy Statistics

– The GDP of Iran is projected to rise from $366.44 billion in 2023 to $386.22 billion in 2024.

Offshore investors engaging with non-convertible currencies like the IRR necessitate employing financial tools such as non-deliverable forwards (NDFs) to facilitate trade.

The Iranian Rial vs. Toman

Alongside the rial, Iranians transact using the toman, wherein one toman equals 10 rials. Discussions in 2020 regarding replacing the rial with the toman to address inflation were proposed to simplify transactions and currency values.

## Noteworthy Facts

– Citizens use both the rial and toman as official currencies.
– While a legislative move for a currency switch occurred, the rial remains in circulation as of 2023.

Which Countries Use the Iranian Rial?
The Iranian rial is exclusive to Iran.

How Do You Calculate the Iranian Rial Exchange Rate?
To compute the Iranian rial exchange rate accurately, utilize a trusted currency converter like XE.com to determine the exchange rate against various currencies.

Why Is Iran’s Rial So Weak?
Iran’s rial is vulnerable due to the country’s political turmoil, authoritarian rule, and allegations of supporting terrorism, leading to severe economic sanctions and a heavy reliance on oil exports, which fluctuate based on global market trends.

What Is the Rial to Toman Exchange Rate?
One toman equals 10 Iranian rials.