Iranian Rial Currency

Introduction

Iran was known as Persia and was among the greatest empire that was frequently invaded. Iranian Rial as per ISO 4217 has the code IRR and this is the currency. Iranian Rial is subdivided into 100 dinars, however owing to the decreased value of rial, it is not used in accounting.

Iranians express the money and goods prices in ‘tomans’ though it is not an official unit. They account 1 toman= 10 rials, but the written amount is in rials.

The sign stating price on any commodity is in rials, but the clerk of the store would say the cost in tomans.

History

Initially, Iranian Rial was introduced in 1798 such that one coin was one eighth of toman. In 1825 rial was one tenth of a toman and in 1932; Iranian Rial was replaced by qiran that was divided into 100 new dinars.

These coins and currencies have wide usage still in Iranian languages.

Value

The Iranian Rial/ US dollar exchange rate was stable since the year 2003. The exchange rate in 1932 with the British Pound was 59.75 rial for 1 pound. This became in 1936 as 80.25, in 1939 as 64.350, in 1940 as 68.8, in 1941 as 141 and in 1942 as 129.

Iran switched in 1945 to U.S.dollar as the peg @ 32.25 rial =1 dollar. In 1957, 1 dollar= 57.75 rial was altered and in 1973 it became 68.725 rial for 1 dollar and this was not followed by Iran. Eventually, in 1975, the peg to the U.S. dollar came to a drop.

The value of this currency declined after the Islamic revolution. In 1978 on March 15, 1 US dollar =71.46 rials and in July 1999 it became 1 dollar= 9430 rials.

However, since 1999 the rial is stable and the economy is growing rapidly. Though it is said to be the ‘market rate’ the Iranian rial is controlled by the central bank.

The foreign exchange in the black market is active, but the TSE rate and the foreign exchange readily available narrow the difference to IR100. However, in September 2010 the speed increased as the foreign currency transferring channels from and to Iran is blocked owing to International sanctions.