Iran - (P 163a) 10 Toman = 100 000 Rials (2021) - UNC

In 2021, Iran introduced new banknotes featuring the icon of the Islamic Revolution, Ayatollah Ruhollah Khomeini (often referred to as Khomeini in English). One of the new denominations is the 10 Toman note, equivalent to 100 000 Iranian rials. The introduction of this series was part of an effort by the Iranian government to gradually switch to the "toman" currency instead of the "rial" and to deal at least in part with long-standing high inflation.

The depiction of Khomeini on Iranian banknotes is nothing new - his portrait has appeared on almost every major denomination since the 1979 Islamic Revolution. But the release of the 10 Toman banknote in 2021 has attracted attention mainly because of the name change and the official denomination. For the domestic population, the note was intended to represent a "clearer" unit of currency, while for foreigners the parent denomination "rial" was somewhat confusing.

The value of the 10 Toman (100,000 rials) has gradually changed since 2021, due to high inflation and differences between the official and real (so-called street) exchange rates. While at the official exchange rate in 2021, 100,000 rials could be adjusted for around US$2-3, the value was often significantly lower on the open market. In 2024, continued economic sanctions and rising inflation have further eroded purchasing power - unofficial estimates suggest that the same 10 Toman may be worth less than US$1 in real terms, depending on the evolution of black market exchange rates.

For Iranians, this means continued pressure on living standards, and for the government, an additional demand in the form of inflation control and the fluctuating value of the national currency. The original intention, namely to facilitate business transactions and price calculation through fewer zeros on banknotes, has so far missed the mark, as the main problem remains the long-weakening purchasing power and political-economic factors preventing the currency from stabilizing.