Whether you’re an all-the-frills luxury traveler or a backpacker traveling to Iran on a budget, you need to plan ahead with respect to the handling of the monetary units. In spite of the fact that Iran is one of the least expensive countries in the Middle East for travelers, the instability of exchange rates and an isolated banking system has made a few difficulties and inquiries concerning how to arrange and what to convey before coming to Iran.

Currency of Iran is Rial or toman???
Iranians money can be Rial or toman? 
Which one is the legal money of Iran? Rial or toman?

All of these quastions are cause of confusion for every traveler in Iran. In fact, there are two common currencies in Iran. The official unit of currency is the Iranian Rial, but the Iranians almost always talk in terms of tomans, a unit equal to 10 rials, however, Iran is going to switch its national currency back to Toman. Rial has one extra zero and it puts travelers to Iran in trouble by counting, so government pondering about this problem and try to find its solution as soon as possible.
Iranians use Rials in coins, banknotes, official arrangements and use Tomans more commonly and informally. Rial is the printed currency but Toman is much more practical to use in daily life. In this way, when you need to purchase something at a store, pay for taxi and shopping, you are confronting Tomans, not Rials.
For instance If somebody tells you the price for something is “10”, it means 10,000 Toman = 100,000 Rials.

The best tip is that: bring cash!
Do not worry about exchange, Dollar, Euro and Pound can be exchanged to Rial in Iran easily in Banks and Exchange shops. This offices have trained employees ready to be at your service, they are experienced and pretty trustful, and the best thing about currency exchange shops in Iran is that they do fast exchanging!
So you don’t have to change your currency before your travel, almost all Airports, Hotels and all official currency exchange shops will do currency transaction, especially if your money is frequently used in the world and Iranian tourism system, like US Dollars and Euro.
Credit Cards and Traveler’s Checks Because of the sanctions against Iran even common, major credit cards like MasterCard and Visa and MasterCard are not accepted in Iran; so bring cash or use credit cards issued by local banks in Iran. It is not possible to exchange traveler’s checks either.

You should change your money in a currency exchange office available all around the country. Use Iranian Rials when you are and shopping or eating (most places only accept Rials)
If you are from a country (some African or South American countries, for example) the currency of which is not among the major currencies traded in the exchange offices, change your money to US dollars or Euros.

Iran Duty-Free
The following goods may be imported into Iran without incurring customs duty:

  • A reasonable quantity of cigarettes.

• A reasonable quantity of perfume for personal use.

 • Gifts about which the import duty/tax does not exceed the US $80.

The import of the following goods into Iran is strictly prohibited:
Alcohol, narcotics, arms and ammunitions, radio apparatus, CDs and DVDs, any written, printed or recorded materials against the Islamic and national beliefs of the country (fashion magazines and obscene publications), Satellite telephones, all horticultural and agricultural goods including seeds and soil, and gambling tools. Penalties for being in possession of narcotics are very severe.