There are two common currencies in Iran. Although the official currency is Rial (Rls), the currency which is used by people is Toman. Each Toman is equal to 10 Rials.
Rial is used in coins, banknotes and official arrangements. Rial is the printed currency but Toman is much more practical in daily life. So, when you need to pay for shopping, taxi or other stuff, you are confronting Tomans, not Rials.
Because of the sanctions against Iran, major credit cards like MasterCard and Visa are not accepted. So, bring cash or use credit cards issued by local banks in Iran. It is not possible to exchange traveler's checks either. Bank Melli Iran has also provided an electronic debit card in Rial for tourists that can be used throughout Iranian banking system.
Where can you exchange Iranian Rial?
The easiest and fastest way to change cash is at an official money-exchange office, where the whole deal is done in seconds. Although you can do it at many banks in the cities, but it would take time and need more paperwork. Exchange shops (Sarrafi) can be found in most cities, usually signed in English.
Bear in mind that changing money in an exchange shop is much safer than doing so with a street moneychanger.
Where can you buy Iranian Rial?
To buy Iranian Rials, the easiest and fastest way is at an official money-exchange office, where the whole deal is done in seconds. Although you can do it at many banks in the cities, but it would take time and need more paperwork. Exchange shops (Sarrafi) can be found in most cities, usually signed in English. If not labeled “Exchange”, look for small shops similar to jewelry stores that have foreign bank notes in the window.
Don't forget that changing money in an exchange shop is much safer than doing so with a street moneychanger.