Iran Banknotes: History, Notable Notes & Collecting Guide
Iran's paper money is one of the most vivid regime-change stories in world numismatics. In a single generation the notes went from bearing the portrait of a shah, to having that portrait scratched out with an overprint, to carrying the face of the man who replaced him. That visible break in 1979, combined with a currency that has weathered decades of inflation, is what makes Iranian banknotes such a rewarding and affordable collecting theme.
Iranian rial (IRR) Pahlavi & Islamic Republic 1979 revolution overprints Khomeini portraits
Last updated: July 2026
The currency of Iran is the Iranian rial (ISO code IRR), issued by Bank Markazi Iran, the country's central bank. What makes Iranian notes collectible is the sharp line the 1979 Islamic Revolution drew straight across the currency: pre-revolution notes carry the portrait of Mohammad Reza Shah Pahlavi, transitional notes have that portrait deliberately obscured, and modern notes feature Ayatollah Khomeini, mosques, and calligraphy. Add a long history of inflation that pushed denominations ever higher, and Iran offers a collector a complete national story in paper, most of it still available in crisp condition at a modest price.
What is the Iranian rial?
The Iranian rial (IRR) is the official currency of Iran, but in daily life Iranians almost always quote prices in tomans, a traditional unit equal to ten rials.
That split between the official rial and the spoken toman is one of the first things a new collector notices, and it runs deep in Iranian life. The notes themselves are issued by Bank Markazi Iran, the central bank founded in 1960, which took over note issuance from the earlier Bank Melli. Imperial-era notes were denominated in rials and carried the Lion and Sun, the emblem of the Pahlavi monarchy. After the 1979 revolution that emblem disappeared, but the rial stayed as the unit of account.
The rial has lost value steadily over the decades, under the weight of war, sanctions, and economic pressure, which is why Iran kept issuing larger and larger denominations and eventually introduced bearer instruments called Iran cheques to handle everyday sums. In 2020 Iran's parliament approved a plan to redenominate the currency and rename the rial the toman, but the definitive law passed in October 2025 kept the rial name while dropping four zeros and subdividing the new rial into 100 qerans, a change reported by Reuters and other outlets. Iran's inflation has been chronic rather than the record-breaking overnight collapse seen elsewhere, but for context on the most extreme episodes you can compare it in every hyperinflation ranked.
What makes Iranian banknotes collectible?
Iranian notes are collectible because a single lifetime of paper money records the fall of a monarchy, a revolution, and the birth of a republic, and most of it is still affordable.
The most sought-after pieces are the transitional notes of 1979 and 1980. After the revolution, the new authorities took Pahlavi notes still in circulation and overprinted the Shah's portrait with an arabesque or lattice pattern to cover his face. Holding one of those overprinted notes is holding the exact moment a regime was erased from its own currency. The table below groups the notes a collector is most likely to encounter, described in general terms rather than by catalog number, since inventory and cataloging vary.
| Series | Era | What is on it | Why collectors want it |
|---|---|---|---|
| Pahlavi (imperial) notes | Pre-1979 | Portrait of Mohammad Reza Shah Pahlavi, the Lion and Sun emblem | The face of a vanished monarchy, the last notes of imperial Iran. |
| Revolution overprints | 1979 to 1980 | Pahlavi notes with the Shah's portrait covered by an arabesque overprint | A physical record of regime change, the single most distinctive Iranian issue. |
| Early Islamic Republic | 1980s | Mosques, revolutionary and religious motifs, the new national emblem | The first notes of the new republic, with the monarchy fully removed. |
| Khomeini portrait notes | Early 1990s to present | Portrait of Ayatollah Ruhollah Khomeini on the face | The standard modern Iranian note and the most recognizable to new collectors. |
| High denominations & Iran cheques | 2000s to present | Large rial denominations and bearer Iran cheques (for example 500,000 and 1,000,000 rials) | The inflation story in your hand, big numbers driven by a falling currency. |
Because so many of these notes left circulation in bundles or were saved rather than spent, a great many survive in Uncirculated condition. Uncirculated (UNC) is the top of the letter-grade ladder that runs UNC, AU, XF, VF, F, VG, G, and it means a note was never folded or handled in commerce. To understand how condition is judged and what the numbers on a certified holder mean, see our banknote grading guide.
Is it legal to own Iranian banknotes?
Owning Iranian banknotes as collectibles is generally treated as legal in the United States, but US sanctions add a layer that ordinary foreign currency does not carry. The following is general information, not legal advice.
Collectors in the US routinely own demonetized and foreign notes, and a banknote held for its history rather than spent as money sits in the collectibles category. The wrinkle with Iran is that it is subject to US sanctions administered by the Office of Foreign Assets Control (OFAC), which can restrict certain transactions connected to embargoed countries. The practical takeaway for a collector is simple: buy notes that are already in the United States from an established US dealer that handles compliance, so your purchase is a domestic collectibles transaction rather than a direct dealing with a sanctioned party. Sanctions rules are detailed and change over time, so treat this as background and read our banknote legality guide for the owning-versus-spending distinction. For anything specific to your situation, consult a qualified professional.
How do you start collecting Iranian notes?
Start with one note that tells the whole story, a revolution overprint or a Shah-era note, in Uncirculated condition, from a source-first dealer.
A good first purchase is a note where the history is visible on the paper itself. An overprinted 1979 transitional note is the clearest example, but a crisp Pahlavi note with the Shah's portrait, paired later with a modern Khomeini note, gives you the before-and-after in two pieces. From there many collectors build toward a small type set: one imperial note, one overprint, one early republic note, and one modern high denomination. Because Iranian notes are widely available in top grade, condition is rarely the limiting factor the way it is with older, scarcer paper, so you can focus on picking clean, well-centered examples. For a full walkthrough of choosing a focus, budgeting, and buying safely, read how to start collecting world banknotes. If you want the strongest guarantee of condition, look for examples already certified by PMG or PCGS in our graded banknotes.
Where can you buy Iranian banknotes?
Buy from a dealer that documents where its notes come from and stands behind them. Planet Banknote stocks Iranian notes across the eras described above, sourced direct and inspected in-house rather than resold from anonymous lots. Rather than quote collector prices that shift with inventory, we point you to the live listings.
Every note Planet Banknote sells passes our Planet Banknote Verified inspection and ships with a free Certificate of Authenticity, so your purchase is tied to a named, reachable business. If you are new to buying world paper money, our guides on how to buy world banknotes and how to store banknotes cover vetting a dealer and protecting your notes once they arrive. Ordering, shipping, and return questions are answered on our FAQ page.
Frequently asked questions
What currency does Iran use?
Iran's official currency is the Iranian rial (ISO code IRR), issued by Bank Markazi Iran, the central bank. In everyday speech, however, Iranians almost always quote prices in tomans, a traditional unit equal to ten rials. Iran's parliament first approved a redenomination plan in 2020 that would have renamed the rial the toman, but the definitive law passed in October 2025 kept the rial name while removing four zeros and subdividing the new rial into 100 qerans, a change reported by Reuters and other outlets.
What is the difference between pre- and post-1979 Iranian banknotes?
Pre-1979 notes were issued under the Pahlavi monarchy and carry the portrait of Mohammad Reza Shah Pahlavi along with the Lion and Sun emblem. After the 1979 Islamic Revolution, the Shah's portrait was removed. Some existing notes were overprinted with an arabesque pattern to cover his face, while newer notes featured mosques, revolutionary and religious motifs, and from the early 1990s the portrait of Ayatollah Ruhollah Khomeini.
Is it legal to own Iranian banknotes in the United States?
Owning Iranian banknotes as collectibles is generally treated as legal in the United States, since a note held for its history rather than spent sits in the collectibles category. This is general information and not legal advice. The important caveat is that Iran is subject to US sanctions administered by OFAC, which can restrict certain transactions involving embargoed countries, so it is safest to buy notes already in the United States from an established US dealer. See our banknote legality guide for more, and consult a professional about your specific situation.
Why does Iran have such high-denomination banknotes?
Decades of inflation and a steadily depreciating rial pushed Iran to issue ever-larger denominations, and eventually to introduce bearer instruments called Iran cheques in denominations such as 500,000 and 1,000,000 rials to handle everyday sums. The big numbers on modern Iranian paper are a direct reflection of that long currency decline rather than a sudden overnight collapse.
Are Iranian banknotes a good place to start collecting?
Yes. Iranian notes pack an unusual amount of history into an affordable, widely available series, and many survive in crisp Uncirculated condition. A single collection can hold the fall of a monarchy, a revolution, and a modern republic. The best first purchase is a note where the history is visible, such as a 1979 revolution overprint, bought from a source-first dealer that documents where its notes come from.
Planet Banknote is a family-owned dealership in Sarasota, Florida, founded in 2021. Every note is sourced direct from mints, central banks, and authorized distributors, inspected through our Planet Banknote Verified process, and ships with a free Certificate of Authenticity. US orders ship free via USPS Priority, and every order includes a free bonus gift.