US Dollars Are Illegal in Iran
You may be surprised to know that possessing US dollars in Iran is considered illegal. If someone is caught carrying dollars, they may even face imprisonment. However, there is no clear information about why this restriction exists.
Iran’s Currency Policy
Iran stopped accepting US dollars a few years ago, but this restriction does not apply to other currencies. For instance, visitors can easily carry Indian Rupees while traveling in Iran without any issues.
Indian Rupee’s Strong Value in Iran
Due to Iran’s struggling economy, the value of the Indian Rupee is significantly higher there. As of March 4, 2025, 1 Indian Rupee was equivalent to 481 Iranian Rial. This favorable exchange rate makes Iran a budget-friendly travel destination for Indians.
An Indian tourist carrying ₹10,000 can enjoy several days of comfortable travel in Iran. Mid-range hotels are available for ₹2000-₹4000, while even a stay in a luxurious 5-star hotel would only cost around ₹7000.
Iran’s Economic Challenges
The Iranian Rial, first introduced in 1798, has faced continuous devaluation since 2012, resulting in economic instability. Inflation and unemployment rates have surged over the years.
In 2022, Iran’s inflation rate stood at 42.4%, ranking as the 10th highest in the world. As a result of rising prices and international sanctions, over half of Iran’s population currently lives below the poverty line.
Iran’s Rich Historical Background
Iran is one of the world’s oldest countries, boasting a civilization that dates back more than 7000 years. It is renowned for its historic landmarks, stunning architecture, and rich cultural heritage.
