Kamal Ghorui
Iran has introduced its highest-value banknote yet — a 10 million rial note — as war and economic turmoil push the country’s financial system to the brink. According to Financial Times reporting, the new note, worth roughly $7, has already begun circulating through banks as long queues form outside cash machines, with many running dry amid fears that electronic payment systems could fail during the ongoing US-Israel conflict.The move marks a sharp escalation in Tehran’s response to spiralling inflation and a collapsing currency. The pink banknote, featuring the historic Jameh Mosque of Yazd on one side and the ancient Bam Citadel on the other, overtakes the 5 million rial note introduced just weeks earlier. Authorities insist the measure is designed to “ensure public access to cash”, even as digital banking remains officially prioritised.
The rapid rollout reflects a deeper crisis. Iran’s rial has plunged to around 1.6 million to the US dollar, close to record lows, eroding purchasing power after years of sanctions and economic isolation. Inflation has surged, with basic goods becoming increasingly unaffordable. Food prices have doubled over the past year, while some staples have risen far more sharply, forcing families to cut back drastically on essentials.The strain has been building for months. Protests that erupted earlier in January over the rising cost of living were met with a sweeping crackdown, including the closure of dozens of businesses accused of supporting the unrest. Internet shutdowns during that period wiped out incomes for many small entrepreneurs, particularly those reliant on online platforms, leaving lasting scars on already fragile livelihoods.
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Now, the war has intensified the pressure. Continued US and Israeli strikes, including attacks on key nuclear facilities such as Natanz, have deepened uncertainty. While officials say there has been no radiation leak, the conflict has rattled markets and further weakened investor confidence. Cash transactions have surged, with traders and merchants increasingly avoiding credit or cheques amid fears of instability..
