Iran is an ethnically diverse and mountainous country in Southwest Asia. The Iranian rial (IRR) is the national currency of Iran. It was introduced in 1932 and is made up of 100 subunits called "dinars." It has been administered since 1960 by the Central Bank of Iran, Bank Markazi. In 1932, the modern Iranian rial was introduced after replacing a previous currency known as the qiran. This currency was the first to follow a decimal system, in which each unit is composed of 100 subunits.
The modern Iranian rial's value has fluctuated since its introduction in response to multiple economic and political factors. The most climactic among these events might be the 1978-1979 Iranian Revolution. The revolution helped accelerate a period of drastic currency devaluation. At present, the currency is subject to tight exchange controls intended to limit the outflow of money from Iran. The Central Bank of Iran tried to keep a fixed exchange rate against the U.S. dollar in 2012. The bank even expended important resources to subsidize the Iranian rial to sustain that exchange rate. However, these efforts were mostly abandoned in July 2013, which resulted in almost 50% devaluation of the Iranian rial. These continuous struggles have been more intensified by the existence of economic sanctions against Iran.
Iran is an oil-exporting country whereby almost half of the government's budget is financed from the sale of oil. The Iranian rial comes in banknotes in denominations of 100, 200, 500, 1,000, 2,000, and 100,000 rials and coins. The country has the eighteenth largest economy globally in purchasing power parity (PPP). More than half of its GDP comes from the service sector, over a third from manufacturing and industry, and about 10% from agriculture.
Iran's economy is a fusion of state ownership of oil and other significant concerns, service companies, central planning, and village agriculture and small-scale private trading. It has substantial gas and oil reserves, and roughly 45% of government budget revenues originate from exports of these commodities. The continued increase in world oil prices has alleviated some of the financial influences of international sanctions against the country. Subsidies, price controls, and other rigid government policies pull down the economy, and corruption is widespread. Iran's government has proposed measures, enhancing efficiencies, such as decreasing state subsidies on energy and food. However, the economy continues to suffer from sluggish growth, unemployment, and inflation.