The Central Bank of Iran has been rushing the distribution of IRR10mn banknotes through selected bank branches nationwide since March 3. 

The decision to roll out the new large banknotes comes as Iran's local intranet and banking infrastructure have come under attack in recent days from US and Israeli fighter jets, as well as online hacking by Israel. Banking authorities fear that if telephony systems and power are cut out, regular cash is the only way to pay for goods and services. 

The rollout is presented as a logistical step to “complete the cash supply chain in special conditions”, yet it lays bare the speed at which the rial’s purchasing power has deteriorated.

At current open-market rates of roughly IRR1.6mn to the dollar, the new note is worth little more than $6, showing how high-denomination paper has become routine tender in an economy grappling with price growth above 45% year on year.

The CBI said people can obtain the new notes within set withdrawal ceilings at designated branches. It stressed that electronic payment systems, cards, mobile and internet banking, remain the backbone of transactions and that the measure is intended to ensure households face no disruption in accessing cash.

The move follows scattered reports in recent days of ATMs running dry in Tehran and provincial cities after the outbreak of hostilities triggered precautionary withdrawals.

The CBI said there was no infrastructure failure and that machines would be replenished as soon as balances were restored. It also raised transfer caps on the Paya and Satna interbank systems to ease non-cash settlements.

The IRR10mn note follows a pattern of ever-larger denominations entering circulation. The CBI began issuing an IRR5mn “Iran Cheque” in February 2026 and previously introduced an IRR2mn note in March 2025.

Each step has been framed as a technical adjustment to facilitate day-to-day transactions in a high-inflation environment where smaller bills have lost practical value.

Governor Abdolnaser Hemmati said on March 1 that bringing down inflation is the overriding policy priority, warning that without “meaningful and sustained” price stability, durable output growth and job creation would remain out of reach.

Point-to-point inflation has exceeded 60%, with average annual inflation above 45% at the end of February, he said, citing fiscal deficits, trade restrictions, banking-sector imbalances and entrenched inflation expectations as key drivers.