Free-Market Dollar vs Remittance vs Herat and Sulaymaniyah Rates
The dollar trades at slightly different prices in Tehran, as a remittance, and in Herat, Sulaymaniyah, Dubai and Istanbul. Here is why, and when to use each rate.
- The Tehran free-market dollar is the cash rate in Iran.
- Remittances (havale) are used for payments abroad and have their own rate.
- Regional markets usually differ from Tehran by a few tenths of a percent.
This guide explains everything about free-market dollar vs remittance that you need for a good decision, with examples.
When people talk about “the dollar rate” they usually mean the Tehran free-market rate. But the dollar trades in several markets, each with its own price. EZRate calculates them separately so the differences are transparent.
Tehran free-market dollar
The rate exchange offices and traders use for cash dollars in Tehran — the main pricing reference in Iran.
US Dollar269,500Toman+0.15%Dollar remittance (havale)
Remittances pay for things abroad, such as imports or tuition. Transfer costs, settlement time and risk make the remittance rate differ from cash.
Herat, Sulaymaniyah, Dubai and Istanbul
These cities have active Toman–dollar markets. Their gap to Tehran is usually small and depends on transfer costs, local demand and border conditions. On volatile days they sometimes react before Tehran.
Which rate should you use?
- Buying or selling cash in Iran: the Tehran free-market rate.
- Paying abroad: the remittance rate.
- Trading in border cities or abroad: that market’s rate.
Which dollar rate matters to you?
- If you buy or sell cash dollars, the Tehran free-market dollar is your reference.
- If you send money abroad for tuition, goods or family, check the remittance rate, which depends on the destination and the fee.
- If you trade in the east or west of the country, or with Afghan and Iraqi traders, follow the Herat and Sulaymaniyah rates too.
Why the rates differ
Every market has its own supply and demand. Cash dollars are more plentiful in Herat and Sulaymaniyah, so they usually trade slightly below Tehran; remittances carry transfer costs and risk and can be above or below cash. Unusually large gaps are often a sign of excitement or a shortage in one market. The USDT rate, which moves close to the dollar, is another gauge of dollar demand.
Where to see them on EZRate
On the dollar page, “Dollar rate in other markets” shows Herat, Sulaymaniyah, Dubai, Istanbul and remittance rates with each city’s flag and the gap to Tehran. See the UAE dirham and Turkish lira to compare the Dubai and Istanbul markets.
Frequently asked questions
- What is the next-day dollar rate? The rate for delivery the next day, usually slightly different from today’s cash rate; it shows what the market expects.
- Why is the Dubai dollar above or below Tehran? Transfer costs and traders’ demand in Dubai; see the gap in percent on the dollar page.
- Is a remittance safer than cash? It avoids carrying notes but depends on the exchange office’s reliability; use well-known offices.
- How is the official exchange-centre rate related? It is for importing certain goods and differs from the free-market dollar people trade; EZRate publishes the free-market rate.
Summary
The Tehran free-market dollar, the remittance rate and the Herat and Sulaymaniyah dollars are one currency with several prices, each the reference for a different job. Decide whether you need cash or a transfer, and in which market, and use that market’s rate; comparing unrelated rates is one of the most common causes of a bad trade.
Following the currency market on EZRate
The live the dollar, euro and dirham rates are refreshed every minute from real market trades. Star any rate to add it to «My watchlist» on the home page, set a free e-mail, Telegram or browser alert for your target price, and convert any amount to Toman with the converter. The EZRate Telegram channel also posts the main rates several times a day.
Important note
This article is for education only and is not buy or sell advice. Iran’s currency, gold and crypto markets can move a lot in a short time; before any financial decision check the live rate, weigh your own risk and stay away from unknown traders and guaranteed-profit offers.
