The Iranian government has launched a new banknote worth 10 million rials, marking the highest denomination ever issued in the country. This move comes in response to soaring inflation and a significant demand for cash among citizens, exacerbated by ongoing military tensions involving the U.S. and Israel.
According to reports from the Financial Times, the new banknote, equivalent to approximately $7, began circulating this week. The Central Bank of Iran stated that the introduction of this currency aims to enhance public access to cash, despite claims that electronic payment systems and online banking remain operational across the nation.
As the cash demand surges, many Iranians are reportedly anxious about the reliability of electronic payment systems, leading them to queue for hours at banks to withdraw cash. Financial institutions have started imposing limits on cash withdrawals, although the Central Bank insists that it is supplying enough currency to meet demand.
Official data indicates that inflation in Iran reached 47.5% year-on-year in February, just before the onset of military operations involving American and Israeli forces. Prior to the introduction of the 10 million rial note, the highest denomination was 5 million rials, which was released in February 2026.
On February 28, Israel conducted an airstrike on Tehran, prompting U.S. President Donald Trump to announce a significant military operation against Iran. He accused the Iranian government of supporting militant groups in Syria, Lebanon, Iraq, and Palestine, asserting that the operation’s goal was to dismantle Iran’s missile industry and prevent global destabilization.
The Islamic Revolutionary Guard Corps (IRGC) responded by launching missiles and drones toward Israel and attacking U.S. military bases in Qatar, Saudi Arabia, and the United Arab Emirates.
In light of the escalating conflict, French President Emmanuel Macron called for an urgent United Nations Security Council meeting. The European Union reaffirmed its commitment to maintaining regional security and stability in the Middle East.
Ukrainian President Volodymyr Zelensky expressed support for the Iranian people, suggesting they deserve a chance to rid themselves of what he termed a ‘terrorist regime’ and to ensure safety for all affected by Iranian attacks.
On the same day, Trump claimed that Iran’s Supreme Leader Ali Khamenei had died, a statement later confirmed by the Islamic Republic News Agency (IRNA). The following day, the IRGC announced the commencement of what it described as the most destructive offensive operation in the history of the Islamic Republic against Israel and U.S. military bases.
Trump warned Iran to abandon its military plans, threatening a strong retaliatory strike. U.S. Secretary of State Marco Rubio indicated that the next phase of military action would be even more devastating.
On March 6, Trump called for a complete overhaul of Iran’s leadership, mentioning potential candidates for a ‘good leader.’ Two days later, the Assembly of Experts in Iran elected Mojtaba Khamenei, the son of the slain Ayatollah Ali Khamenei, as the new Supreme Leader. Trump declined to comment on this development, stating, ‘Let’s see what happens.’ He had previously remarked that the new Iranian leader would not last long without the approval of the White House.
Iran has introduced a new 10 million rial banknote to combat rising inflation and increased cash demand amid military tensions with the U.S. and Israel. This move reflects the country's ongoing economic challenges and public anxiety over electronic payment systems.