5 Toman – Iran

In 1835, Iran under the Qajar dynasty undertook a significant monetary reform by introducing a new silver standard currency, the qiran (later called the rial). This move was a direct attempt to address a century of severe monetary chaos. The 18th century, particularly following the fall of the Safavid dynasty, had seen the proliferation of debased and counterfeit coins from various provincial mints, alongside a flood of foreign currencies like Russian rubles, British rupees, and Ottoman coins. This created a complex and unreliable monetary environment that hindered both domestic trade and international commerce.

The reform, decreed by Fath-Ali Shah and implemented by his grandson Mohammad Shah, centralized coinage at the mint in Tehran. The new qiran was modeled on the Austrian Maria Theresa thaler, a widely trusted trade coin in the region, and was valued at one-tenth of a toman. Crucially, it was minted in high-purity silver (.900 fine) to establish credibility. The immediate goal was to simplify transactions, drive out inferior coins, and project an image of sovereign stability by having a uniform national currency bearing the ruler's insignia.

However, the reform's long-term success was limited. While it temporarily improved the currency's reliability, the Qajar state's persistent fiscal weaknesses—including costly military campaigns, court extravagance, and an inefficient tax system—soon reasserted pressure. The government repeatedly resorted to debasing the silver content of the qiran to cover deficits, a practice that eroded public trust and led to renewed monetary instability in the following decades. Thus, the 1835 reform, while a landmark centralization effort, could not overcome the deeper structural economic problems of Qajar Iran.