Euro price today

The euro price is, after the dollar, the most important exchange rate for Iranians; it is the currency used to calculate the cost of studying in Germany and Italy, travel to Schengen countries, and a significant share of Iran's trade with Europe. On this page you can see the live euro price in Tehran's open market in Toman, and below we explain what the euro is, how its Toman rate is influenced by both domestic and global markets, and what to watch out for when buying euros.

The euro: Europe's common currency

The euro (EUR) is the official currency of more than twenty European Union member states, collectively known as the "eurozone". It replaced national currencies such as the German mark, the French franc and the Italian lira in electronic transactions from 1999, and as banknotes and coins from the start of 2002. Monetary policy for all these countries is set by a single institution, the European Central Bank (ECB) , headquartered in Frankfurt.

After the dollar, the euro is the world's second-largest central bank reserve currency and the second most traded currency in the international forex market. This standing has given the euro a prominent role in Iran's foreign trade too, especially in periods when access to the dollar for bank transfers was more restricted.

What do Iranians use the euro for?

Demand for the euro in the Tehran market comes from a few main sources:

• Education: Many Iranian students study in Germany, Italy, France, Austria and the Netherlands. Living costs, tuition and, in some countries, the money they must deposit in a blocked account to obtain a student visa are set in euros.
• Travel: Schengen visa fees, accommodation and shopping on European trips are paid in euros, which drives up seasonal demand, especially before summer and Nowruz.
• Imports: Industrial machinery, medical equipment and medicines are sourced from Europe, and part of these transactions is settled in euros.
• Work migration: Initial settlement and financing costs on migration routes to European countries also create demand for the euro.

How is the euro price formed in the open market?

The euro's Toman rate can be seen as the product of two factors: the value of the rial against foreign currencies and the value of the euro against the dollar in the global market. Put simply, the euro price in Tehran is roughly equal to the price of the open-market dollar multiplied by the global euro-to-dollar rate (EUR/USD). This relationship is not exact, though; supply and demand for the euro itself in the Tehran market also play a role, and the euro sometimes trades slightly off this product.

The practical upshot of this relationship is that the euro price can change even on a day when the dollar has stayed flat in Tehran; all it takes is for EUR/USD to move in the global market. Conversely, if the dollar jumps in Tehran but the euro weakens against the dollar globally, the euro will rise less than the dollar.

Factors affecting the euro price

1. Domestic factors in Iran

Inflation and liquidity growth, the country's foreign currency income, sanctions and political news are the same factors that move the dollar, and they affect the euro through the same channel. That is why, over the long term, the euro's trend in the Tehran market has largely moved in step with the dollar.

2. European Central Bank monetary policy

ECB interest rate decisions, and how they compare with the US Federal Reserve, are the main driver of EUR/USD. If the ECB is expected to keep rates high, the euro usually strengthens in the global market. Follow the interest rates of major central banks on the global interest rates page.

3. The German economy and European risks

Germany is the largest economy in the eurozone, and its industrial and inflation data have a strong impact on the euro. Europe is also a major energy importer; spikes in oil and gas prices, debt crises and political tensions on the continent usually weaken the euro. Check the release times of key eurozone data in the Teagle economic calendar .

Euro banknotes, transfers and rate differences

In the Iranian market the euro is traded in several forms, and the price of each can differ slightly:

• Euro banknotes: What you get from an exchange office and use for travel. The rate on this page is the open-market rate.
• Euro transfers: Sending money to a foreign account, for example for a student's tuition or living costs. Because of banking restrictions and sanctions, transfers are usually made through exchange offices and intermediaries, and their fees and rates differ from banknotes.
• Euro in official systems: Currency traded for imports and exports on the Central Bank's systems, whose rate is usually lower than the open market.

For euro banknotes, exchange offices sometimes offer a different rate for large notes (such as 200 and 500 euro notes) or worn notes. The 500 euro note has not been printed since 2019, although it is still legal tender; for spending while travelling, smaller notes are more practical.

Tips for buying euros

• Define your goal: If you need euros for tuition or a trip on a set date, buying in several stages reduces the risk of picking a bad moment.
• Compare buy and sell rates: The gap between the euro's buy and sell rates at exchange offices is usually wider than for the dollar, because euro trading volume is lower.
• Buy from a licensed exchange office: Buying and selling currency is subject to Central Bank regulations, and the limits and conditions for buying banknotes may change.
• Compare the euro with the dollar: If your expenses are not in euros, holding euros instead of dollars means taking on the extra risk of EUR/USD fluctuations.

If, instead of buying banknotes, you intend to trade the euro rate in global markets, this is done through currency pairs such as EUR/USD and euro to pound (EUR/GBP) with forex brokers, which involves high leverage and risk. Before taking any action, read the forex broker reviews on Teagle.

The euro alongside other currencies

Comparing the euro with other currencies helps you get a clearer picture of the market. The British pound usually moves in the same direction as the euro, and you can see its Toman rate on the pound price page. The Swiss franc , although at the heart of Europe, behaves differently from the euro in crises. Follow the full list of exchange rates in the Iran market currency section , and to see the multi-month trend, open the candlestick chart at the top of the page on longer timeframes.

The information on this page is for informational purposes only and is not a buy or sell recommendation. Prices are obtained from the stated sources and may differ slightly from the rate at your local exchange office.