Iran has unveiled its highest-ever denomination banknote, the 10 million rial note, as the nation grapples with soaring inflation and the economic fallout from the ongoing US-Israel conflict. Banks began distributing the new pink bill, worth approximately $7, this week. The move aims to manage spiraling inflation and meet surging demand for physical cash as Iranians queue for hours at ATMs fearing electronic systems might fail. Many found their withdrawals capped, highlighting the strain on liquidity despite government assurances of continuous supply. Annual inflation reached 47.5 per cent in February, with food and drink costs exceeding 105 per cent, partly due to the elimination of subsidies for essential imports.

The new banknote, featuring historical monuments, replaces the 5 million rial note introduced in February. Its introduction underscores the profound economic challenges facing Iran, exacerbated by the war's impact on infrastructure, trade routes, and the rial's steep devaluation, which has lost about 40 per cent of its value since last year's conflict. The banknote's debut comes as the currency briefly strengthened to 1.5 million rials per dollar before the latest war, though it remains under severe pressure.