Iran is inexpensive by international standards. A bare minimum budget for cheap hotels, Iranian food and overland transport is 15.00 per day. Unless you thrive on discomfort, plan to spend about 25.00 per day. This will provide you with decent accommodation, better food, transport by first-class bus and shared taxi, and visits to all the important tourist attractions. Dual-pricing for foreigners is not nearly as widespread as it was a few years ago, but you will still be charged more than Iranians in all but the cheapest hotels and on domestic ferry routes.

Iran is a cash economy, and the US dollar is king. You can change your US dollars, or euros at a pinch, in selected banks, in legal money-exchange offices, or on the street. There is no black market so rates vary little, but you will save a lot of time and red tape by avoiding the banks. Don't bother taking travellers cheques of any denomination or currency. And forget about using your credit card. Neither MasterCard nor Visa are accepted in Iran, and you can't withdraw money from ATMs, making Iran one of those increasingly rare places where your plastic is useless. Bottom line: bring plenty of greenbacks.

In most cases, tipping is an optional reward for good service. Although there are many circumstances where a small tip is expected, you are unlikely to have a waiter hovering expectantly near your table after delivering the bill. On the other hand, it's worth remembering that helpful Iranians probably deserve some extra appreciation to supplement their meagre wages. As for bargaining, in the bazaar virtually all prices are negotiable; in shops, it's a complete waste of time. Fares in private taxis are always negotiable, but not in any other form of transport because these prices are set by the government. Hotel rates are open to negotiation except in top-end places.

It is also worth noting that prices in Iran are set to rise over the coming years as fuel prices increase from their ridiculously low levels.