Pakistan’s currency markets are witnessing growing interest in purchasing of Iranian Rial amid ongoing tensions between the United States and Iran.
Market data indicates that prior to the conflict, 10 million Iranian Rials were valued at approximately Rs2,500.
In recent days, however, the same amount has surged to around Rs10,000, marking a fourfold increase in the currency’s value.
Chairman of the Exchange Companies Association of Pakistan, Malik Bostan, speaking on Bakhabar Savera, said that many investors are purchasing Iranian rials in anticipation of further appreciation and potential profits.
He explained that investors believe the Iranian Riyal could strengthen significantly if negotiations between the US and Iran succeed or if sanctions imposed on Iran are eased.
However, he cautioned the public against investing based purely on speculation, stressing that there is no guarantee that the Iranian rial will continue to rise in value in the near term.
Mr Bostan also warned that when a currency experiences sharp fluctuations, the issuing country may withdraw high-denomination notes, potentially rendering hoarded currency worthless.
He further noted that Pakistani exporters are currently receiving payments in Iranian Rials for goods sent to Iran, which are then sold in the local market.
Meanwhile, importers are purchasing rials to pay for goods sourced from Iran.
