Iranian currency demand soars in Pakistan's market

The demand for Iranian currency has surged once again, leading to a significant increase in its value in Pakistan's open currency market.

Following an agreement between the United States and Iran to halt the Middle East war and easing uncertainty about global oil prices, the value of 10 million Iranian rials in the local open market has risen by Rs2,000-3,000, reaching between Rs3,500 and Rs4,500.

Talking to The Express Tribune, Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan said Pakistanis had purchased a total of 60 billion Iranian rials over the past two days, worth approximately Rs250 million. He noted that demand for the Iranian currency had picked up again after a gap of nearly three months, with most buyers belonging to the lower-middle-income segment.

According to Bostan, around two and a half months ago, following a ceasefire announcement by the US president, buying activity in Iranian currency had surged, pushing the price of 10 million rials from a few hundred rupees to around Rs12,000. However, subsequent Israeli and US strikes on Iran triggered a sharp decline in the currency's value, bringing the price of 10 million rials down to Rs2,000-3,000 just two days ago.

Over the past two days, however, renewed demand has once again driven a noticeable recovery in the Iranian currency's value. Bostan advised investors to exercise caution when investing in Iranian currency, noting that only a deal has been agreed between the two countries so far. He warned that speculative trading and price volatility could persist until a final agreement is reached. He added that the Iranian currency's true value would become clear once a formal agreement is signed between the United States and Iran.