LAHORE – A currency exchange market expert has warned the Pakistanis who are intensively buying Iranian Rials for quick profits, saying it could make a backfire.
Amid ongoing tensions between the United States and Iran, Pakistan’s currency market has witnessed an unusual trend, with investors showing increasing interest in the Iranian currency rather than the US dollar or other foreign currencies.
Market data indicates that prior to the conflict, one crore Iranian rials were worth approximately Rs2,500. In recent days, the same amount has surged to Rs10,000, marking a fourfold increase in the rial’s value.
Chairman of the Exchange Companies Association of Pakistan, Malik Bostan, told media that many investors are buying Iranian rials in anticipation of further price increases, hoping to earn significant profits.
He noted that investors believe the rial’s value could rise considerably if negotiations between the US and Iran succeed or if sanctions on Iran are eased.
However, Malik Bostan cautioned the public against investing based solely on speculation, emphasizing that there is no guarantee that the rial’s value will increase soon or at all.
He also explained that significant fluctuations in a currency’s value often lead the issuing country to invalidate high-denomination notes, potentially rendering stored currency worthless.
According to Bostan, Pakistani exporters are now receiving Iranian rials in exchange for goods sent to Iran, which are later sold in the local market, while importers purchase rials to procure goods from Iran. Experts warn that currency investments in uncertain situations can be risky without full information and careful consideration.
