Pakistanis buy 60 billion Iranian rials in two days as currency gains on US-Iran deal

Demand for the Iranian rial has rebounded in Pakistan’s open currency market, pushing up its value after the United States and Iran agreed to halt the Middle East conflict. The price of 10 million Iranian rials increased by Rs2,000 to Rs3,000 over the past two days and is now trading between Rs3,500 and Rs4,500 in the local open market, according to a report. 

Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan said that Pakistanis had purchased 60 billion Iranian rials worth around Rs250 million during the two-day period.

He said demand for the currency had returned after a gap of nearly three months, with most buyers coming from the lower-middle-income segment.

The renewed buying followed the US-Iran agreement and reduced uncertainty surrounding global oil prices.

Bostan said demand for the Iranian currency had also increased around two and a half months earlier after the US president announced a ceasefire.

At the time, the value of 10 million rials rose from a few hundred rupees to around Rs12,000.

However, subsequent Israeli and US strikes on Iran triggered a decline in the rial, bringing the price of 10 million rials down to between Rs2,000 and Rs3,000 two days ago.

Fresh demand has since helped the currency recover, although Bostan advised buyers to remain cautious because the United States and Iran have only agreed to a deal and have yet to sign a final agreement.

He said speculative trading and sharp price movements could continue until the agreement is formally concluded.

According to Bostan, the Iranian currency’s underlying value will become clearer after the United States and Iran sign the final agreement.