The value of the Iranian currency has risen sharply in Pakistan’s open currency market following the signing of a memorandum of understanding (MoU) between the United States and Iran. The development, combined with declining global oil prices and improving market sentiment, has increased demand for Iranian rials among local buyers.
According to Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan, the value of 10 million Iranian rials has increased by Rs2,000 to Rs3,000 over the past few days, reaching between Rs3,500 and Rs4,500 in the local market. The rise comes after months of volatility driven by regional tensions and uncertainty surrounding Iran’s economic outlook.
Malik Bostan revealed that Pakistanis purchased a total of 60 billion Iranian rials during the last two days, with the transactions estimated at around Rs250 million. He noted that demand for the Iranian currency has returned after nearly three months, with most buyers belonging to the lower and middle-income segments seeking investment opportunities.
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He recalled that around two and a half months ago, speculation surrounding a possible ceasefire had pushed the value of 10 million Iranian rials from just a few hundred rupees to nearly Rs12,000. However, subsequent military tensions involving Iran, Israel, and the United States caused the currency to lose much of its value, falling back to between Rs2,000 and Rs3,000 just days ago.
The recent increase in demand reflects growing optimism after the latest diplomatic breakthrough between Washington and Tehran. Despite the recovery, Malik Bostan advised investors to remain cautious, stressing that only a memorandum of understanding has been signed so far and a final agreement is still pending. He warned that speculation and price fluctuations could continue until a formal deal is reached between the two countries.
According to Bostan, the true value and long-term direction of the Iranian currency will become clearer once a final agreement is officially signed and implemented by both sides.
