ISLAMABAD: Iran’s currency has fallen to a new record low against major foreign currencies, with the US dollar surpassing the 2 million Iranian Rial mark, according to Iranian media reports.
The Iranian Rial has remained under intense pressure, with the dollar climbing sharply in the open market. The greenback was trading at around 1.865 million Rial at the beginning of last week, meaning it has gained more than 7% in less than a week.
Compared with the same period last year, the dollar has now more than doubled in value against the Rial, when it was trading at approximately 958,000 Rial.
Earlier on Sunday, the dollar was reported to be trading at around 1.98 million Rial in Iran’s open market. The British pound stood at approximately 2.70 million Rial, while the euro was trading near 2.31 million Rial.
The latest figures highlight continued pressure on the Iranian currency, as foreign currencies reach fresh highs in the open market.
The developments could also affect Pakistani traders and investors who recently bought Iranian Rial amid expectations of improved economic and trade conditions between Pakistan and Iran. According to the report, Pakistanis purchased around 300 billion Iranian Rial several weeks ago, following positive signals surrounding peace talks between the United States and Iran and the reopening of the Strait of Hormuz, which was expected to help normalize global trade activity.
Around two months ago, 10 million Iranian Rial were reportedly being sold for between Rs4,500 and Rs5,000 in Pakistan’s open market, prompting a number of Pakistanis to invest in the Iranian currency.
Currency market experts and dealers had warned traders involved in Pakistan-Iran trade that significant volatility could emerge because of the substantial gap between official and unofficial exchange rates for the Iranian Rial.
The latest plunge underscores the risks faced by investors holding the currency as Iran’s foreign exchange market continues to experience sharp fluctuations.
