Experts suggest that Future of Iranian Rial is bright in Pakistan as currency those who invested in Iranian Rial currently earning four times high that than the amount invested in Iranian currency.
According to recent reports there has been an extraordinary increase in the demand for the Iranian rial in Pakistani currency markets. The use of the rial is increasing due to the promotion of legal trade at Taftan and other border points.
“Currency experts say that the Iranian rial could emerge as a strong regional currency if sanctions on Iran are eased or a regional trade bloc such as the SCO) becomes active. The main reason for its ‘bright future’ in Pakistan is its geographical proximity and access to cheap energy.”
Pakistan and Iran have also started working rapidly on a currency swap agreement to reduce dependence on the dollar. Experts believe that if both countries trade in their local currencies (rupee and rial), the demand for the Iranian rial will increase, which will improve its reputation.
Pakistan has recently issued a new executive order for a barter system with Iran. Under this system, the problem of payments will be resolved and the target of taking the trade volume to $10 billion has been set, which will increase the importance of the rial.
Although Rial has depreciated in the international market, it is being sold in Pakistan at nearly four times the global rate. While the price for 10 million rials is only about 2,110 rupees worldwide, buyers in the Pakistani open market are being charged up to 10,000 rupees for the same amount.
Current market data indicates that one Pakistani rupee is equivalent to 1,000 Iranian rials locally, with 1 million rials fetching around 1,000 rupees. Economists attribute this significant disparity to the increasing demand and supply of rials in the market, which has resulted in a considerable gap between global and local rates.
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