Speculative trading and renewed cross-border activity have driven a sharp rise in demand for the Iranian riyal in Pakistan, with market participants betting on potential gains linked to ongoing diplomatic developments involving a possible US–Iran agreement.
According to estimates by the Exchange Companies Association of Pakistan (ECAP), Iranian currency worth up to $6 million is being traded daily in local markets.
The riyal has reportedly surged by as much as 50% since reports emerged suggesting progress in diplomatic efforts, which some believe could be brokered with Pakistan’s involvement.
Market data indicates the currency has reached as high as Rs15,000 per 10 million Iranian riyals, reflecting intense speculative interest rather than formal financial stability.
Traders and investors say the demand is being driven largely by expectations that easing tensions between Washington and Tehran could significantly boost the riyal’s value. Many small-scale investors are also entering the market in hopes of quick profits due to the wide gap between official and open-market rates.
At the same time, increased cross-border trade, particularly informal imports of fuel and essential goods from Iran, has also contributed to rising demand for the currency.
