Foreign exchange is becoming more popular, so many investors are looking for currencies that can turn a lucrative profit. If you’re one of them, you’re in luck. The Iranian currency can be a wise investment, and we’ll discuss why.
What Is the Iranian Rial?
The Iranian rial is the official national currency of the Islamic Republic of Iran. It was first introduced to the public in 1798. In 1825, the rial was replaced by the Qiran at an exchange rate of 10 rials for 1 qiran. A little more than a century later, the Rial became Iran’s official currency. It replaced the Qiran in 1932.
As of writing, the said Iranian currency is made up of 100 subunits called dinars. However, dinars are not usually used due to the extremely low value of one Rial.
Iranian Rial has a forex code of IRR. This code is used by currency traders and investors when making transactions involving the Iranian currency.
How the Nuclear Deal Affected the Iranian Rial’s Performance?
Between 2010 and 2015, Iran had been sanctioned by foreign powers, including the United States and the European Union. These sanctions adversely affected the exchange rate of the Iranian Rial.
For instance, the US had instituted about four acts sanctioning Iran. These acts have had an adverse effect on the Iranian currency and the entire forex market.
Fortunately, in 2015, Iran agreed on a long-term deal with world powers including the US.
The so-called Nuclear Deal came after years of tension caused by Iran’s alleged development of nuclear weapons.
Under the agreement, Iran must limit its sensitive nuclear programs. The country must also allow international bodies to inspect its nuclear activities. In return, economic sanctions on Iran would be lifted. This equated to billions of dollars in sanction relief.
In particular, Iran gained access to more than $100 billion in assets which were frozen overseas. The country was also able to continue selling oil on international markets and use the global financial trading system.
After the Nuclear Deal was signed, investors’ confidence in the Iranian rial rose. Both local and foreign investors started buying Iranian Rial.
The Iranian currency became the best-selling currency shortly after the Nuclear Deal. Thousands of traders were buying it. Specifically, investors saw the Iranian Rial as a long-term investment.
How Trump’s Actions Affected the Iranian Currency?
Between 2015 and 2018, the Iranian Rial was doing well in the forex market. Both long-term and short-term investors gained profits by trading the Iranian Rial.
However, in May 2018, then US President Donald Trump abandoned the Nuclear Deal. In November that same year, Trump reinstated sanctions affecting Iran and the states that trade with it.
This led to a negative effect on the Iranian currency, pushing the Rial’s value to record lows. It also drove away foreign investors and triggered various protests.
In particular, the Iranian Rial to USD value decreased by 70% since May 2018. On the bright side, it seems that Biden’s presidency is about to resurrect the glory of the Iranian Rial.
Biden’s Bid to Restore the Iranian Nuclear Deal
One of Biden’s vow after winning against Trump was reviving the Nuclear Deal with Iran. Due to this, the future seems bright for the Iranian currency.
According to Bloomberg, the Iranian Rial had a 17% gain against the US dollar during the first few weeks of the year.
As of writing, the Iranian Rial has a total of 25% gain against the US dollar. The upward trend is expected to continue as Biden pushes to revive the Nuclear Deal.
In addition, Biden’s presidency opens the possibility that Iranian oil payments trapped in foreign bank accounts will be released. This will ease Iran’s foreign currency supply crisis and hopefully restore the Iranian currency’s glory.
Is Iranian Rial a Wise Investment?
Yes, it is. As stated earlier, both long-term and short-term investors gained significant profits after the Nuclear Deal was closed.
The same is expected to happen after Biden revives the said deal. While there is no certainty that the deal will be revived soon, the fact that Biden wants to revive it is making the Iranian currency’s performance better.
Furthermore, an increasing number of investors currently buy Iranian Rial under the table. This shows that people are gaining confidence and trust in the Iranian currency.
The Iranian currency is also a great option for those who cannot afford to acquire high-value currencies yet. For this reason, investors are seeing the Iranian rial as an affordable asset.
On top of that, the Iranian currency has low historical volatility. This means that the Iranian Rial’s value doesn’t tend to change quickly and unpredictably. It poses lower risks as well.
Additionally, the currency’s excellent performance is expected to continue and should become better once Biden finalizes the Nuclear Deal.
Given these data, the Iranian Rial is indeed a wise investment. In fact, we’re looking forward to your success via the Iranian Rial.
Here’s a summary of why the Iranian Rial is a great investment:
⦁ Iranian Rial to USD gain totaled 25% within the first 3 months of 2021.
⦁ Biden’s bid to restore the Nuclear Deal puts the Iranian currency in a great position.
⦁ Iranian Rial is an affordable asset.
⦁ The Iranian currency has low historical volatility.
⦁ Investors are gaining more confidence and trust in the Iranian currency.
Disclaimer: The Iranian Rial, like any other investment, involves risks. Carefully assess your finances before investing in anything.
Where to Buy Iranian Rial
Iranian Rial might be a great investment, but you have to be extremely careful where you buy it from. Only buy Iranian rial from legal and experienced companies. It is wise to wait Biden's admin to revive the Nuclear deal before stepping in any sort of investment with Iran's currency for the time being.
Sure you are confused about the Iranian rial and toman. You are surely thinking that those are two different words with different meaning. These are the Iranian words that are used for their currency. So, there is no difference between rial and toman. Official currency in Iran is rial. The word toman is used by the local people, especially in the daily based payments and for sure, sometimes it is confusing for the ones that are not Iranians. The common bill these days is 10 000 rial bill, but the local people use tomans, which is deducting one zero. A 10 000 rial bill is called 1000 tomans bill. So, 10 000 rial is equal to 1000 toman and that is approximately $1 . We have to say that official dollar exchange rate is somewhere between 1030 and 1040, which fluctuates a bit up or down. The fluctuations are bigger in the free market. The common types of rial bills are 500, 1000, 2000, 5000, that are available both in coins and bills, and just available in the bills there are 10 000, 20 000, 50 000, 100 000. When the tourist are coming and the passing by travelers are exchanging they usually change the most in 50 000 bills. Before there were available the 100 and 250 bills and coins. Today, you can sometimes, still find here and there these 100 and 250 bills or coins. They were used to function as dime and quarters. For example, we will make you a clear image. For example, one hamburger costs 2000 tomans, which is equal to 20 000 rials and that is equal to $2. A mineral water bottle cost 500 toman = 5000 rials = 50 cents. And the exchange rate market is making quite easy and simple to pay for food or any other service when you are a tourist or a traveler in Iran. But one thing you have to remember. Never mix up the rials and toman. They are same but not same at some point. In back and official working places the official currency is rial and that is only acceptable currency there. In the everyday life, and in free market the toman can be used properly.
Finally, we come to cheque Rial which came as a result of the sanctions imposed by USA against Iran back in Trump Era. These are inflation cheque money and there are two cheque Rial denominations: the 500K Bill and the one Million Bill ( which is the largest denomination of Iranian currency. These two bills came to cover the market need for a large bill increase purchasing power.