ISLAMABAD: The Iranian rial has strengthened significantly against the Pakistani rupee despite the ongoing war, mainly due to heavy buying by investors and Iran’s decision to impose a toll tax of up to $2 million on ships passing through the Strait of Hormuz.
In an interview with BBC, Malik Bostan, Chairman of the Exchange Companies Association of Pakistan, revealed that before the conflict, one crore Iranian rials were available for Rs2,500 in Pakistan. Now, the same amount fetches Rs10,000.
He explained that people are investing heavily in the Iranian currency, expecting the war to end soon and international sanctions on Iran to be lifted, which would lead to a further sharp rise in its value.
Malik Bostan added that Iran’s move to charge tolls on vessels transiting the Strait of Hormuz — with payments required in Iranian rials or Chinese yuan — has also boosted the rial’s strength.
It is worth noting that since the start of the war between the US, Israel, and Iran more than a month ago, the Iranian rial has recorded a substantial increase in value against the Pakistani rupee.
