Why Should I Buy Iranian Rial?
September 28, 2015 in Business
Currency Exchange Scandal by PayPal, Amazon and eBay With Millions In Iranian Rial Sales after reading this article I was afraid of dealing with foreign exchange because of the elligle acts attempted by the PayPal and two other big fishes and the question arose,
Should I buy Iranian Rial?
The same as it is with any kind of business decision, before you decide to buy Iranian Rial it’s best to do your own homework and consult with trusted professionals. Here are some of the factors to keep in mind:
Iran’s economic growth
Expected easing of trade restrictions
Improving relationship between Iran and the U.S.
Government monetary policy
Development of the Iranian oil industry
Buy Iranian Rial from Currency Liquidator
*At this time Iranian Rial is not available for sale – this is pending the lifting of International Sanctions
Just like it is with anything else in life, knowledge is the key to winning when you buy the Iranian Rial (IRR). The more you learn about Iran’s economy and currency before you buy, the more successful you’ll be later. This article covers a broad history of Iran and its currency.
Of course, it’s easier to be successful when you have in depth information and you work with a leading currency dealer. A good dealer will make sure that you receive the best value, and will stand behind their currency with a full guarantee of authenticity and guaranteed future exchange.
Regardless of whether you’re buying the Iranian Rial because you’re fascinated with the history and culture of this ancient land, or whether you’re looking to a future currency exchange with Currency Liquidator, there’s plenty to know about Iran’s economy and currency.
International sanctions are expected to be lifted
In the past few years, the U.S. and other Western nations have softened their previous hard line political stance regarding Iran’s independent nuclear program.
American negotiators are currently at the point of agreement with Iran, and are already taking steps toward easing the trade restrictions.
The U.S. and other global powers have apparently realized that they must work with Iran instead of against it.
As soon as the sanctions are lifted the Iranian petroleum industry should quickly expand.
According to Reuters “Billions Up for Grab” That’s because the country will be able to take advantage of the availability of new oilfield technologies as well as repair parts for older equipment.
In any event, the country is inevitably becoming a regional economic and political giant in spite of the obstacles.
That’s why the Rial has become especially interesting to observers who are awaiting the full normalization of Iranian trade.
Nowadays an increasing number of people are recognizing Iran’s potential economic success. Iran owns about one-fifth of the world’s known petroleum reserves, and as a result the country’s economy has huge potential.
Most international oil companies have been idle in Iran since the trade sanctions were placed years ago. They’re eagerly watching as U.S. and international negotiators are moving inevitably toward a diplomatic solution that will open Iran’s borders to global trade again.
Iran has huge oil reserves which have barely been explored to date. Once Iran’s oil industry has access to the new horizontal drilling technologies and fracking methods, the country’s petroleum production and exports should rise significantly.
And, regional political tensions have eased in recent years. Since the ouster of Saddam Hussein from neighboring Iraq in 2003, Iran has become downright friendly to that new democracy.
In fact, during 2014 and 2015 Iranian and Iraqi military forces have worked closely together to defeat ISIS.
Overall, the country’s economy is booming. Iran’s cities are experiencing plenty of new building construction and development, and the government is funding infrastructure projects ranging from railroads to public housing.
Iranian Rial Currency and some Background
The first rial was introduced back in 1798 as a coin. In 1825 the rial was replaced by other coinage, but it was once again issued and circulated as the first modern Rial beginning in 1932.
Back then, the exchange rate with the British Pound equaled about 60 Rial per each 1 Pound.
During the years before World War II, the Rial’s value ranged between 80 Rial per Pound down to 141 Rial per Pound in 1941.
Beginning in 1945 the country pegged the Rial to the U.S. Dollar at an exchange rate of about 32 Rial per Dollar. In 1975, mostly because of increasing political tensions between the U.S. and Iran, the peg was removed.
In 1979 the Rial was equal to USD $0.015, about a penny-and-a-half per Rial. After the Islamic revolution which ousted the Shah and instituted a Shi’ite government, a huge amount of capital flowed out of Iran because of international fears about the new religious government.
Nowadays a single Dollar buys approximately 29,000 Iranian Rial, which is far less than historical price levels have shown. That’s because the Central Bank of Iran tightly controls the pricing of the Iranian Rial.
Even though the pricing is described as being set at a market rate by inter-bank trading, still, the Central Bank is known to intervene in the marketplace and spend freely to maintain the Rial at a nominal weak rate.
This is part of the government’s strategy to boost the competitiveness of its non-oil export industries. Of course, these interventions in the foreign-exchange marketplace are funded by the nation’s hefty oil export revenues.
Iran produces large quantities of oil and gas for domestic use and export. And, its economy is maintaining in spite of the trade sanctions.
It’s easy to imagine that when the U.S. finally lifts those sanctions, as is expected very soon, the economy will boom and the Iranian economy will shine brightly. That’s why so many people feel so strongly about Iran’s economy and are so enthusiastic about the country’s future