It is no secret that Iran’s currency, the
Iranian rial, has been in trouble. At the end of 2011, the United States and
European Union imposed sanctions to increase financial pressure against Iran to
abandon its nuclear power program. The rial has lost up to 80 percent of its
value since the US- and EU-imposed sanctions. The United States has had an
infamously rocky relationship with Iran in the past, but a deal was struck in
July of this year to eventually lift the sanctions against Iran. This gives
Iran access to at least $100 billion in frozen assets, as well as the ability
to export oil. The sanctions relief would also give foreign companies the
ability to invest in Iran and restore the country’s access to the foreign
banking system.
While it may take Iran a few years to reap
the benefits of this agreement, Iran is a nation ripe for investment
opportunities because it is populated with young, well-educated citizens in
addition to extensive oil and natural gas resources. One exciting opportunity
in relation to Iran is investing in Iranian currency, the rial. Why would
anyone be interested in buying Iranian rial when the currency has lost so much
value?
This sanctions lift will likely increase
the value of the country’s currency suffering from inflation. Before the
sanctions were put in place, Iran’s currency was historically fairly stable in
relation to the US dollar. In 2011, the Iranian rial was 1,750 to one US
dollar. Today the rial’s value is 29,967.04. After the sanctions lift, it is
very likely that Iran will see a dramatic rise in the rial’s value against the
US dollar. This is an ideal time to buy Iranian rial before its value
dramatically increases.
Similarities can be drawn between the
hyperinflation Germany battled after World War I and the status of Iran’s
currency today. The first half of 1922 saw the German mark stable at 320 to a
US dollar. When international reparations conferences produced no solutions,
the mark began to fall and by November of 1923 the mark’s value had dropped
dramatically to 4,210,5000,000,000 to a US dollar. However, within a few years,
Germany managed to stabilize its currency and today Germany is one of the
strongest economies in Europe.
In the long term, Iran is a good country to
invest in, however, options are limited in the short term. Buying Iranian rial
is one way to invest in Iran, and in Iran’s likely prosperous future while
securing a portion of that prosperity for yourself. Right now prices are down,
which means it is the best time to buy Iranian rial and capitalize on that
investment in the future which makes the Iranian rial the hottest currency of
2015 and likely to be for years to come.
Copyright BuyNewDinar
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