Lifting of the sanctions means new business opportunities in Iran, so is it a good time to invest in Iranian Currency?
Following the Nuclear Deal, Iranian market is opening to the world for business. Although Iran has been keeping itself away from World Trade Organization for the past 37 years, currently, the reformed government is showing interest in opening its doors to the world. So many are pondering if it is a good time to invest in Iranian Currency.
Iran is a vast country with healthy demographics and many natural resources. Since Iran’s Central Bank never used international World Bank funding, it has a very low debts and having the potential to becoming the second or third oil producer of the OPEC, its financial future is forecast to be very strong. It is surely one of emerging markets that everyone wants to invest in areas such as petrochemical production, stock markets, infrastructure development, and exports of goods and services. So is it wise to invest in Iranian Currency?
Currently, Iran has a high inflation and although the rial seems to be very weak in respect to the US dollars, but the economic reform plans are to remove extra zeros from the Rial and reduce inflation following a model used by Turkey few years ago. But Iran’s advantage over Turkey is that Iran has a high population of educated young capable work force and has the potential to become a major producer of European products for export to the Persian Gulf and Central Asia regions.
Alternatives to Invest in Iranian Currency
Due to current high inflation, it is not recommended to purchase and keep Iranian Currency as is, since it will depreciate and lose value against other currency as time passes. However, Iranian Central Bank offers investment interest rate to match the depreciation. Therefore, the better alternative is to invest in Iranian Banks that is considered a better alternatives to Invest in Iranian Currency. Iranian Banks guarantee up to 25% daily compounded interest rate to Certificate of Deposit of one year or more in Iranian Currency and 5% daily compounded interest rate to Certificate of Deposit of one year or more in Euro or US Dollars.
Another alternative is to invest in Stock Market or any partnership project such as House Complex Construction, since the minimum investment return rate considered in these investment calculations are minimum of 40% per year, otherwise, it is wiser with less hassle to invest money in guaranteed CDs that the banks offer.
There is more information from Market Watch that you can do more search on the topic. All said, still you have to consider possible risks and their impact and probability in any investment opportunity and no one is able to guarantee and predict what the future holds.