The dollar and Iraqi markets: Will the gap widen with the escalation of regional crises?
The dollar and Iraqi markets are facing a new wave of volatility amid the ongoing escalation between Washington and Tehran, which raises concerns about the widening gap between the official price and the parallel market price.
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Economic expert Nasser Al-Tamimi confirmed that the repeated escalation between the United States and Iran directly affects the movement of the dollar in global markets, as it is considered the primary “safe haven” during periods of geopolitical tensions.
Al-Tamimi said that this type of crisis usually leads to clear fluctuations in the dollar exchange rates globally, the severity of which varies according to the nature of the escalation and its duration, stressing that the effects of these transformations do not remain confined to major markets, but rather gradually extend to economies linked to the dollar, including the Iraqi economy.
He explained that the impact of regional and international crises appears indirectly in the Iraqi market, through foreign trade channels, financial transfers and import activity, in addition to the local market being affected by internal monetary policies and the procedures of the Central Bank of Iraq in managing foreign reserves.
He then added that the gap between the official exchange rate and the parallel market rate represents one of the most prominent chronic problems in Iraq, noting that tensions related to the US-Iranian issues contribute to increased speculation and higher levels of volatility in the market, but they are not the only factor behind the widening of this gap.
parallel market
Al-Tamimi pointed out that the parallel market reacts more strongly to major global developments, such as economic sanctions, wars, and disruptions to financial supplies, as these factors lead to increased demand for the dollar as a tool for hedging and preserving value.
He explained that any increase or fluctuation in the price of the dollar is directly reflected in the purchasing power of the Iraqi citizen, through an increase in the prices of imported goods, especially food, consumer goods and building materials.
He stressed that vital sectors such as trade , contracting and industry are quickly affected by any fluctuations in the exchange rate, which doubles the economic pressures on the local market.
He also stressed that the stability of the exchange market in Iraq remains dependent on the ability of monetary policies to reduce the gap between the official and parallel rates, strengthen official financing channels, and limit the impact of repeated external shocks.
The Iraqi economy is heavily dependent on the dollar for foreign trade and imports, making the local market extremely sensitive to any global financial or political turmoil.
Over the past years, Iraq has witnessed frequent fluctuations in the exchange market as a result of internal and external factors, including sanctions on Iran, tightening controls on financial transfers, as well as regional crises that have increased the demand for the dollar within local markets.
When will dollar shipments arrive in Baghdad? Washington ignores the Central Bank, while al-Zidi prioritizes it.
The Asharq Bloomberg website published a report in which a senior Iraqi official, who declined to reveal his identity, stated that addressing the crisis of delayed dollar shipments from the United States to Baghdad, amounting to about $10 billion annually, will be among the priorities of Ali al-Zaidi's government, in order to avoid destabilizing the exchange market in light of the sharp decline in oil exports due to the repercussions of the Iran war. He confirmed that the Iraqi authorities are trying to find out the reasons for the delay in the latest shipments, but the Central Bank has not yet received any response from the American side.
Earlier, the administration of US President Donald Trump suspended dollar shipments to Iraq and froze funding for security cooperation programs with Baghdad, pressuring it to dismantle Iranian-backed armed factions. The US Treasury Department blocked an air shipment of about $500 million in Iraqi oil revenues held in accounts at the Federal Reserve Bank of New York, according to the Wall Street Journal.
According to banking expert Mustafa Hantoush, speaking to Asharq Bloomberg, Washington is expected to resume sending shipments soon, based on a similar precedent in 2023, at a time when the International Monetary Fund expects the Iraqi economy to shrink by 6.8% this year, with central reserves amounting to $100 billion before the war.
A senior Iraqi official said that addressing the crisis of delayed dollar shipments from the United States to Baghdad will be a priority for the new government to avoid destabilizing the exchange market, especially after the sharp decline in the country's oil exports due to the repercussions of the Iran war.
Iraq receives a portion of its oil revenues in the form of cash shipments in US dollars, estimated at around $10 billion annually. These funds are distributed in installments arriving via chartered flights at Baghdad Airport, while transfers related to financing foreign trade—which have not been affected by the delays—are managed through official banking channels.
The government official, who spoke to Asharq on condition of anonymity, confirmed that the Iraqi authorities are indeed trying to find out the reasons for the delay in the latest shipments, but the Central Bank has not yet received a response from the American side.
The US State Department confirmed in response to an inquiry from Asharq News' Washington bureau that dollar shipments to Iraq remain "suspended." It referred any further inquiries to the Treasury Department and the Central Bank of Iraq.
The Treasury Department did not respond to Al-Sharq's questions about the crisis, while officials at the Central Bank of Iraq could not be reached for comment.
Reuters reported in late April, citing several sources, that the administration of US President Donald Trump had halted a cash shipment worth about $500 million and suspended part of its security cooperation with Baghdad in an attempt to pressure the Iraqi government to reduce the influence of Iranian-backed armed factions, which have launched several attacks on Gulf states since the start of the conflict at the end of February in support of the regime in Tehran.
The stability of the dinar is at stake
Although the value of the shipment represents only a small fraction of the total demand for dollars in the Iraqi market, its delayed arrival and the ongoing crisis could affect the stability of the dinar and widen the gap between the official exchange rate and the parallel market rate, which has only fluctuated within a narrow range since the outbreak of the conflict. Therefore, the official confirmed that the issue will be a priority for Prime Minister-designate Ali al-Zaidi as soon as he officially assumes office. The Iraqi parliament is scheduled to vote tomorrow, Thursday, on granting confidence to the new government.
Iraq is among the countries most affected by the war in the region. The International Monetary Fund (IMF) projects a 6.8% contraction in its economy this year due to its reliance on oil exports through the Strait of Hormuz, which account for 90% of government revenue. A senior IMF official told Asharq Al-Awsat last month that Baghdad's options for dealing with the crisis until a new government is formed focus on reducing spending and temporarily drawing on the central bank's reserves, which stood at approximately $100 billion before the war.
Trump had invited al-Zaidi during a phone call at the end of last month to visit Washington after the government was formed, and wished him success “in forming a new government free of terrorism that can provide a brighter future for Iraq and the United States.”
The historical roots of the crisis
Iraqi banking expert Mustafa Hantoush told Asharq that he expects Washington to resume sending dollar shipments soon. He added that the United States had previously suspended these shipments temporarily in 2023 without publicly stating the reasons.
The story of relying on the United States to send dollar shipments to Baghdad dates back to 2003, when then-US President George W. Bush issued an executive order during the American occupation following the overthrow of Saddam Hussein's regime. This order mandated that all of Iraq's oil revenues be transferred to a special account called the "Development Fund for Iraq," managed through the Federal Reserve Bank of New York, ostensibly to protect the funds from lawsuits and use them for reconstruction. Since then, the executive order has been renewed annually, meaning that US approval is required before any funds can be transferred to Baghdad.
Reuters: Iraq seeks loan from IMF
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A source close to the International Monetary Fund (IMF) reported on Thursday that Iraqi officials have contacted the Fund regarding financial assistance as a result of the ongoing conflict in the Middle East.
A Reuters report, translated by the Information Agency, stated that "the source explained that initial talks took place last month during the IMF and World Bank Spring Meetings in Washington, and that discussions are still ongoing regarding the amount of financing Iraq needs and how any loan would be structured."
The report added, "The war that began on February 28 with a large-scale US-Israeli bombing campaign against Iran, which led to Tehran closing the Strait of Hormuz, has shaken the entire Middle East region, causing severe damage to infrastructure and economies."
The report indicated that "Iraq has been severely affected by the war, as most of its oil exports—which represent almost all of the government's revenue—have been cut off due to the closure of the vital waterway, which previously transported oil
Al-Zaydi: Economic reform, arms control, and e-governance are our government's top priorities.
Prime Minister Ali Faleh al-Zaidi announced his government's priorities on Thursday, while also calling on diplomatic missions to resume their work in Baghdad. The Prime Minister's Media Office stated in a press release received by Mawazin News that "Ali al-Zaidi reviewed the new government's ministerial program, emphasizing its determination to fulfill the aspirations of the Iraqi people, placing the citizen's interest among its top priorities." According to the statement, al-Zaidi said, "The path to reform begins from within by confronting corruption and administrative inefficiency."
He indicated that he would face the challenges based on his belief in the capabilities and patience of the Iraqi people, transforming crises into opportunities and setbacks into milestones in making a difference to enhance services, build robust institutions, and propel Iraq towards e-governance and e-government. Al-Zaidi outlined his steps in "three tracks: first, economic reform and development through economic diversification, genuine investment, and a sound financial and banking system; second, social development, establishing social justice, caring for the most vulnerable groups, protecting children, and empowering women; and third, reforming the security apparatus by monopolizing weapons in the hands of the state, strengthening the capabilities of the security forces, and consolidating their authority." The citizen's trust in democracy."
He noted that "Iraq, with its deep-rooted civilization, human and cultural diversity, and the supreme religious authority it represents, qualifies us to stand and restore the government's standing." He called on all diplomatic missions to "return to their work in Baghdad," and expressed his gratitude to the government of Mohammed Shia' al-Sudani.
Jamal Kojer reveals grim scenarios for confronting the financial collapse in Iraq
Dr. Jamal Kojar, a member of the Finance Committee in the Iraqi Parliament, sounded the alarm about the country's economic situation, revealing a "major failure" in government financial management, and warning that Iraq is now burdened by accumulated debts amounting to 138 trillion dinars.
Kojer confirmed in a special statement to Kurdistan 24 that the three-year budget strategy adopted by the government did not achieve the desired financial stability, but rather turned into a large burden after the "estimated deficit" turned into a "real deficit," noting that the annual deficit reached 64 trillion dinars as a result of spending most of the financial allocations for the three years in advance.
The Iraqi MP described the next five or six months as a "survival or annihilation" phase for the Iraqi economy. He warned that if incomes remain at their current levels, the government will face harsh and difficult choices to bridge the financial gap, including:
Withdrawing from foreign currency reserves.
Resorting to printing paper money.
Increasing taxes on citizens.
The option of adjusting the dinar's exchange rate against the dollar again.
Downsizing the government and transferring unproductive institutions to the private sector. Regarding
the spending mechanism and the fate of the 2024 budget
, and concerning the current year's budget, Kujer explained that the passage of six months of the fiscal year without the approval of a detailed budget will force the government to rely on a 1/12th system to secure salaries and essential operating expenses only. He anticipated postponing the approval of budgets for investment and service projects until next year, given the legal and financial difficulties currently facing the drafting of a comprehensive budget law.
It is worth noting that the budget law, after being prepared by the Ministries of Finance and Planning and discussed in the Cabinet, is supposed to be sent to Parliament for review by the Finance Committee before being put to a vote, which faces significant complications in light of the dire figures revealed by Kujer.
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As the United States intensifies its pressure on Iraqi political forces to disarm pro-Iranian armed factions and curtail their influence within state institutions, an important question arises regarding the political weight of these factions and whether it is possible to end it as well, or at least reduce it to the maximum extent.
A source within the coordination framework told Al-Hurra that the United States has vetoed the participation of six armed factions, which have political wings, in the upcoming government scheduled to be announced on Thursday, led by Prime Minister-designate Ali al-Zidi.
The source, who asked not to be named, confirmed that the American veto arrived via a message that reached a group of leaders of the coordination framework, without revealing the names of these factions.
A State Department spokesman told Alhurra, in response to a question about Washington’s vision for the shape of the next government, that the United States is closely monitoring the process of forming the Iraqi government, stressing that “terrorist militias” should have no role in state institutions.
The US State Department has not commented, as of the publication of this report, on a request sent by Alhurra regarding the existence of a “veto” message on the participation of six factions in the next government.
The results of the last elections held last November and the subsequent political alliances at the beginning of 2026 revealed an unprecedented growth in the political power of these factions, in a move that clearly aims to strengthen the political role and not be satisfied with military power alone.
These factions benefited from the boycott of the elections by their traditional rivals, most notably the leader of the Sadrist movement, Muqtada al-Sadr, and from the amendments made to the election law, in order to expand their parliamentary and governmental presence and transform their security and military influence into a firmly established political force within the Iraqi system.
According to a count conducted by Al-Hurra, armed factions active in Iraq have won nearly a quarter of the seats in the Iraqi parliament, with 80 deputies out of a total of 329 seats.
All these factions are part of the Coordination Framework Alliance, which includes Shiite forces loyal to or close to Iran. It is the largest bloc in parliament with about 180 deputies and is constitutionally entitled to nominate the head of government.
This large political representation within the coordinating framework (about 40 percent) means that these factions have gained direct political representation within the political system, which allows them to influence legislation, choose the government, and control the security and economic levers of the state.
Which of these factions are the most prominent, and how is their electoral weight distributed within the Iraqi parliament?
Asa'ib Ahl al-Haqq
The “Sadiqun” movement, the political wing of “Asa’ib Ahl al-Haq” led by Qais al-Khazali, is the most prominent phenomenon in the 2025 elections, having achieved a historic leap from 9 seats in 2021 to 27 seats.
This growth reflects the strategy of Khazali and his faction, both of which are designated as terrorists in the United States, to move from military effort to political action, taking advantage of the penetration of its cadres into the joints of the state.
The “Sadiqun” movement came in second or third place in most of the central and southern governorates, and topped the list in Babylon with more than 79,000 votes.
According to sources within the coordination framework who spoke to Al-Hurra, the movement expressed its readiness to hand over its weapons to the Iraqi government, cease its military activities, and devote itself to political work, but Iran is trying to prevent this step.
Badr Organization
The Badr Organization, led by Hadi al-Amiri, is the oldest Iraqi faction linked to Iran, having been founded during the Iran-Iraq War in the 1980s with direct support from the Iranian Revolutionary Guard.
The organization has a political wing with broad influence within parliament and state institutions, especially the Ministry of the Interior and security services.
Estimates of the 2025 election results indicate that Badr obtained, directly or through alliances, approximately 15 to 18 seats, and maintained its broad influence within the coordinating framework.
The importance of Badr lies in its traditional control over security positions and sensitive parliamentary committees, as one of its leaders, Karim Aliwi Al-Muhammadawi, chaired the parliamentary Security and Defense Committee in the previous session.
Giving Movement
The movement led by Popular Mobilization Forces chief Faleh al-Fayyad won 10 seats in the Iraqi parliament. It is part of the Reconstruction and Development Alliance, headed by outgoing Prime Minister Mohammed Shia al-Sudani, whose bloc won the most seats in the elections with 46.
In 2021, the US Treasury Department imposed sanctions on al-Fayyad, accusing him of involvement in “serious human rights abuses” targeting protesters in October 2019.
National Support Gathering
Or the “Bilad Sumer” group, led by the commander of the “Jund al-Imam Brigades,” Ahmed al-Asadi, won six seats within the Reconstruction and Development Alliance led by al-Sudani.
Al-Asadi currently serves as the Minister of Labor and Social Affairs in Iraq since October 27, 2022, and previously served as the official spokesperson for the Popular Mobilization Forces, which includes armed factions loyal to Iran.
Al-Asadi founded the “Jund al-Imam” brigades in 2014, which are described as the military wing of the Islamic Movement in Iraq, and are linked to political partnerships with other factions such as “Ansar Allah al-Awfiya,” which is designated as a terrorist organization by the United States, according to the Washington Institute.
Loyalists Movement
The movement won 4 seats in the Iraqi parliament as part of the Reconstruction and Development Alliance led by Al-Sudani, and is considered the political wing of the “Loyal Supporters of God” faction led by Haider Al-Gharawi.
The group first appeared in 2013 as a political party in Maysan Governorate, and a year later it transformed into an armed faction while retaining its political wing.
Al-Gharawi and his armed group were first designated as terrorists by the United States in June 2024 for killing American service members and launching attacks on U.S. military bases and diplomatic facilities in Iraq, Jordan, and Syria. Last month, the United States offered a $10 million reward for information leading to his capture.
According to sources within the coordination framework who spoke to Al-Hurra, Al-Gharawi expressed his readiness during private meetings within the Shiite alliance to abandon the armed approach and engage in political work.
Victorious Alliance
The movement won 4 seats in parliament after the 2025 elections and is linked to the “Sayyid al-Shuhada Brigades” led by Abu Ala al-Walai, and is part of the State of Law Coalition led by former Prime Minister Nouri al-Maliki.
Al-Wala'i and his armed group have been on the US terrorism list since 2023 for planning and participating in attacks against Americans. Like al-Gharawi, Washington offered a $10 million reward last April for information leading to his capture.
Rights movement
The “Rights” movement managed to win 6 seats in the November 2025 elections. It represents the political wing of “Kataib Hezbollah” in Iraq, one of the most prominent pro-Tehran factions in Iraq, which has been classified on the US terrorism lists since 2009.
This is the second time the movement has participated in elections after winning one seat in the 2021 elections.
The armed group is led by Abu Hussein al-Muhammadawi, who is wanted by the United States and described by many as Iran's man in Iraq. He has been designated a terrorist by the United States since 2020.
Services Alliance
It is the political wing of the “Imam Ali Brigades” led by Shibl al-Zaidi and won 5 seats in the Iraqi parliament after the 2025 elections.
In 2018, the US Treasury Department placed al-Zaidi on its sanctions list for “smuggling oil for Iran, raising funds for Lebanese Hezbollah, and sending fighters to Syria for the Quds Force of the Iranian Revolutionary Guard.”
Al-Zurfi and Zebari in Washington... and discussions about Iraq at the Atlantic Council
Photos published on the sidelines of the events documented the presence of the head of the Alternative Alliance, Adnan al-Zurfi, and the former Iraqi Foreign Minister, Hoshyar Zebari, at the Atlantic Council seminar held in the American capital, Washington, whose discussions focused on the Iraqi issue. National Security Advisor Qasim al-Araji is expected to join them, as the Atlantic Council announced his participation in the “Iraq Dialogue 2026”.
Earlier, the Atlantic Council announced a visit to Washington by Iraqi National Security Advisor Qasim al-Araji to participate in a major conference entitled “Iraq Dialogue 2026.” Victoria Taylor, a former State Department official who has been in intensive contact with Baghdad recently, said that this occasion is “direct contact between senior Iraqi officials and policymakers in the United States, at a sensitive moment” in the relationship between Baghdad and the US administration. She also announced that participation in the dialogue is open via a registration link.
Victoria Taylor, who now serves as the director of the Iraq Initiative at the Atlantic Council, explained in a post on the X platform, translated by 964 Network , “We are pleased to welcome Qasim al-Araji, the National Security Advisor of the Republic of Iraq, to the Iraq 2026 Dialogue, which will be held in Washington, D.C.”
She added that “his participation reflects the role the conference plays as a high-level platform for direct communication between senior Iraqi officials and policymakers in the United States, at a sensitive moment in bilateral relations.”
"We support reform and criticize failure."
The National Line gives the Al-Zidi government a 90-day grace period under “monitoring”.
The National Line Movement congratulated Prime Minister Ali al-Zubaidi on Thursday (May 14, 2026) on gaining the confidence of the House of Representatives, stressing that this stage requires a real transition towards the project of building the state and consolidating sovereignty and social justice.
The movement announced that it had given the government a 90-day “evaluation period,” during which a specialized advisory committee would monitor and measure performance in areas including the state’s monopoly on weapons, strengthening sovereignty, managing the economy, protecting freedoms, as well as reforming education and caring for youth and women.
The National Line Movement affirmed that its position will be based on responsible support for every reform step, in contrast to frank criticism of any failure that affects the interests of the people, based on the principle that objecting to the mechanisms of administration is a partnership in protecting the security and future of the state and not an antagonism towards it.
The National Line Movement stated in a statement, a copy of which was received by 964 Network, that it “congratulates Mr. Ali Al-Zidi on gaining the confidence of the House of Representatives to assume the presidency of the next government, and affirms that this stage in the life of the country requires a real transition to the project of building the state and consolidating sovereignty and social justice.”
The movement explained that “based on our national responsibility, the National Line Movement explicitly announces granting the government an evaluation period of (90) days.”
He added that during this period, a “specialized advisory committee appointed by the movement will monitor and measure the government’s performance in the essential files that affect the present and future of Iraqis, foremost among which are restricting weapons to the state, strengthening national sovereignty, managing the economic file, protecting public freedoms, reforming the education sector, and caring for women and youth as the basic pillar of any modern national project.”
He stressed that the movement’s position “will be as the Iraqis have come to expect, based on responsible support for every genuine reform step, and on frank criticism of any failure or setback that affects the interests of the people and the state.”
He continued, “Based on our belief that objecting to the mechanisms of governance is not hostility towards the state, but rather a partnership in protecting its future, security, and sovereignty.”
The House of Representatives granted confidence to the government of Ali al-Zidi on Thursday (May 14, 2026), after voting on his ministerial program and 14 ministers, while it refused to grant confidence to the candidates for 5 ministries, and postponed the vote on the ministries of “Defense, Labor, Immigration, Youth and Sports”, in addition to the deputy prime ministers.
The House of Representatives session witnessed verbal clashes and a physical altercation during the vote on the ministerial candidates in Al-Zidi’s government, which prompted the Speaker of Parliament to adjourn the session.
Camera lenses captured a clash between MPs near the presidential platform, the reason for which is not yet clear. Meanwhile, the Secretary-General of Asaib Ahl al-Haq, Qais al-Khazali, appeared alongside the President of the Patriotic Union of Kurdistan Party, Bafel Talabani, and the President of the Babylon Movement, Rayan al-Kaldani, smiling at the parliament’s achievement in officially voting on al-Zidi’s government.
Venezuela launches comprehensive debt restructuring; liabilities estimated to exceed $150 billion
Bonds maturing in 2031 surpass 60 cents and reach their highest levels in a decade
Venezuela has launched a restructuring of its sovereign and state oil company (PDVSA) debt, a move that has sent bond prices soaring, in an effort to deal with what the government has described as unsustainable obligations.
The government said in a statement that the restructuring process would be "comprehensive and orderly," and would include sovereign debt and the debt of the state oil company, with the aim of achieving "significant relief" from the debt burden.
The statement added that the goal of the operation is to "put the economy at the service of the Venezuelan people," with any debt relief directed toward strengthening social welfare, supporting inclusive growth, and creating jobs. Venezuela also announced its intention to present its macroeconomic framework and public debt sustainability analysis to the international financial community next month, noting that it has appointed Centerview Partners as financial advisor for the process. The statement did not include details regarding the timeline, mechanisms for communicating with creditors, or the targeted terms of the restructuring.
Venezuela has one of the world's largest sovereign debt defaults, with total non-performing bonds—both sovereign and those of the state-owned oil company—amounting to approximately $60 billion. Analysts estimate that total liabilities, including arbitration rulings and accrued interest, could exceed $150 billion.
Venezuela, the South American oil-exporting nation, has defaulted on its foreign debt since 2017. A government statement issued late Wednesday said the country had previously demonstrated its solvency and willingness to meet its international obligations, but its ability to pay has been hampered since 2017 by financial sanctions.
Pramul Dhawan, head of emerging markets portfolio management at PIMCO, said: “We welcome the Republic’s willingness to engage with bondholders and meet their financing needs.”
He added: “After nearly a decade of default, restructuring is an important step forward. Any lasting solution must be comprehensive and based on a credible macroeconomic framework, giving creditors confidence in Venezuela’s ability to meet its restructured obligations.”
Strong bond gains
Data from the Tradeweb platform showed that some of Venezuela’s troubled dollar-denominated bonds have gained more than two cents, with the 2031 bond reaching about 60.486 cents to the dollar, its highest level in more than a decade.
Bonds issued by Venezuela’s state-owned oil company also recorded similar gains.
“With the appointment of financial advisors, the plan is moving at a faster pace,” said Ben Ramsey, an analyst at JPMorgan, in a note to clients. He added, “We are maintaining Venezuela’s market weight rating within our typical portfolio until a clearer assessment of the debt sustainability framework is obtained.”
Venezuela, the South American country with the world's largest proven oil reserves, owes its state oil company, Petróleos de Venezuela, an estimated $150 billion to $170 billion in unpaid debt and interest, a burden that requires extensive restructuring to make the economic situation more sustainable.
Iranian rial surges in Pakistan’s open market amid rising demand
The Iranian rial continues to trade at a significant premium in Pakistan’s open market, with steady buyer activity sustaining elevated rates despite the currency’s weakness against major global currencies.
Currency dealers in Karachi, Quetta and Lahore said the standard bundle of one crore Iranian rials (10 million IRR) is currently being traded between PKR 8,000 and PKR 10,000 in the informal cash market.
According to market participants, the rate remains three to four times higher than the earlier baseline of around PKR 2,500 for the same amount, reflecting persistent domestic demand for the currency.
Dealers said that in the open market, one Pakistani rupee is currently exchanging for nearly 1,000 Iranian rials, while PKR 1,000 can purchase around one million Iranian rials.
However, based on international benchmark and mid-market rates, one Pakistani rupee is valued at approximately 4,700 to 4,720 Iranian rials, placing the actual international value of one crore rials at nearly PKR 2,120 to PKR 2,130.
Market analysts say demand for the Iranian currency in Pakistan continues to be driven by speculation and cross-border trade activity.
Traders and investors are reportedly purchasing rials in anticipation of potential gains linked to possible diplomatic progress between the United States and Iran, hopes of sanctions relief and broader geopolitical developments that could strengthen the currency in the future.
At the same time, demand for physical rials remains linked to informal and semi-official trade activities along the Balochistan border, particularly involving petroleum products, fuel, food items and other goods traded with Iran.
Dealers noted that recent adjustments in transit and export policies have also supported the continued circulation of rial-based cash transactions in border areas.
Experts, however, warned that the Iranian rial remains highly volatile in global markets and advised small investors to exercise caution due to risks including counterfeit currency and sudden market swings caused by political or trade-related developments.
They further advised traders and buyers to conduct transactions only through licensed exchange companies and closely monitor market conditions, as rates may fluctuate rapidly.
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