Devaluation of Lira may benefit Iran

The devaluation of the Turkish lira may benefit Iran. The Head of the Iran and Turkey Chamber of Commerce, Reza Kami believes that in order to give a definite answer, we need to wait for the economies of both countries to stabilize as the recent events in Turkish economy have yet to affect Iran. In recent years there has been an increase in Iranian demand for real estate in Turkey.

In the first six months of 2018, the purchase of Turkish real estate by Iranians has grown compared to the entirety of 2017. In 2017, Iranian purchased 745 pieces of property in Turkey. Meanwhile in the first six months of 2018, 1000 pieces of property were sold to Iranians, Mr. Kami said. This amount of investment places Iran in third position among foreign real estate investors in Turkey.

Mr. Kami believes that the trend in the past six months is not directly related to the devaluation of the Turkish lira over the past month. Over the past few months, as a result of the devaluation of the Iranian rial, the price of lire rose to 25000 IRR. After the fall in the price of lira. The exchange rate reached 15000 IRR per lira.

Tehran Chamber of Commerce quotes Mr. Kami: “Based on the agreement signed between the two countries to use their national currencies in trade, the devaluation of the Turkish lira opposite foreign currencies is beneficial to us.”