How to bet against Iranian currency?

Discussion in 'Forex' started by Saltynuts, Sep 8, 2018.

  1. Saltynuts

    Saltynuts

    I know a lot of Iranians, and they talk about how the currency is completely crumbling. They think it is going to get much much worse.

    How can I bet against the Iranian currency?

    Thanks!
     
  2. pipeguy

    pipeguy

    Do you know that almost every Muslim country has heavy capital controls? It's crucial part of their political stance because hot money flows from West, their biggest enemy can easily ruin their economy.
     
  3. dealmaker

    dealmaker

    Find an Iranian company registered at an exchange abroad....
     
  4. Saltynuts

    Saltynuts

    Thanks dealmaker, you mean find an Iranian foreign exchange company registered and try and go through them? And hope I dont get robbed lol?
     
  5. dealmaker

    dealmaker

    No.
    There are a lot of emerging nation companies that for liquidity reasons are registered at their local exchange and also on NYSE, Nasdaq, LSE etc., eg there are a lot of Chinese and Turkish companies listed on NYSE. I doubt you will find an Iranian company listed on any of the US exchanges but you may be able to find one listed in London, Paris or Frankfurt IE you'll be shorting the Iranian currency indirectly...

    PS famed hedgie/ billionaire Stanley Druckenmiller used this strategy to great success in lieu of shorting the South African Rand. To borrow the Rand would have been much costlier.
     
    Last edited: Sep 8, 2018
    constitutionman, Sig and Snuskpelle like this.
  6. Saltynuts

    Saltynuts

    wow, thanks dealmaker.
     
  7. Trade the opposite of the forex pair and always short it..
     
  8. zdreg

    zdreg

    start by asking your Iranian friends.
     
  9. Sig

    Sig

    Not sure there is anywhere to trade this particular forex pair, and if there was the roll interest would be massive enough to counteract the expected decay of the currency.
     
  10. Sig

    Sig

    That's a very useful idea. I wonder though if the companies listed on exchanges outside the home country don't make most of their revenue from exports so they're relatively unexposed to their own currency's weakness?
     
    #10     Sep 9, 2018