- Published: Saturday, 11 July 2020
In a letter to the Iranian President Hassan Rouhani and Iran Central Bank, 25 economic experts warned about the consequences of the current “dangerous” policy in Iran’s stock market.
“The current situation of the stock market is extremely critical, and its continuation (Iran’s stock policies) will entail further destruction of the macroeconomic situation. The current trend of the stock market will lead to a further increase in inflation and exchange rates," they wrote.
The 25 specialists demanded from Rouhani the “supply without delay of government stock market assets” and to “accelerate companies' initial public offerings” in the stock market.
The state-run Panai news agency wrote: “From the first sentences to its last, the letter of 25 economists to the government and the central bank informs of a crisis that will sooner or later affect the stock market and the government.” (Panai news agency, 7 July 2020)
On 7 July, following the bursting of Rouhani’s propaganda bubble about the stock market, which he portrayed as an indicator of economic prosperity, he falsely announced: “The growth of stock market indices should be based on accurate scientific principles and based on the logic of the capital market.”
He inevitably accepted some of the demands of the regime's economic experts and said: “All government agencies are required to list companies' shares on the stock exchange.” (Tasnim news agency 7 July)
Tasnim news agency mocked the claims of Rouhani’s First Vice President Eshagh Jahangiri pertaining to organizing the disastrous conditions of the people’s lives and wrote:
“In less than three years of activity of the twelfth government, every square meter of housing in Tehran has become 14.5 million tomans more expensive, the dollar’s value is increased 472 percent, (gold) coin is becoming 700 percent more expensive, and some goods like the tomato paste, tea, and meat, had a price increase of more than 200 percent. And during this period, other goods had a price increase of more than 12 percent. Just in the past three months, the currency’s rate witnessed an increase of 38 percent.” (Tasnim 7 July)
Jahan Sanat wrote about the ongoing increase of the currency’s exchange rate: “Behind the curtain of the (currency crisis) we must look for the traces of those policies” that “in the last four decades, resulted in nothing else than the accumulation of liquidity in the economy for the benefit of brokers, and the reduction of the rate of investment in economic markets.”
This newspaper added that in the absence of the petrodollars, “there is no currency left in the treasury that the government wants to spend on economic affairs” and meanwhile, “Monopolies formed in economic markets have resulted in nothing but a gradual outflow of investors from the country.” (State-run daily Jahan Sanat 7 July)