Don961 » November 21st, 2016
Monday, November 21, 2016
Iran Fara Bourse will list Iran Mercantile Exchange on its primary board. IME’s request was approved, but not before the exchange doubled its capital to 900 billion rials ($24.4 million at market exchange rate), which took place in mid July, Security and Exchange News Agency reported. IME, founded in 2006, trades in agricultural, industrial and petrochemical products in the spot and futures markets.
The market added gold certificates of deposit to its arsenal this year, complementing its gold coin futures trading. The precise day for the exchange’s listing on the IFB has not been announced.
The over-the-counter market emulating NASDAQ, IFB, is Iran’s second largest equity market in size, with a $13.7 billion market cap.
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Don961 » November 21st, 2016
Monday, November 21, 2016 Saeed Leylaz
A 10-12% annual increase in foreign exchange rates based on the inflation rate is not an anomaly, says a economist.
“Those who insist that currency rates must stay fixed should (also) keep inflation on a leash and prevent it from rising so that exports are not harmed, imports do not increase and the balance in consumption pattern is not upset,” Saeed Leylaz told IRNA.
As an example, the academic noted that a trip to Antalya (in neighboring Turkey) is now less costly than a trip to the holy city of Mashhad and it is cheaper to import banana from Ecuador, which is 16,000km away than to import apples from Damavand (a district in north Tehran).
All this is the result of the relative stability in forex rates, the pundit says.
“On this basis, an annual surge of about 10-12% in forex rates cannot and should not be condemned unless inflation has been tamed,” Leylaz said. “An increase in currency rates in the vicinity seen in the market over the past several days is in no way a cause for concern.”
According to the economic expert, there also should be a consistency between the US dollar rate and the inflation rate. “We have indeed witnessed a relative stability regarding the matter (rates) over the past three and a half years (since the current government took office in mid-2013).”
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Samson » November 21st, 2016
Budget Bill in Majlis by Early December 21st November, 2016
President Hassan Rouhani will take the budget for the next fiscal year (starting March 2017) to the parliament in 14 days, the head of Budget and Planning Organization and government spokesman, Mohammad Baqer Nobakht, said on Friday.
"The bill will be taken to parliament right on time, unlike prior presidencies," Nobakht was quoted as saying by IRNA. He gave no details about the new budget. Budget and Planning Organization is a government body tasked with drafting the budget.
This year, the government planned to spend 3,354 trillion rials, 15.6% more compared with the prior fiscal. However, financing is an obstacle. In the annual budget for the ongoing year, which started on March 20 2016, the government expected to make 802 trillion rials in the first half of the year. However, the administration earned 589 trillion rials due to lower-than-expected revenues, especially crude oil sales. This trend is likely to continue into the next budget, as recovery remains sluggish and crude oil prices remain depressed, limiting state revenues.