News and Views
- In an interview, President’s chief advisor emphasized on the money market as the main rival to the capital market and stated that offering a high return ratio and zero tax, the money market is the reason of the ongoing money flight from the capital market. Mr. Turkan continued to say that the exchange market success lies in inflation fighting and bank interest reduction. Answering to a question on whether banks will resist against interest reduction, he mentioned that banks are faced with some liquidity problems; however, the new package introduced by the President is supposed to boost the banking network and their capital raise. In this regard, he went on and said that after the implementation of the JCPOA and the lifting of sanctions, banks will be able to open LCs for Iranian producers with less difficulty. Besides, in replying the question on the probable rise of inflation after conducting attempts to increase demands, he remarked that the CBI will monitor and control the inflation rate per week to curb any deviation from their desired point. He also expressed hopes that the economic growth package will bring about two important results; civil projects will be boosted and the newly offered debt issues will finance a part of government’s debt to the contractors which, as a whole, will eventually exert its positive effects on the economy and the exchange market.