According to Monetary and Banking Research Institute (MBRI) public relations, Akbar Komijani, deputy of Central Bank of Iran (CBI), in his speech in the 26th annual conference, dubbed “monetary policies performance and plans for the FY2016/17,” said: “the monetary base over financial year 2015/16 witnessed 17.1% growth YOY and reached the amount 1,535.7 trillion rials, indicating 6.4 unit percent growth to that 2014/15.
Money multiplier stood at 6.624, showing 11% rise compared with that of 2014/15 and registering 0.5 unit percent rise with the prior year. This is to say that the major catalyst behind liquidity in the previous year was the spike in monetary base, noted Komijani.
Regarding the effective factors in the change in monetary base, this official also stressed that net foreign assets of CBI with 21.3% growth y/y and constituting 25.7 unit percent was the main driver behind money base increase in the earlier Fiscal Year.
Mr. Tayyebnia, the economy minister, also noted in the same conference the major obstacles of the banking sector. Those issues have been listed as following:
- Investigating the balance sheets of the sector, 15% of the deposits and resources are dedicated to investments in housing and construction sector rather than being used for production and manufacturing purposes.
- Bankers just use 58% of their financing capacity to fund the enterprises in the economy.
- Rouhani’s administration does intend to clear and settle its liabilities owed.
- Non-current loans balance amounted to 794 trillion IRR which exceeds 12.2% in proportion to aggregate deposits.
There are various elements piling up the demand for banking facilities such as high inflation, rise in the currency rate, propensity to sell goods in installments instead of selling in advance by the economic enterprises and restrictions in opening Letters of credit (LCs) are said to be the main factors bringing about the current toxic assets among the lenders, according to the minister.
In the Market
Automotive: All in all most names in the space witnessed a negative session. Khehaveh went up 4% closing at 168 IRR with 74 mn shares changing hands. Whereas Khezamia and Khavar, both, dropped 2%. Meanwhile Khebahman had a positive activity and continued its upbeat by gaining 4% , keeping the positive momentum after three consecutive days, registering 14% rise in the share’s price altogether.
Metals: Most names closed their action in the negative domain. Arfa faced sell-offs, just after going up 7% in yesterday’s action. Zob was also traded in the negative territory, leading the group in the volume of transactions measure. Famelli was the next ticker following down the board with 2 % slide at 1656 IRR.
Chemicals: They went through a negative session. Parsan was the ticker leading the category, with 1% spike and impacting the Overall-Index by +23 units. On the other hand Fars exerting -57 units’ influence on TSE Index was the major name dragging down the benchmark index at 5380 IRR.
Transportation: Hetaid was one of the names in the sector delivering 30% return in just one week to its shareholders due to rumors that its major shareholder might change. This came true as 63.9% of the company’s shares will be sold in block trading by the major shareholder. Hereil took the label of the highest traded share in the segment with 38mn shares being traded finishing its session in buy queue at 1367 IRR.
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