CBI directive to take down on Iran Debt Market!
– Just the other day, Central Bank of Iran put a directive into effect allowing banks to issue 20% (Per annum) certificate of deposits which eventually affected Iran Debt Market. Aiming to stabilize the FX market, CBI directive caused a plunge in debt securities’, specifically Islamic Treasury Bills, prices, ended for almost all of the YTMs to hike over 20%. Analysts believed, considering the benefits of higher rates on Iran Debt Market contrary to banking sector, only by absorbing the free money streams by the capital market, rate jumps would have lesser inflation effect on the nation’s economy. Below table shows the latest status of Islamic Treasuries with highest yields as of Feb 17, 2018.