Tehran, Iran, Sept.16
Trend:
The best investment choice in Iran's current situation is bank saving that has distinctive interest rate, said Iranian economist.
Considering various markets in sanction situation, Albert Boghazian discussed the best way to invest in Iran in an interview with Trend
"In regards to changes and fluctuations in recent months in various markets, it seems the best choice for individuals who seek risk free investment is bank savings," he said.
"Attracting financial sources is one of the important targets for banks, and all of them are obligated to follow the 15-percent interest rate regulation set by the Central Bank of Iran. This action can be effective in reducing production costs and price of goods," said the economist referring to bank policies in reducing interest rate.
"Meanwhile, some bank branches have not followed the rules and have increased the interest rate, thus causing unfair competition due to lack of CBI supervision. If the interest rate is high, there is no possibility for direct credit to production sector; therefore, the production will remain in recession," he said.
"It can be stated that the major part of increased liquidity during past years was due to high bank interest rates, which had no real connection to economic and production sector," he added.
"Considering the government control over foreign currency rate, investments in dollars have dropped. The investments in auto sales and purchases have also reduced. The auto market is in recession, while ban on auto imports is lifted, so the prices have fallen," he said.
"The investment in capital market, stock exchange, gold and land alongside bank saving can be a good choice, if the investor has a long term view and is not keen to reach profit fast," he noted.
"Investment in stock exchange for less than five years is not safe, while investments in bank saving for less than five years is more suitable investment," he added.