Iran's gold, foreign currency markets affect each other
TEHRAN, Iran, May 16
Iran's investment market's including gold and foreign currency are affected by each other and other factors, said Iranian economist.
Vahid Shaghaghi Shahri has discussed the reasons for sharp rise of gold, gold coin prices and USD rate in Iran's market in an interview with Trend.
"There are five investment markets that are connected and are moving forward together and function coordinately," he said. "The housing, auto, gold, foreign currency and capital markets affect each other, the current rise of prices in the gold and foreign currency market has effected the auto market, while the stock market had a fast growth in past five months which manifested in these markets."
"One factor that inflamed these markets was the recent effect of capital market on other investment markets, and other factors included closing borders for Iran's export to neighbor countries since February due to coronavirus spread," he said adding that the export of non-oil products is very important.
"The other reason for the rise of foreign currency rate was limitation over sale of Iran's oil and petrochemical products was due to US sanctions," he said. "The price of oil products and steel have declined due to drop of demands during coronavirus spread and by global recession that also effected Iran's non-oil export and led rise of USD rate from 14,000 rial to 17,000 rial."
"The rise of USD rate has increased the demands in the market, and the number of customers who purchased gold and USD has grown. The increase of demand has raised in Iran markets, which is opposite to of what is happening in other countries," he added.
"When the coronavirus is over, Iran's export to neighbors will resume to normal, and if we can reduce the impact of sanctions on export of petrochemical products, the pressures on the market will be reduced," he said.
"Iran has exported $39 billion of goods and imported $40 billion during 11 months of last Iranian year (started March 21, 2019), the trade balance deficit was very limited, and the problems will be solved, if borders reopen, and the trade balance will become positive," he said.