Baku, Azerbaijan, Nov. 8
By Farhad Daneshvar – Trend:
An Iranian economic expert has called on his countrymen to invest in the Islamic Republic’s capital market and banking sector instead of putting money in the housing market.
Putting money in the country’s banking sector as well as capital market through investment banks offer proper opportunities for reaping benefits for those individuals who are after investment opportunities, Hossein Abdoh-Tabrizi, an adviser to the minister of roads and urban development of
Iran, said in a televised interview aired by the state broadcaster.
According to the official, the capital market ranks the second in profitability in Iran behind banking sector.
Hossein Abdoh-Tabrizi advised Iranians to keep small amounts of money between 200-300 million rials (about $6,000 -$7,000) in banking deposit accounts.
However, the country’s capital market is a proper option for putting larger amounts above 1 billion rials (over $30,000), he added.
Hossein Abdoh-Tabrizi further discouraged people from investing in the housing market.
Iran’s housing market over the first seven months of the current Iranian calendar year (starting March 20) witnessed a surge of six percent in prices compared to the same period last year.
The upward trend came due to an increase in demand in the fifth and sixth months.
Over the current Iranian calendar year, the country’s banks cut down interest rates from 20 percent to 15 percent, following the government’s breakthrough in tackling inflation as its rate dropped to single digits (9.5 percent) for the first time in the last 25 years.
Reducing interest rates was carried out with an aim to give a boost to the country’s depressed economy by lowering the inflation rate.
In the meantime analysts have suggested that the decision on lowering interest rates would have a positive impact on Iran’s capital market, in particular the Tehran Stock Exchange.
According to official announcements, while banks attract 90 percent of investment at Iran’s financial market, two percent goes to capital market and the insurance market lures in eight percent.
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