Baku, Azerbaijan, Dec. 25
By Khalid Kazimov – Trend:
The main index of the Tehran Stock Exchange (TSE) grew by 829.12 points or 0.85 percent to reach 98358.4 on Monday.
The TSE main index over the past six months has grown by 26 percent thanks to a range of reasons, including the surge in the international prices of oil and commodities, the growth in the rate of US dollar against the Iranian national currency as well as an earlier decision by the Central Bank of Iran to cut interest rates.
Since the beginning of the current fiscal year, the value of Iranian rial has dropped by 11.3 percent against the US dollar at the free market prices, according to data available on the real-time data sharing system, SANA.
Oil prices have recovered well over a third of their value since hitting 2017 lows in June. The gains are largely due to the global supply cuts implemented by OPEC and non-OPEC producers at the start of the year, with the Brent jumping above $65.
Interest rate cuts
The Central Bank of Iran (CBI) issued its latest directive on Aug. 23 setting a deadline for banks to reduce their deposit interest rates to 15 percent.
The CBI obliged the country’s banks and credit institutions to implement the directive as of September 2.
Under the directive, banks and credit institutions are obligated to adhere to long- and short-term deposit rates set respectively at 15 percent and 10 percent.
Government officials say the Money and Credit Council, the decision-making body of CBI, is eyeing further cuts of loan rates that currently stand at 18 percent.