TEHRAN, Iran, May.3
Trend:
Securities and Exchange Organization's recent decision to inject $200 million from the National Development Fund into stock exchange would stabilize the capital market, said stock exchange expert.
The parliament has approved the formation of the Iran Capital Market Stabilization Fund in 2014, the predicted resources for this fund was equal to 1 percent of resources in the National Development Fund so the following fund would play a role in stabilizing the capital market, Homayoun Darabi told Trend in an interview.
"The fund was not in need of heavy intervention in recent years since the market was stable and in good conditions, so this amount of money was not injected to the Capital Market Stabilization Fund," he noted.
"However considering the imbalance in the whole economy that caused by the government decisions to fight inflation, the interest rate increased and reduced liquidity in the market so in order to compensate that the fund should help balance the capital market," he added.
Darabi went on to say that the implementation of this bill and boosting the Capital Market Stabilization Fund can help the stock exchange's sustainability and would not have a negative effect on the market.
"The concept of National Development Fund is to save the revenue from oil sale for the costs and to store the incomes for next generations. The National Development Fund money injection to the stock market is a direct investment. All national funds in the world use this method, many countries such as Saudi Arabia and Kuwait are seeking to do the same," he stressed.