Iran’s newly-appointed Minister of Economy Nasser Hemmati has pledged to bring back confidence to the stock market.
In a speech broadcasted on Iran’s state television on Saturday, Hemmati said he will oppose overnight decisions that will affect medium-term plans of the stock exchange investors.
He referred to an 8% growth envisaged in the country’s 7th five-year economic plan, and said that if confidence is not restored in the stock market, this economic growth would not happen.
When the interest rates suddenly rise, it is natural for the people to lose their confidence in the stock market, the minister said, highlighting the need for preventing overnight decisions in the monetary market, feed rates prices, and pricing the products supplied at the stock market.
“We will effort to remove these obstacles, don’t interfere and let the people invest with peace of mind,” he said.
He also argued that as long as the budget deficit and banking imbalances are not effectively addressed, the soaring inflation cannot be controlled.
Iran’s stock market witnessed a major fall in August 2020, prompting a large group of investors to abandon the market.
Iran’s new President Masoud Pezeshkian was elected in a tightly contested presidential runoff in July 5. During his campaign, Pezeshkian had pledged that solving economic problems would be a top priority of his administration.