Capital Market-Forex Interactions

Iran’s capital market continues to grapple with fluctuations of foreign exchange rates. 
The replacement value of companies as well as the income and profit of export-oriented companies change with forex fluctuations, as a large section of Iran’s capital market belongs to industries that are affected by commodity prices. Therefore, any change in the value of the local currency alters the nominal variables affecting the capital market. 
This was stated by Saeed Eslami-Bidgoli, an economist, in a write-up for the Persian economic daily Donya-e-Eqtesad. A translation of the text follows: