Domestic Economy

Capital Market & Forex Fluctuations 

Capital Market & Forex Fluctuations 
Capital Market & Forex Fluctuations 

Fluctuations in the value of foreign exchange rates [against rial] have once again unsettled economic players, leading some economists to warn against the dollarization of Iran’s economy. 
The exchange rates and their fluctuations are one of the key variables affecting the decisions made by traders in the capital market. The concurrency of these fluctuations with the budgeting process has made the issue even more sensitive. It would be impossible to analyze different scenarios ahead of the stock market without surveying the probable changes of the currency rate and the effects of budgetary decisions made by the government and the parliament on the fundamental variables in the economy and industry. 
These were stated by Saeed Eslami-Bidgoli, an economist, in an article for the Persian daily Donya-e-Eqtesad. A translation of the text follows:


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