Masoud Nili, senior advisor to President Hassan Rouhani for economic affairs, believes the framework nuclear agreement announced between Iran the P5+1 countries in the Swiss city of Lausanne on April 2 is expected to yield positive results in terms of economic growth as of the second and third quarters of the current Iranian year, which started on March 21, Persian economic daily Donya-e Eghtesad reported.
“Even though the Lausanne agreement was only a press statement, and it is the comprehensive nuclear deal that will be legally binding, but the possibility of removal of economic sanctions within a few months and reduction in the barriers to interaction with the world is expected to effectively influence the economy. In general, economic decisions are based on both current occurrences and expectations for future events,” he was quoted as saying.
The economics professor noted that a positive signal of optimism was evident in the sudden and dramatic upsurge in the stock market. He, however, added that it is difficult at this point to conclude how the relative improvements in the capital market will influence the gold market and how the hard currency market will be affected by the Lausanne agreement.
Regarding improvement in the capital market, he said the package offered by the Rouhani administration to the parliament last year for stepping out of recession includes certain provisions for buying and selling of government debt in the financial markets, which was ratified by the parliament and passed to the Guardian Council for improvement.
He expressed optimism that the instruments proposed by the government for stepping out of recession and the positive perception among the investors about the future of economic activities would help the large financial institutions earn sufficient liquidity to support the small and medium-size enterprises.
