Iranian markets on hold as politics overshadow trades

May 10, 2021 - 12:29

TEHRAN – Iranian markets including forex and stock markets are currently in a limbo situation as traders are waiting on the results of two major political events namely the presidential election and the nuclear deal negotiations to clear the atmosphere, Economist and Market Analyst Jamal Razaqi said.

According to Razaqi, who is the chairman of Shiraz Chamber of Commerce, traders have been cautious over the past few weeks and at the moment signals from Vienna are the only factor that is controlling the trend of the trades.

The value of the national currency rial grew in comparison to the U.S. dollar over the past week with each dollar falling to 210,000 rials.

“The positive news from Vienna and optimism about the lifting of sanctions and the release of the central bank's foreign currency resources have been among the reasons for the fall in dollar exchange rates,” Razaqi said.

According to the expert, the stock market is also following other physical markets and major traders are monitoring political events in order to make decisions so the trend of the trades in this market is still downward.

“The decrease in the dollar exchange rates in bank exchange offices also indicates the market’s desire to continue its downward trend, but due to the ambiguity in the political and economic environment and the uncertainty of the outcome of the negotiations and the upcoming presidential election at the moment only short-term traders are active in the market.”