War of markets
Are banks and stock exchanges competitors?
Hossein Selahvarzi, Vice President of Iran Chamber of Commerce
In recent days, some economic experts close to the central bank, while criticizing the performance of the country’s stock market, by calling this market inefficient and considering its performance to be unproductive, have pointed out the existence of advertising and political pressures from the key stakeholders of the capital market in the financing system of the country’s economy. , considered one of the important factors of central bank monetary policy deviation.
The money and capital market war is one of the unique troubles and problems of Iran’s economy, which I don’t know is the result of our unique work in governance and economic policy.
When the monetary base growth is not proportional to the economic growth or economic growth capacity, and only in the framework of the government’s financial policies and in the absence of a reliable audit system in the field of public finance; The result is the wandering liquidity that the rent-seekers get into tension and fight over its appropriation, which actually means taking a share of the inflation tax.
In this dusty field, it is natural for everyone to try to acquire and possess a larger part of this windfall, and in a situation where the production, distribution and circulation of this powerful and baseless liquidity is largely influenced by government policies and government interventions, it is natural that The main effort of rent seekers in various fields should be focused on providing evidence and gathering promises to get a larger share of this poisonous flow of liquidity.
This behavioral pattern does not recognize stock market, bank, production and trade.
What is very important in the meantime; It is important to pay attention to this fact that this battle was not and is not the battle of patriotic Iranians who are concerned about the development of this land!
What the real activists of the private sector of the economy and experts and experts sympathetic to the development of Iran want and say; Emphasis is placed on making public finance controls transparent and effective, especially in the area of government debt, which is the fulcrum of an independent central bank as the guardian of national currency credit.
The day when public finance transparency closes the hands of the government for the reckless distribution of subsidies in the country’s economy and the central bank becomes the neutral regulator of the money and credit market from implementing the government’s financial policies; There are no more ways for the extensive intervention of the government in the natural order of the economy, and the baseless and powerful liquidity that rent seekers in different sectors of the Iranian economy will come together to take over.
On that beautiful dream day, when the market determines the interest rate of money and the removal of institutional barriers to transparency and scalability, the stock market becomes an effective financing tool in the country’s economy, the money and capital markets will not compete but complement each other. The money market that attracts low-risk sources of the hard core of the economy and the stock exchange hosts more risk-taking sources that are the driving engine of the country’s economic growth with higher returns.
The real battle for lovers of Iran and those interested in the development of the country is to remove the obstacles on the way to this point; Not a dispute over how to distribute cash rent without support.
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