To: Valin; F14 Pilot
If they close the Tehran Stock Exchange (and not only this site http://tse.ir
) it will for sure cause more problems. They do not understand that the Stock Market is just a measurement of the economy and not something you can use to control it. But, just a rumor that it will be closed makes a run on the financial institutions - i.e. what has been going on for some months now. It will accelerate.
Tehran, Iran, Nov. 12 Capital flight in Iran over the past fortnight reached its highest recorded level since the 1979 Islamic revolution, prompting financial advisors to the hard-line government of President Mahmoud Ahmadinejad to call for a temporary suspension of the Tehran Stock Exchange (TSE), according to market investors.
The market flight took a dramatic turn for the worse after Ahmadinejad made a speech in Tehran calling for the destruction of Israel and threatening Iran's Muslim neighbours that developed ties with the Jewish state, an investor close to the government, who wished to remain anonymous, said.
The hard-line president's remarks were condemned by the international community, and Tehran received a reprimand by the United Nations Security Council.
The capital flight began in earnest in June, after the election of Mahmoud Ahmadinejad as the new president. Ahmadinejad's record as a radical Islamist and a former Revolutionary Guards commander, and his reputed remark that "stock exchange speculation is forbidden in Islam" sent jitters through the country's markets. Nervous investors have been transferring their capital to safe havens such as Dubai in the United Arab Emirates. In the past four months, the Tehran Stock Exchange has lost more than 20 percent of its value.
Ahmadinejad's recent comments, however, spiked capital flight to an all-time high and there are no indications that the markets would calm down any time soon, the source said.
Meanwhile, the Tehran-based daily Rooz reported on Thursday that representatives of the World Bank told the governor of Iran's Central Bank that the country's economy was spiralling out of control.
The free-fall of the stock exchange and investors' exodus have added to the mounting economic problems facing Ahmadinejad's government. The hard-line President reportedly told a cabinet meeting last month that "if we were permitted to hang two or three persons, the problems with the stock exchange would be solved for ever".
In another development, a team of financial analysts close to the government wrote in a confidential report that the only feasible solution to Iran's economic woes at present was to temporarily suspend activities at the Tehran Stock Exchange, according to Ahmad Sabahi, an Iranian financial analyst based in Dubai.
"We have received word that the [Tehran] Stock Exchange might halt trading within the next several weeks", Sabahi said in a telephone interview.
He said the authorities were not implementing the decision to shut down the TSE immediately, so that investors would not draw a correlation between the suspension and the Iranian president's recent pronouncements.
posted on 11/12/2005 11:01:35 AM PST
To: nuconvert; freedom44
The stupidity continues. Ahmadinejad will steer Iran to a final meltdown:
IRAN: PURGE OF MODERATES EXTENDS TO GOVERNORS AND BANKS
Tehran, 11 Nov. (AKI) - After a purge of diplomats and directors of state-owned banks, the hardline government of Mahmoud Ahmadinejad is now weeding out regional governors who were appointed under Mohammed Khatami and are considered too moderate. The first to lose his job was the governor of Khorasan, whose regional capital Mashad is the second most important religious centre after Qum and hosts the sanctuary of Imam Reza. The new governor is Hassan Mortazavi, until now head of the prisons department at the justice ministry. Another five prison directors will replace other governors in coming days.
Commenting the latest shake-up, writer Emadeddin Baghi, founder of a political prisoners' rights group, said "it seems they want to turn every region into a mega-prison and hence are giving the task of governor to people with relevant experience."
Under a presidential decree last week the directors of the country's most important banks (Sepah, Melli, Mellat, Keshavarzi, Saderat e Tejarat) have also been removed. Ahmadinejad had accused the directors of the banks, along with the Tehran Stock Exchange of "anti-Islamic and anti-social behaviour", arguing that "hanging some of the directors would be enough to resolve the economic crisis".
In the farewell cerermony to the outgoing bank directors, the new economy minister Davoud Danesh Jaafari, issued a warning to Iran's banking sector. "If the banks do not work to carry out the economic policies of the government, or worse still work against them, they will be closed down".
The appointment which has created the greatest furore in financial circles is that of Abdolhamid Ansari, a former commander of the Revolutionary Guard, who will head the Melli Bank, Iran's central bank.
The foreign minister, Manouchehr Mottaki, confirmed that by the end of the Persian year - which concludes 20 March - forty ambassadors will be recalled to Iran and will not be redeployed in other overseas missions.
However while the parliament is generally supportive of the new leader, on Wednesday, Ahmadinejad was forced to withdraw his candidate for the key oil ministry, Sadeq Mahsouli, hours before it went to a parliamentary vote, because of his lack of expertise in the crucial energy sector.
posted on 11/12/2005 12:14:17 PM PST
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson