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Today, Sunday, January 14 – the second day of the week – the Iranian financial markets took a negative direction in the wake of joint raids carried out by the United States and Britain that targeted several sites for…Houthi group In Yemen, with the aim of what you call weakening the group’s ability to launch attacks in The Red Sea.
While the dollar market appeared to be stable last Thursday, developments in the Red Sea raised the level of tension in the Middle East and the US currency began to rise again in Iran.
Negative interaction
The price of the dollar rose on Sunday in the open market to reach 52,700 tomans per dollar, an increase of 1.23% compared to what it was a day ago. The prices of gold and coins also began to rise due to the repercussions of the events.
After the conflict increased in the Red Sea, the price of an ounce of gold reached $2,049 on Sunday, an increase of 0.78% compared to the previous two days and no change compared to the previous day.
All stock market indices also turned green, but the rate of increase in the indices was less than 1% on Saturday.
In Sunday’s transactions, the Tehran Stock Exchange continued its upward journey, as the index reached about 2.2 million points, an increase of 0.7% from yesterday’s session, Saturday.
Economy under siege
Economics professor Bahman Arman confirmed that these events taking place in the Red Sea and Yemen directly affect Iran’s economy, which is subject to sanctions and blockade and has no relations with the economy of large industrial countries other than China.
He said in Speaking to Al Jazeera Net “There is no doubt that what is happening in the region increases the difficulties of the economy subject to sanctions.”
He added, “What we are witnessing with regard to the decline in the price of the national currency is a result of that, that is, the American-British aggression against Yemen,” as he put it.
Regarding oil, Arman believed that since Iran does not have oil trade with Europe (and its oil trade is only with East Asian countries), it will not be directly affected.
He added, “There is an important impact, which is contributing to Iran’s isolation more than before,” and he expected that the impact of what happens in the Red Sea on oil would be short-term.
Arman warned that there are fears that Red Sea tensions will expand and reach the eastern sea and then to the GulfStrait of Hormuz The Sea of Oman and its outskirts.
Systematic risks
For his part, economics professor Isaac Saedian said that the Central Bank tried during the past year to adopt a policy of stabilizing the price of the national currency against foreign currencies, but this policy is without a practical and scientific background because it lacks support in terms of gross domestic product and the speed of economic growth in the country.
He added in his interview with Al Jazeera Net that there is no economy that is not exposed to risks, but given that the Iranian economy was operating according to an artificial policy, it was waiting for any catalyst to cause the local currency to return to decline.
Saeedian explained that events such as what is happening in the Red Sea and Yemen do not determine the price of the currency, but rather push it (the currency) towards its real price against foreign currencies.
He said that if the American-British bombing of Yemen continues, this will have a greater impact on the Iranian economy and will contribute to a further decline in the price of the local currency, given the crises of liquidity, inflation, and economic growth in the country.
