Possibility of depositing $ 150 million to the capital market stabilization fund by the end of November

According to Tejarat News, the transfer of financial resources from the National Development Fund to the stabilization of the capital market is not a new issue. But each time its finalization was delayed due to existing problems.

The government had previously agreed to allocate $ 200 million from the National Development Fund to help stabilize the capital market.

Deposit of the first stage of financial resources to the capital market stabilization fund in December 1999

After the margins created in order to transfer financial resources to the Capital Market Stabilization Fund and also the delay in its implementation, based on the decisions taken, it was decided that the National Development Fund will allocate its resources to the Capital Market Stabilization Fund in several sections. Dedicated to the capital market stabilization fund is a kind of facility.

Following the follow-ups made by the relevant authorities to deposit these resources to the Capital Market Stabilization Fund as soon as possible, the National Development Fund in the first part of one thousand billion tomans on December 26 last year with the Capital Market Stabilization Fund with a 12% interest rate and He deposited for five years.

Regarding the deposit of such a figure to the Capital Market Stabilization Fund, “Mohammad Ibrahim Aghababaei”, Chairman of the Capital Market Stabilization Fund, told IRNA: “The Capital Market Stabilization Fund has requested a higher figure from the National Development Fund and if it agrees.” New amounts will be deposited soon.

Despite the promises made to deposit new funds to the Capital Markets Fund, the timing of its implementation was in a state of ambiguity, and each time the delay in implementing such an action was attributed to various factors.

Commitment of the National Development Fund to deposit $ 200 million in the Capital Market Stabilization Fund

Simultaneously with the margins created by market participants regarding the negligence of the officials for the final deposit of this amount to the Capital Market Stabilization Fund, the former Vice President for Economic Affairs announced the decisions of the Government Economic Coordination Headquarters meeting on May 12, according to which Within three weeks, $ 200 million of the National Development Fund’s foreign exchange reserves will be phased out and transferred to the Capital Markets Stabilization Fund.

According to the communiqué, the Central Bank of the Islamic Republic of Iran, in implementation of the resolution of the Supreme National Security Council, was required to gradually sell $ 200 million of foreign exchange resources from the National Development Fund account and transfer the proceeds to the Capital Market Stabilization Fund. .

Deposit the equivalent of $ 50 million in Rials to the Capital Market Stabilization Fund

According to the decisions of the meeting of the Government Economic Coordination Headquarters, on May 17, the Central Bank transferred the equivalent of Rials equivalent to $ 50 million from foreign exchange resources of the National Development Fund to the “Capital Market Stabilization Fund”, but the remaining amount was equivalent to $ 150 million. It has not yet been injected into the market stabilization fund.

Presidential order to deposit funds to the capital market stabilization fund

With the new government in place, the implementation of the remaining deposit to the capital market stabilization fund was seriously pursued. Also, following the recent support of the government in order to improve the stock exchange trading process, the Government Economic Coordination Headquarters convened a meeting on Tuesday evening (November 4, 1400) chaired by Ayatollah Seyyed Ibrahim Ra’isi. The granting of facilities to the National Development Fund to support the Capital Market Stabilization Fund was proposed and it was decided that these approvals should be implemented immediately.

Possibility of depositing financial resources in the capital market stabilization fund by the end of November

Following the publication of such news, IRNA correspondent’s follow-up indicates that the transfer of financial resources to the capital market stabilization fund is in earnest and the existing problems will be resolved.

Given that the follow-up is now ongoing, the measures will be concluded soon and the deposit of funds will enter the final stage.

The follow-up by IRNA economic correspondent shows that there is no significant problem with this measure now, and if some internal problems regarding the National Development Fund and the operating bank are not dealt with seriously, this measure will be implemented soon. And we will see its positive impact on market trends.

The principle of this measure is based on the fact that first a bank must be selected by the National Development Fund to pay the financial resources and finally the selected bank must deposit the financial resources to the capital market stabilization fund.

The exact date of the final implementation of this deposit can not be announced now, but according to the news received by IRNA, the money will most likely be transferred to the account of the Capital Market Stabilization Fund by the end of this month.

The exact amount of this deposit has not been announced to the Capital Market Stabilization Fund, but according to the President, the decision to grant facilities amounting to $ 150 million from the National Development Fund to support the Capital Market Stabilization Fund will be implemented.

According to IRNA, the stock exchange organization has a fund called the capital market stabilization fund, which enters a percentage of the organization’s trading fee and income in order to maintain liquidity.

The important point for using these funds is that in normal and normal market conditions, the resources of this fund can not be used, but it is used more for the days when unforeseen events occur that strongly affect the short-term market trend and price. Stocks face a sharp decline, due to the situation of the fund’s resources in this situation, according to the management competence, enters the market demand side and stabilize prices by collecting sales queues.

The stock exchange organization uses the resources available in this fund to support the market in cases when a critical event occurs in this market and requires liquidity, and in this way, stabilizes the market transactions.

The liquidity in this fund may be provided through the National Development Fund and the Foreign Exchange Development Fund, and finally, the Exchange Organization will control the market transactions through these funds. Being that share is a bubble price, otherwise the desired share can not be supported.

Source: IRNA