What is the cause of the stock market fall? / Why does the sale of government securities not end?

According to Tejarat News, despite the fact that the government was supposed to stop selling its bonds in order to support the stock market, apparently we will see the supply of government bonds in the stock market this week. Now, the stock exchange, affected by the news announced by the head of the stock exchange organization yesterday, started its work today in red.

Nima Mirzaei, a stock market expert, said: “The budget deficit and inflation have reached a serious range.” The government at this stage has to use its tools of power. The slowdown in interbank interest introduced the dollar into a new channel, and bond sales were still expected.

He continued: “Due to the liquidity situation and inflation, the supply of government bonds will continue in the coming weeks and months.” Of course, it is much better for the government to go to the sale of property and assets in the stock market to compensate for the lack of liquidity in order to avoid negative effects and pressure on the stock market, but apparently this is not the government’s priority at the moment.

Mirzaei said: it should be noted that until the final task of Borjam and the release of foreign exchange resources is determined, the issue of budget deficit and inflation is always the most important challenge of the government. Of course, the method used to compensate for this issue will have many negative effects on the capital market.

Regarding the clients of government securities on the stock exchange, the stock market expert clarified: The framework for exercising government power is not limited to banks. Due to the privatization situation in the country, in the next layers, the government will turn to some private companies to sell their securities. No matter what the clients of these securities are, the negative impact will ultimately be on the entire market.

Regarding alternative ways to compensate for the lack of liquidity, Mirzaei said that the sale of property and assets can also compensate for the government’s lack of liquidity, but reduces the government’s authority. However, the government can not continue to sell securities in the stock market in the long run.

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