What is the signal for the election of the new head of the Central Bank to the stock exchange?

According to Tejarat News, according to the announcement of the Ministry of Economy, Ali Salehabadi was elected as the new Governor of the Central Bank today. Market participants hope that Salehabadi, who has been the head of the stock exchange organization for 10 years, will be able to put the stock market on the rise.

The news of Salehabadi’s election as the new head of the Central Bank became public after the closing of the media market, and Salehabadi became the head of the Central Bank while the total index is on the verge of becoming 1.5 million.

But what is the opinion of experts regarding the election of Salehabadi as the head of the Central Bank and the impact of this election on the stock market?

Hamid Asadi, Capital Market Lawyer: In my opinion, Mr. Salehabadi was one of the best managers of the stock exchange organization, and this choice has many benefits for the market. Salehabadi knows the money market and the capital market, and this is very important for the market. Another point is that Salehabadi’s view is to support the capital market, and if the managers of the Cooperation Organization between the Central Bank and the Exchange Organization interact, it can help improve the market situation.

Baqer Khademi, Capital Market Expert: This appointment has a positive signal for the capital market as a whole. In my opinion, considering his managerial background in the stock exchange organization, from now on, it will be considered in the decisions of the central bank of the stock exchange. For example, last year, Mr. Hemmati increased the interbank interest rate when the market was falling, and this caused the market to fall further, which means that Mr. Hemmati did not have a proper understanding of the capital market.

Mehdi Rezayati, Capital Market Expert: In the last decade, monetary policy did not pay attention to the capital market, and this appointment can be positive in that the attention to the capital market before the implementation of monetary policy increases. Interest rates and exchange rates have a great impact on the stock market trend, and if these two are taken into account, it will help the capital market a lot. Activists expect monetary policy to benefit the capital market, and this could be a positive signal for the market. However, budget constraints must be taken into account, and in my opinion, Salehabadi is not very open due to the economic situation. Of course, this appointment is psychologically good for the market and increases investment confidence.

Ima Raisi, Financial Markets Expert: The golden age and maturity of the stock market was apart from the multiplication of shares during the presidency of Salehabadi during the stock market. Establishment of four stock exchanges as well as a central depository company, establishment of a jurisprudential committee, launching of more than 10 new financial institutions, new financial instruments including sukuk (rent sukuk, murabaha, istisna, interest), Islamic treasury bonds, stock futures and commodity futures And…, was one of the most important actions of Salehabadi.
Given the positive performance of Salehabadi in the stock exchange organization and also after that the managerial performance in the Export Development Bank, the shareholders consider this appointment as a good omen and I think this is a positive signal for the capital market.

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