Mohammad Reza Bahraman, in an interview with the reporter of Mine News, explained the implications of the exchange rate fluctuations and US withdrawal on the country`s mineral sector. During the past five decades, the Iranian economy has undergone at least five rounds of currency crisis, in which the exchange rate with mutations More than 20% in one year.
Since 2011, the value of the national currency has dropped 7 times. The monetary and financial disincarnating, negative oil shocks and political instability, such as war and sanctions, have been the main causes of these currency crises. The main and lasting factor of currency volatility in the Iranian economy was monetary and disciplinary dislocation, followed by high inflation.
The head of the mine`s house added: ""There is no doubt that one of the most important synonyms for exchange rate fluctuations is the shock of the psychological warfare caused by the US and the media against our country, which has led to a lack of confidence in the country`s economic future. Unfortunately, the unpredictability of the inflation rate and currency has led to the reluctance of individuals and companies to invest in long-term investments in the manufacturing sector and even in the mining sector, which has been an advantage in the country.
He stressed: Given the exchange of the mineral facilities and related industries, investment in this sector is very risky and any inflammation in the society in the supply and demand sector in the field of these economic activities can bring the performance of this sector to the border. It`s not economical to go ahead.
According to Bahramen, it was necessary to pay attention to the cost-effectiveness of production in terms of the devaluation of the national currency. It seems that in the short term, given the lower price of minerals, we can have competitive production globally, and foreign exchange policies should be developed and made to take advantage of this advantage.
The head of Iran`s mining house on how to attract foreign capital said: We must act more quickly in the country than developing a document on economic development and formulating an investor-seeker strategy, while the foreign investor, assuming that the conversion of the exchange rate to the Rails in the future would lead to a decline in value Capital will not refuse to invest in Iran; foreign investors see themselves as unwilling to enter the Iranian commercial market due to the insignificance of the Iranian economy`s turnover in the United States and fears of US sanctions.
Pointing out that this rise, the price of minerals could be somewhat worthwhile for the country; he pointed out that this approach focuses Iran on the export-oriented mining sector, but with regard to other raw materials required for industries and industries in the long run Politicians should also be able to compete.
A member of the Iranian Chamber of Commerce said: In the sixth development plan, a growth of 8% for the country`s economy has been predicted that foreign investment will reach a quarter of this goal, and if this investment is successful, it can grow by 8% But in order to attract investors and strengthen the private sector, it has to prepare the ground and this preparation must be in all economic, political and cultural aspects. We need to move faster towards the development of an economic development document and develop an investor-fundraising strategy!
He said: The effects of United State`s withdrawal from BARJAM can be pointed out to those parts of the economy and industries that are connected to the global markets and export-oriented, such as petrochemicals, steel, etc., and can be seriously damaged.
The transfer of money will be hard to come by now, and the various sectors of the economy will be affected, but most importantly, the psychological warfare that has been launched by the United States and the media in the country.
Bahraman said: Since we do not have a large international stock exchange in the mining and minerals sector and there is no international activity in the capital market, there is little concern about the recession of minerals. We must be able to transform the threat of US withdrawal from happening with proper planning to opportunity. We need to be able to change the basis for investing in the country, and instead of trusting foreign investors, we must trust our holdings and by localizing science and technology in the country. We do not have to worry about the footprint of foreign companies; we need to trust more private companies, especially knowledge-based companies, and provide the business environment; the presence of strategic executives at this time is imperative.
He noted that Iran could have international financing hubs like other centers in the world, such as Luxemburg, Qatar, etc., so that it can provide the needed capital with the active role of all financial suppliers and users in its umbrella.
Bahraman commented on mine-mine plans for mine safety in the year of 1997. He said: Iran`s mining house, through multimedia information on its communication channels, holding world-wide workshops and scientific meetings in the startup sections through the company At seminars and conferences and with the help of its supra specialized committees, it has been dedicated to transferring the knowledge of the day and the latest issues of safety in mines to members and audiences, as familiarizing and also examining the conditions of the global market can attract investors and mineral exploiters to achieve the objectives of the definition. Help in the mineral prospect. The organization of training courses and workshops is one of the ways to achieve these goals, which is practically the responsibility of the makers of the mining engineering system who are active in this regard throughout the country.
He said: The mine`s house is also working on part of its mission to support the mining sector in raising the level and safety of mines. Meanwhile, Iran`s mining house welcomes and supports new projects in the field of mine safety and other areas.
Bahraman said about the state of mines in the manufacturing and export sector during the first three months of this year: according to the latest statistical data released by IMIDRO, the country`s major steel units exports increased by 36 percent in May of 2018 compared to the same period last year. And statistics for steel exports during the first two months of 2018 show that IMIDRO`s subsidiaries exported a million and 249,918 tons of steel, up 25 percent from the same period last year.
He said that with the growth of the price of iron ore concentrate and investments, the situation of the iron and steel industry is not bad. At the same time, the amount of anode and copper cathode production increased by 39% and 28% during the first two months of the year.
According to Bahramen, the amount of foreign investment and the level of private sector participation in the mining sector is also increasing this year, according to the chairman of the executive committee of IMIDRO, the $ 5 billion of the financial capacity of Iran and China this year will be spent on the mine. And the mineral industry. So that $ 4 billion of this figure has been invested in projects run by private sector IMIDRO.