BAKU, Azerbaijan, June 26
Trend:
Transactions at Iranian stock exchanges, including commodity and energy exchanges, can increase, Iranian expert Abbas Rahimi told Trend.
"For this to happen, a series of problems must be solved," he said.
According to him, among these problems are the elimination of brokerage, the rents from manufacturing plants, and the rents in the consumption of raw materials.
"With the help of commodity and energy exchanges, a producer of goods and raw materials can sell his goods or materials to the real consumer without intermediaries, and the consumer of goods and raw materials will be able to supply his consumer items without intermediaries," Rahimi explained.
"For example, consider the process of production and supply of cars by Iran Khodro and Saipa. Currently, a car made by these two companies is offered in a limited lottery for 40 to 50 percent below the market price. By examining the financial statements of the car manufacturers, we realize the huge losses these companies go through due to mandatory pricing. On the other hand, the consumer buys a car from the open market 40 to 50 percent higher than the factory price. It is obvious that this difference between the factory price and the market goes to the dealers," the expert added.
"If the cars produced by car manufacturers are offered at the commodity exchange and the price is completely free and dependent on demand, the consumer will buy at any price that is in his favor, and thus the dealers will be cut off from the car market and all the profits will go to the automaker" Rahimi said.
As of June 26, 2021, the sale price of Saipa’s Pride, the cheapest car getting manufactured is $3,200.
Iran Khodro’s Dena, another popular choice, is at $10,500 and Kerman Khodro’s Automatic JAC S5(AT), a more expensive option, sells for $16,000.