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FNC Middle East analyst Walid Phares on why sanctions are creating an Iranian stock market boom.
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All right on to the Middle East now the latest sanctions are meant to cripple Iran but take a look at Iran's stock market he did on why year.
-- it's up about 30%.
In the past three months it's all because -- citizens are basically being forced to invest in domestic companies since sanctions are prohibiting them.
From investing outside the country between this.
Story we're telling you about that Reuters -- reporting -- smuggling -- gold from Turkey Iran is doing everything it can to preserve its wealth in spite of the sanctions.
Joining me now -- response.
Middle East expert Wally Ferris welcome back to the show.
Thank you.
-- are you surprised by the boom in the stock market do you think that.
It is sort of artificially driven by eight you know the lack of the ability to invest outside that it could collapse.
I'm really impressed by the fact of the Iran regime despite the sanctions reporting is basically making this happen I mean we look at the stock market in -- And that's not a country under sanctions and reason is mini -- that.
We have created -- that are efficient but in a very limited right.
And the -- of these sanctions over put along without allies is to put pressure on the public remember a few weeks ago but in the value of the money there was going down.
There -- demonstrations moving and putting pressure against the regime so the regime basically did an influx.
A vitamin I -- -- more my name more cash.
And I know this is precarious it could go down but that means that the regime is not really isolated they are having business coming out of Iraq.
Are they with the very important financial place so they -- maintaining this for one reason to outlast us.
They want to create conditions in the region so -- -- -- -- say okay we'll -- negotiate would you.
Do you know it I mean it it's called the topics I think the Iranian stock exchange is it priced in re also I mean -- -- it's going up 30% is not about as much as he.
Rial has inflated over that same period of time I mean I think it's up 70% over the past year -- some of their year to date but it was.
I mean it's been 40% about the same time period so maybe this is just a reflection of inflation.
It could be but what the problem in those -- to look at the big picture is that you can't actually investigate what is that we situation on the right.
Data it is not that liberal democracy is not that Wall Street and they don't have one branch of government look and other branch of government.
I mean we may see their -- that this could be an inflation and everything would collapse we're interested in what -- -- is this to bide time rankings are sections.
Yeah I meaning you couple that with the idea that you know writers did this great investigation into how.
They're basically smuggling gold bullion into the country.
Turkey was sending announcing cases it's going through -- It's been about two billion dollars in the last month or so and it's gold pouring into the country to deal with the fact that they're having this inflation.
That's a result of the sanctions so are they doing a really effective job putting all these things together does -- mean they're putting it they're doing a really good job of getting -- the sanctions.
Look very busy in -- in Iran is not -- -- in the economy of the country first.
Its interest -- in its own economy and I'm always make a distinction between the economy of the regime the at the capacity to sustain the long promised survival of the resume on the one hand.
One of their middle class lower cost the economy of the country is going up but they're bad is this their bet is that if they can deploy that cash if they can invest -- People inside Turkey and -- as -- just mentioned in Dubai.
Those will be the defenders the perspectives of the Iranian economy and at the end of the day as -- set.
They want to see at one point that the United States this administration the next administration say okay we're gonna stop the section that's called for negotiation so everything they lost -- could bring it back.
If that survived the sentence.
At the end of the day they just gonna end up with the nuclear weapon kind of no matter what happens here.
Look if you don't change our policy this policy has not stop them so it really gonna change that policy or -- partner with the Iranian public.
The top of that -- that -- third option and unfortunately at this point in time.
The administration the Obama -- has chosen to wait if you wait too long they may get that weapon in the near future.
Well it thanks for coming on the show we appreciate it thank you.
