Biden’s Victory: Good or Indifferent?

It will certainly be very difficult to estimate and analyze this issue because it depends on many variables. In the short term, Biden’s victory in the election will create a positive psychological atmosphere in the Iranian market and refresh hope in many businesses. For this reason, it may be possible to compare Biden’s choice with the 2016 JCPOA. When a large number of international companies left for Iran and Tehran hotels faced the problem of a lack of capacity. Iran’s oil exports suddenly increased significantly and the inflamed atmosphere gave way to a promising atmosphere in the country. The hope of improving the situation is sometimes a great achievement in itself. Undoubtedly, the most important outcome of Biden’s choice in the short term is this “hope for improvement” for businesses, manufacturing units, and the public; it is tangible and positive. This positive hope and atmosphere can strengthen the Rial against the U.S. Dollar, reduce the price of gold, and boost a large part of the capital market in the short term. In the second step, many international companies will plan to enter the Iranian market. They know that they still have a long way to enter the Iranian market, but they cannot prepare themselves for possible options. Therefore, they will prefer to pursue the possible entry into the Iranian market as a serious option. These positive results will also be reflected in macroeconomic indicators such as declining inflation, growing government revenues, reducing government concerns about the budget deficit, and improving the recession in the country. But there is no guarantee that these conditions will continue in the long run. It is very difficult to comment on the long-term results. It may be expressed that if an agreement is to be reached; It is more likely to agree with Biden than Trump. So the Blues are probably a better option than the Reds, and at least we can hope for a reduction in tensions in the next two years, and that reduction can be a significant achievement.

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