Offering oil via Iranian Stock Exchange to spark off economic liberalization

Oil&Gas Materials 27 October 2018 17:39 (UTC +04:00)

Tehran, Iran, Oct.27


The Iranian government has recently broken the monopoly of oil by offering it via Stock Exchange, which is a positive step towards reducing the impact of sanctions, Kazem Doost Hosseini, Ex-Chairman of the Saderat Banks’ Guarantee Fund told Trend.

“The transfer of more activities of government such as exports to the private sector has always been a goal. Of course, the private sector with its networks can reduce the impact of sanctions, that’s why the government has granted its monopolies to this sector,” he said.

“So the launch of the Oil Stock Exchange is a positive step. The sanctions could spark off the economic liberalization.”

Referring to the demands of the exporters, he said that exporters criticize the administrative bureaucracy and issuance of paradoxical directives. In addition to addressing these problems, export incentives should be considered in order to expand exports, although the absence of incentives cannot be a barrier to the incentives of exporters.

According to the new regulations, exporters are supposed to inject their export earnings to the country's "economic cycle" through procedures set by the Central Bank of Iran (CBI). Exporters should bring back export revenues to economy, via selling hard currency to a bank or an exchange shop through an online system called NIMA.

The integrated Iranian FX platform, aka “NIMA”, aiming to facilitate the currency trades for market participants, was launched after massive controversial debates on the nation’s foreign exchange rate volatilities.

“The FOREX currency issues and the multiplicity of exchange rates has led to the issuance of a currency regulation by CBI, although it has never been successful in the past,” said Doost Hosseini.