Iran to offer $5 billion on Forex bourse

Iran Materials 5 September 2012 13:23 (UTC +04:00)

Azerbaijan, Baku, Sep.5/ Trend F.Milad/

Twenty per cent of the National Development Fund (NDF) of Iran's assets, equalling $5 billion, will be offered on the foreign currency bourse, a member of the board of directors of the NDF stated.

According to the current year's budget law, 10 per cent of the NDF's assets should be turned into rials and be invested in the agriculture sector and 10 per cent in the industrial sector, Mahmoud Dodangeh said, the Mehr news agency reported.

President Mahmoud Ahmadinejad has said that the National Development Fund's assets would hit $55 billion by the end of the current calendar year (March 20, 2013).

According to the Fifth Five-Year Development Plan (2010-2015), the National Development Fund was established to transform oil and gas revenues to productive investment for future generation.

Iran transfers 20 per cent of its oil revenues to the National Development Fund.

Iran's foreign exchange trading market will be inaugurated by the end of the current calendar month of Shahriver (September 21), aiming to create a balance between the official and free market rates of foreign currencies, the ISNA News Agency reported.

The Central Bank of Iran has approved general outlines of launching a foreign exchange market, Finance and Economic Affairs Minister Shamseddin Hosseini told the Mehr News Agency.

The foreign exchange market is a form of exchange for the global decentralised trading of international currencies. In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency.