Iran commodities exchange eyes launching currency market (Exclusive)
Tehran, Iran, April 16
By Kamyar Eghbalnejad – Trend:
Iran Mercantile Exchange (IME) has expressed interest in launching a derivative market for offering foreign currencies.
“The infrastructure for launching a currency derivatives market within the IME has been created and we are currently prepared to launch the market as per the decision by the policymakers,” Hamed Soltaninezhad, the head of the IME, told Trend.
Speaking about a recent decision by the Iranian authorities on unifying the free market and official currency exchange rates, he said that the decision has brought about calm to the market.
“Both derivatives and spot markets have become calm following the decision on unifying the currency rates."
“Pricing commodities and setting base prices will take place through a single currency rate. I believe the decision will lead to a better situation in the commodities and futures markets,” he said.
Iran’s currency, the rial, traded at 40,000 to the dollar last year, recently plunged to 60,000 rials per dollar on the open market rates.
The government, in order to confront the weakening national currency, announced its plan to unify official and free-market exchange rates for the rial in favor of a single rate at 42,000 against the US dollar.
Central Bank of Iran has also imposed a ban on the sale of foreign currencies at exchange shops, under which the exchangers no longer have the right to buy, sell, or transfer foreign currencies.
The IME saw a growth of 44 percent in the value of trades over the last calendar year, which ended on March 20, with a total trade value of 1.17 quadrillion rials (about $26.5 billion) of commodities and securities.