Head of the Securities and Exchange Organization said the SEO is willing to launch a market for currency futures (also known as FX futures) but noted that the Central Bank of Iran has the final say on how to implement any such plan.
"CBI believes that a spot market for currency should be established out of the monetary market, but as per the relevant laws, forex derivatives should be exchanged in the same way as currency futures contracts or forward contracts," Shapour Mohammadi was quoted as saying by IBENA news website.
The Security and Exchange High Council issued a directive three years ago that legalized currency futures contract deals in the capital market, he recalled.
"Essentially, securities should be sold in the capital market, therefore if a proper spot market is in place and a reference price is set, the capital market would be ready to launch a financial contract market for the securities."
Mohammadi added that details about the mechanisms of this new market as well as its launch time is contingent upon CBI decisions, noting that the capital market has already provided the infrastructure and are awaiting the CBI’s final decision.
Earlier last month, the CBI boss announced plans to launch a formal foreign currency market where deals can take place at “free rates” for the people's small needs and services.
