Iran Mercantile Exchange is planning to go beyond the Iranian market by expanding its international collaboration with the suppliers, traders and other mercantile exchange's across the globe, an official said.
The IME has planned to boost its cooperation with the other exchanges and absorb the suppliers to exclude intermediaries because of years of isolation from the world trading system.
The volume of trade in the IME is surging significantly and the commodities of over 83 foreign companies are being traded on the IME's trading floors, these foreign companies however are at the mercy of intermediaries in the local market.
"Various commodities are being offered from different countries including the US, while unfortunately intermediaries have the key role, and not the suppliers at the IME," Amin Afsahi, PR and foreign affairs consultant told Financial Tribune in an interview.
Afsahi added that the IME is already a member of the Federation of Euro-Asian Stock Exchanges. The FEAS is a non-profit international organization comprising of the main stock exchanges in Eastern Europe, the Middle East and Central Asia.
Afsahi also said that the IME has signed a memorandum of understanding (MOU) with the Belarusian Universal Commodity Exchange (BUCE) to boost the trades between Iran and Belarus and Eastern European companies, adding that "the head of BUCE is planning to come to Iran in November to discuss how to boost the bilateral cooperation."
Price referencing in internationally accepted trade magazines is another approach of the IME, which may enhance engagement with foreign traders over the prospect of doing business with Iran.
Considering its potential, the IME is gearing up to absorb investors and traders from across the world to directly participate in trade as Iran imports and exports various commodities in large volumes.
"Despite the limitation for foreign investors caused by the western sanctions over Iran's nuclear program, the brokerages can handle the entire procedures including the financial transaction for those who are afraid of doing business with Iran," Ali Hagh, head of the PR and foreign affairs told Financial Tribune.
As transparency is key in international commerce, the IME would be a distinctive platform for foreign suppliers and traders to grab the opportunity of doing business with Iran.
Since Iran is a frontier market with everlasting opportunities, the capital market, including the IME will be bolstered in the near future.
The IME was established on September 20, 2007 in accordance with the article 95 of the new law by the Securities Market of the Islamic Republic of Iran and following the merger of the agricultural and metal exchanges of Tehran. The merger marked a new chapter in Iran's capital market providing endless trading opportunities for the clients in and out of the country.
