33152
Forex Derivatives Market Vital
Economy, Business And Markets

Forex Derivatives Market Vital

Covering the risk of volatilities in the forex market is crucial to economic development, Hamed Soltaninejad head of Iran Mercantile Exchange said in a meeting with the Iran Institutional Investors Association. He added that establishing a foreign exchange derivatives market can help improve the other financial markets while making financing easier and more efficient. It could also help reduce the risk of trade for importers and exporters.
There is a direct correlation between a country’s level of economic development and the extent to which its financial markets are developed. He pointed to South Korea’s experience of creating a foreign exchange derivatives market saying that it introduced its securities to the world through this mechanism.
“The Mercantile Exchange provided us with good information about derivatives markets during the past eight years and also helped us launch the gold coins derivatives market. Similarities between the forex and gold coin markets would help us in establishing a foreign exchange derivatives market.”
Last week, the Central Bank of Iran approved the launching of a foreign exchange derivatives bourse under SEO supervision. The move is expected to hedge against fluctuations in foreign exchange rates through a variety of instruments, namely futures and options contracts.
The head of IME stressed the importance of attracting foreign direct investment for achieving the desired 8% yearly growth. He added that the ground should be prepared for encouraging foreign businesses to enter Iran’s markets. “We have to reform our economic structures and create markets that work based on international economic frameworks in order to gain the trust of foreign investors.”

Short URL : http://goo.gl/tXU2oc
  1. http://goo.gl/TnesPr
  • http://goo.gl/v4bYIn
  • http://goo.gl/HbwxcW
  • http://goo.gl/mBhZIU
  • http://goo.gl/IiC4hl

You can also read ...

BMI Outlines Forex Measures
Director of Bank Melli of Iran’s Foreign Exchange Department...
US’ Iran Policy Headed for Train Wreck With Afghan Policy
US President Donald Trump’s decision to pull out of the Iran...
With the US Out, How Can Iran Benefit From JCPOA?
In Iran, the only surprise regarding US President Donald Trump...
Apple Pays Ireland 1st Tranche of Disputed Taxes
Apple has paid €1.5 billion ($1.76 billion) into an escrow...
5-6% Flexibility in USD Rate Until March
Governor of the Central Bank of Iran said the exchange rates...
Mineral Projects Worth $3.6b in the Pipeline
More than $3.6 billion worth of mineral projects are to be...
Persian is the 15th most spoken language  in the world with 120 million speakers.
The amount of online content in Persian has observed a...
Bank Maskan Home Loans Up
Latest figures published by Bank Maskan, the agent bank of...

Trending

Googleplus