Fresh Call for Single Currency Rate
Economy, Business And Markets

Fresh Call for Single Currency Rate

Foreign exchange derivatives market could help boost confidence among businesses, a senior banking official said.
Correcting the name “foreign currency bourse” to “foreign currency derivatives market”, Abdol-Naser Hemmati, head of the Coordination Council of Public Sector banks said “A foreign currency derivatives market is what is intended to be launched not a currency bourse.”
Foreign currency derivatives markets carry risks arising from swings in forex rates as they go up and down which is the very nature of “fluctuation”. But since hard currency rates in Iran mostly go up, it cannot be called “fluctuation” and thus the derivatives market cannot function effectively, Hemmati told the news website Khabar Online. “That is why in the absence of a unified exchange rate system, launching a forex derivatives market would be an exercise in futility,” he noted.
The official argued that “A unified foreign currency rate mechanism is the platform on which businesses plan and purchase foreign currency securities through futures or options and cover possible risks arising from fluctuations in forex rates.”
In mid-December the Central Bank of Iran approved the launch of a foreign exchange derivatives market within the framework of a plan that was developed under the supervision of Securities and Exchange Organization.

Short URL : http://goo.gl/bQPcvN
  1. http://goo.gl/hpsYRz
  • http://goo.gl/dbK07a
  • http://goo.gl/4MYjsh
  • http://goo.gl/daHvQU
  • http://goo.gl/gh7BWc

You can also read ...

Gov’t Mulling Creation of Forex Open Market
The government has agreed to consider a business community...
Gioia Tauro, the port from where Gruppo Ventura shipped locomotives to Iran
From its headquarters in Calabria, the poorest, least-...
Samer al-Khalil
Syria is ready to establish a rail link with Iran through Iraq...
India Looks to Operationalize Chabahar by 2019
India is trying to make the strategic Chabahar Port in Iran...
No New Shopping Malls Allowed in North Tehran
Construction permits will no longer be issued for new shopping...
ICJ to Hear Iran’s Lawsuit Against US Over Frozen Assets
The UN's top court will in October hear a case brought by Iran...
Non-Gov't Public Entities Mandated to  Release Financial Reports by Parliament
Iranian MPs have voted to increase financial transparency of...
2nd Real-Estate Investment Trust Launched
The Iranian government on Saturday inaugurated the country’s...