An estimated 7 million gold coin bonds, the equivalent of 70,000 Bahar Azadi gold coins were sold in the capital market up until December 20 and are seen as pushing gold coin prices higher in the market, IBENA reported.
The Central Bank of Iran’s gold coin bonds are tax-free and real persons can buy up to 100 Bahar Azadi gold coins.
The CBI launched the initial public offer for the sovereign gold bond at the Iran Mercantile Exchange (IME) in November.
Maturity of the SGBs is six months and can be liquidated in cash at maturity date based on the average price of gold coin and bank certificates of gold coin deposits on the last trading session. The CBI guarantees repayment.
Moreover, investors and businesses can use the bonds as collateral when taking out loans.
The noticeable jump in SGBs offered by the CBI is seen as a contributing factor in pushing gold prices higher in recent weeks. SGBs were traded at 1.726 million rials on Wednesday.
In bullion-related news, the popular Emami gold coin bought 183.8 million rials, unchanged on the day. Half Bahar Azadi coin lost 0.42% and was traded at 120 million rials while the Quarter Bahar Azadi coin was down 1.18% at 892.5 million rials.
Forex Bonds
The CBI started issuing foreign currency bonds in mid-November as a part of a plan to stabilize the chaotic forex market. Per the latest figures, more than $1.44 million forex bonds have been bought so far.
Forex bonds are offered at the state-owned Bank Melli and those interested can buy between $1,000 and $4,000 bonds with the national currency.
Contracts have a maturity date of three-months and will be settled in cash either in dollars or rials subject to the owners' choice and be calculated at rates in the regulated market, known as the Iran Currency Exchange.
Foreign currency bonds are non-transferable and taxable.
Offering forex bonds is another central bank move following its visible inability to and control the high and rising currency rates that have reached historic levels in recent months.
The US dollar paused its upward trend in the free market on Wednesday to buy 380,500 rials, down 2,000 rials or more than 0.53%.
The euro lost 1.73% and was quoted at 404,120 rials, the UAE dirham gained 0.73% to be tagged at 108,600 rials, Eqtesad News reported.
