TEHRAN – Iran Mercantile Exchange (IME) expects the value of transactions in its financial markets to approach $20 billion by the end of the current Iranian year (late March), IME chief executive said.
Seyed Javad Jahromi said total turnover at the IME is forecast to exceed $40 billion by year-end, with financial markets accounting for about half of that figure, according to IRNA.
He said financial-market transactions have reached about $17 billion so far this year and are expected to rise close to $20 billion by year-end, adding that around 44 percent of the exchange’s total trading value currently comes from financial markets.
“This shows the market is gaining sufficient depth to play an effective role in economic growth,” Jahromi said at a capital markets financing conference held at the Iran Chamber of Commerce.
He said commodity deposit certificates are not only a financing tool but have also helped raise public awareness of commodities and market mechanisms, citing the gold market’s strong growth over the past two to three years.
Jahromi said new deposit certificates based on commodities such as copper and silver have been launched, drawing investor interest and expanding investment opportunities.
He said commodity deposit certificates can also underpin the development of derivatives, risk-hedging instruments, commodity funds and new businesses in warehousing, adding that experience gained in products such as saffron is gradually being extended to other commodities.
Jahromi said a recent cabinet decision allowing deposit certificates to be used as collateral would help reduce corporate financing costs, with the new instrument to be unveiled soon.
He added that the exchange is studying the creation of commodity funds in the mining sector to boost public participation and help finance mining projects and downstream industries.
EF/MA
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: tehrantimes.com
