To Unify or not to Unify; That is the Question
By Mahdi Goodarzi & Mojde Rezaee
In every sitting with foreign investors interested in Iran’s market, whether they intended to do FDI or FPI, fluctuations in foreign exchange rate in the country had always been on top of their concerns. Unfortunately, it became even worse when they would realize that there were no instrument and/or mechanism to hedge such volatilities and they were (and still are) usually forced to accept them and resort to indirect methods to secure themselves to the extent possible (this is, for instance, true for investors interested in the stock market and purchasing shares of companies which export their products). Below, we have tried to discuss the importance of defining a path to take steps towards FX rate unification in Iran, in addition to explaining attempts done so far.