Tehran Stock Exchange to be resilient towards FX fluctuations!
– After massive impacts on Tehran Stock Exchange mostly due to the volatility of USD/IRR over recent months, a member of SEO’s high council announced three solutions on agenda in order to prevent future effects of such fluctuations. A) Establishment of FX-denominated mutual funds, B) Issuance of foreign currency denominated debt securities and C) FX-denominated hedging instruments (derivates) are among the “to do list” of Iran capital market regulator. According to the officials, SEO has now the required infrastructure to make mutual fund idea operational. Said funds are able to purchase Iranian banks LCs to exporters, Government or corporate FX denominated bonds or deposit in banks’ currency accounts.