The ground is prepared for the establishment of a foreign exchange future market in the near future, head of the Securities and Exchange Organization of Iran (SEO) said, Iranico reported on Monday.

“We have the necessary software infrastructure to establish a forex future market,” Mohammad Fatanat said on the sidelines of a conference on Empathy and Rapport, Economic Renovation and Employment.

He said the new market could become an independent bourse or operate under one of the existing exchange markets.

A forex future market allows the exchange of one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date. Iran’s forex future market will enable investors to carry out transactions for the next three, six or nine months, the official said.

Fatanat stressed that the market is designed to allow industry owners to concentrate on production without having concerns over the fluctuation in foreign exchange rate.

By Financial Tribune