Mercantile Exchange CEO’s report on activities in past year

Young journalists club

News ID: 3640
Iran » Iran
Publish Date: 13:17 - 08 March 2014
Tehran, YJC. Iran’s ME has grown by 28 pct. in the current year as told by the CEO who was talking about the organization’s role in national economy at a press conference.

CEO of the Mercantile Exchange Hossein Panahian speaking in a press conference in Kish provided comments on the prominent measures taken to expand the scope of Iran’s Mercantile Exchange.

"Through effective organizational system, the application of modern financial technology and tools, and risk management, the IME tries to increase the diversity in goods as well as in markets and to facilitate transactions,” stated Panahian.

Calling attention to procedures adopted by the Iran Mercantile Exchange including rate discovery, price oscillation risk management, creating investment opportunities, facilitating physical trade, and financial support, he maintained that through such methods, it is hoped that the business market grows more reliable, financial market develops, banks are lead to production sources, export is strengthened, and tax and customs capacities are boosted.

He further said "The Mercantile Exchange transactions in the physical and derivatives spheres in the past 11 months and 12 days of the current years have amounted to Rls591 trillion. The physical market’s share of the total value has been Rls402 trillion and the derivatives 189 trillion. This comes while last year’s transactions were worth Rls315 trillion. So there has been some growth there. But in the derivatives market coins worth Rls363 trillion had been contracted where we were to see a drastic reduction due to big oscillations in the international currency and gold markets.”

"In the past 11 months, 12.8 million tons of goods worth more than Rls212 trillion were dealt in the industrial and mine products on the mercantile exchange, showing 7 percent growth in value and 3 percent drop in the volume of the transactions. In the oil and petrochemicals hall also more than 10 million tons of goods worth Rls187 trillion were sold in the same period, showing 61 percent growth in value and 25 percent in volume. Also in the agricultural section, we had to see 265 thousand tons of goods exchanged worth Rls2,738 trillion, which showed 103 percent growth in value and 44 percent in the volume,” the IME CEO asserted,” Panahian stated.

Pointing to transactions conducted in the export hall he said "In the same period over 5 million tons of goods worth Rls43 trillion were dealt in the exports hall. Here also we had 59 percent growth in value and 35 percent growth in the transactions.”

He also provided comments on measures taken to renovate the organization’s IT standards and said "The infrastructure for communications with the brokerage companies through WAN and two-sided communications between the exchange and the brokerage companies via radio channel, MPLS and WIMAX, were created. Also expanding the long-distance transaction systems, necessary steps have been taken to operate online and secondary market transactions, standard parallel futures, and the customers’ transactions system.”


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