SEO head stresses IME’s role in Iran’s economy

EghtesadOnline: SEO head Shapour Mohammadi, at a meeting with Justice Minister Mostafa Pourmohammadi, discussed the IME’s role in Iran’s economy and financing businesses and corporations in a transparent trading groundwork.

News ID: ۷۷۷۹۴۹

25 July 2017

According to the report by the IME’s International Affairs and PR, the meeting was held in presence of Mostafa Pourmohammadi, the Minister of Justice of Iran, Mehdi Amiri Isfahani, the chairman of Suspending Organization of Iran and the Minister of Justice deputy, Shapour Mohammadi, chairman of the Securities and Exchange Organization (SEO), Hamed Soltaninejad, CEO of IME, and a group of IME’s senior managers.

Price Discovery through Mechanism of Matching Supply and Demand in IME

During this meeting, the Minister of Justice of Iran outlined IME’s advantages in the economy and stressed that from a logical and economical point of view and aiming at price stability for various commodities we need to recognize IME’s potentials and the government must approve IME’s authority in price discovery for all commodities based on the mechanism of matching supply and demand, Mehr news reported.

Mostafa Pourmohammadi highlighted that the trading turnovers of Iran must be taken place in a transparent atmosphere and the IME provided this groundwork. In addition, transparency in the market will provide more stability in prices and will facilitate license issuing system for importing enough and sufficient commodities in the country.

IME’s Major Privilege, Transparency and Stability in Prices Simultaneous with the Elimination of Economic Rent

Chairman of SEO, over this meeting pointed to the IME’s role in creating more transparency and price stability simultaneous with the elimination of economic rent and stated that according to the Article 18 of the Law for Development of New Financial Instruments and Institutions and in line with facilitating implementation of general principles of Article 44 of the Constitution, the government is obliged to exclude acceptable commodities on IME from enforcement of the pricing rules, so that through this transparency in the market speculation on various commodities has reached its minimum.

On the variation of commodity being offered on IME, Shapour Mohammadi emphasized that we do not have any restrictions on offering the commodities, so that, according to the conditions in the instructions, various commodities can be offered on this market. In other words, different commodities can be traded on IME provided that the offering is continued by the supplier and that they are homogeneous and have the necessary standards.

Regarding the possibility of market adjustment for chicken in the country via trading day-old chicks on IME, the chairman of the SEO said that one of instances of price stability provided by IME is trading day old chicks that in case of development, it will help supplying chicken at the reasonable prices in the country.

IME’s Collaboration with Suspending Organization of Iran

Over this meeting that was held in IME, Hamed Soltaninejad considered trade of commodities on IME as one of the instances of network sales and said that regarding the network sales and in some other areas we are negotiating with Suspending Organization of Iran to provide the groundwork of trading through network sales on IME and with high transparency in terms of pricing.

CEO of IME, presenting a history of the activities of this company in the capital market of Iran, described the performance and role of IME in transparency of transactions and prices of various types of acceptable products and commodities in the market and its position in the capital market and provided trade statistics in different markets on IME.

Then he pointed to the elimination of the economic rents on commodity market through IME’s transparent mechanisms and stated that the IME’s total trade value reached to the 810,000 billion rials over the last year which is the highest level during the IM’s activity. In other words, this value accounts for 6.5% of the total GDP of the country.