Currency board to be launched for bonds


We are working to develop a currency board for bonds, because it is an attractive option for foreign investors, Managing Director of Tehran Stock Exchange said.(SHADA: TEHRAN) — During the Muscat meeting attended by more than a hundred foreign investors from different countries such as England, Germany, Lebanon, Netherlands, Pakistan, UAE, Oman, and Iran, Hassan Ghalibaf Asl Managing Director of Tehran Stock Exchange described the investment environment in Iran.

In Iran Capital Market Panel, Ghalibaf Asl pointed to the attractiveness of the market and said: The value of Tehran Stock Exchange is now more than a hundred billion dollars and its debt market has huge growth potential.

Tehran Stock Exchange has a history of fifty years and with the participation of 37 industrial companies it is one of the experienced and diverse exchange markets in the region, he stated.

Liquidity is one of the most important challenges for emerging stock markets in the region, but liquidity in Tehran Stock Exchange has a good situation compared to others, Ghalibaf said, adding: Participation of foreign investors will increase the market’s liquidity.

Iran’s capital market will witness the presence of large foreign investment and pension funds in the future, he stated.

As to the corporate governance in Iran, Ghalibaf said: To establish corporate governance in the capital market good works have been conducted during the past five years.

We are working to develop a currency board for bonds. It seems the currency board may be attractive for foreign investors, he noted.

On average, Iran’s capital market has an initial public offering per month which is a big attraction for investors, Ghalibaf stressed, adding: The price-earnings ratio is very low at Tehran Stock Exchange and the market is ready to raise funds.