The regulated foreign exchange market will be launched on August 12 to further bring in line with regulations the forex market in the country, the governor of the Central Bank of Iran said Saturday.
Abdolnasser Hemmati made the announcement in a meeting with Mahmoud Shekasteband, the CEO of the company that will oversee the new currency market, the CBI’s official website reported, according to Financial Tribune.
The Regulated Forex Market Company was registered in late April and has launched pilot trade since then.
Shekasteband discussed the latest banking and forex developments with the CBI chief and the two sides reviewed results of the pilot operation to ensure the smooth launching of the long-awaited mechanism designed to give a semblance of stability to the volatile currency market.
The regulated market was announced after the CBI decided to restore stability to the chaotic forex market. In the early stages, major foreign currencies will be traded in cash via an electronic platform in an open and transparent environment, the paper, which is Iran's first English economic daily in the country, wrote.
Traders in regulated market will deal in wholesale currency and retail forex trade will be the function of money changers outside the regulated forex market.
The market is being launched with the participation of banks and certified exchange shops under CBI oversight.
Iran Fara Bourse (the junior stock market) along with the Association of Private Banks and Credit Institutions, Association of Bureaux de Change Operators, representatives from public banks are key stakeholders in the new financial setup, according to the daily.