Reposting "Asre Bazar", “Certificates of deposit and forward contracts are among instruments IME has introduced to the market specified for the agriculture industry,” Hassan Amiri, deputy head of the Securities and Exchange Organization, said Monday.
The market has also introduced options and futures contracts to help cut risks of dealing at the market, he added.
The official said he believes that certificates of deposit is a proper tool for agriculture deals, arguing that the instrument will help increase transactions, gives a boost to cash market, explore prices on a daily basis, stabilize the market, improve quality standards of goods and avoid costly shipments among its other benefits.
He emphasized that the IME can play a key role in pricing saffron, an agricultural product that brings in millions of dollars in export revenue.
Amiri urged authorities to introduce new hedging and financing instruments to empower those involved in saffron business, making Iran the sole place that would price the expensive product.
He suggested that authorities introduce certificates of deposit for the saffron market and also a fund that could finance farmers and dealers.
IME officials say their key objectives in the upcoming year is to develop financial and hedging instruments, ease regulations and penetrate to other markets.
Source: SENA