President and Chief Executive Officer of Central Securities Depository of Iran, Dr. Mohammad Reza Mohseni, says a special working group has been convened to examine ways to connect the Iranian capital market to the world markets.
Dr. Mohseni made the remarks in a meeting with CEO of Iran’s Bank Mellat, Dr. Hadi Akhlaghi Feyz, at CSDI headquarters in Tehran. During the meeting, the CSDI President elaborated on the preparations his administration has made to lay groundwork for internationalization of the Iranian capital market. He said over the past two years, the CSDI has made extensive negotiations worldwide including South Korea to connect the markets of the two nations. Dr. Mohseni went on to say that the basic model to connect Iranian capital markets to South Korean ones through the financial instruments based on fixed-income securities such as Islamic Treasury Bill and Sukuk (Islamic bonds) is in the final stages and will be implemented in the future and as soon as of a number of issues regarding the exchange rate and inter-bank relations are settled.
The CSDI chief then called for two working groups to be set up; one to compile details in regards with the payment and settlement systems of transactions to hedge against the risks and another working group to expedite mutual cooperation to increase international interactions so that the sides can come up with operational guidelines to follow along the way.
Later on, the Bank Mellat CEO, for his part, said thanks to the nuclear agreement reached between Iran and the P5+1 group of countries, Bank Mellat has witnessed an incredible increase in its international activities since the implementation of the JCPOA (Joint Comprehensive Plan of Action.)
Dr. Hadi Akhlaghi Feyz said Bank Mellat has managed to obtain the required licences to establish a branch in the South Korean capital city of Seoul where it can offer all essential cooperation needed to help connect the capital markets of Iran and South Korea.
He, meanwhile, welcomed the initiative to set up working groups to increase Iran’s international interaction with the world financial markets and said, “We are all set to provide all necessary technical and technological infrastructure to that end.”
CSDI and Bank Mellat inked a Memorandum of Understanding in 2016 at the Tehran headquarters of Securities and Exchange Organization of Iran (SEO) to facilitate transfers of funds in and out of Iran for foreign investors and streamline foreign investment procedures.
Release Date: 6/12/2017