Option deals will help you meet the obligations of saffron exporters
Mohammad Reza Pour Abrahamy, the chairman of the parliament’s economic commission on setting up options for saffron options in the Iranian stock exchange, told IRNA, adding that derivative instruments, including futures contracts and the option of saffron on the stock exchange, both help increase producer power and The business sector provides the conditions for satisfactory overseas export obligations to be met.
He said that the commodity exchange as a transparent and legitimate trading platform created to create justice and transparency that reflects the real sector of the economy said that risk coverage is another advantage that is always in the use of Derivative tools have been proposed in this regard, the trading instrument of option contracts is one of the most important capacities in this section.
Pour Abrahamid emphasized that the development of derivative instruments on saffron would also cover the risks inherent in traditional transactions, as well as the development of investment capacity in the country. In addition to preserving the interests of producers, with the help of this instrument exporters’ obligations in the field of foreign markets are also timely.
The chairman of the Economic Committee of the Parliament, saying that the Option Trading Instrument is a multifaceted tool, said: It can be said that the launch of these transactions on the stock exchange on the export of saffron is an important and positive occurrence, which has led to a balance of prices in the market of this product it helps. As the launch of this instrument in the commodity exchange market, it covers some of the fluctuations and reduces price volatility so that the price of the product is insured.
Option contracts exclude saffron trades from the risk of fluctuations in prices, especially during the harvest season, and will cover the product with risk coverage in different parts of the market, Pobierabhimi said.
He added that the range of financial instruments for the stock market is increasing, it can help to balance the more logical parts of the market and can be part of the risks that were previously caused by the lack of tools Financially, fully covered.
The MP said on the internationalization of the sale of saffron in Iran’s stock exchange: “Whenever the chain of these products is completed on the market for any product, it brings about the efficiency, risk coverage and equilibrium for that market.” , Could turn that market into an international price reference for that product.
Pour-e-Ebrahimi added: “Commodity exchange by completing these financial instruments on saffron can become the reference price of the International Red Gold and will be introduced as the main axis of overseas transactions, in which other countries from such a market more stable prices Will infer. Therefore, the completion of the financial instruments chain on the stock exchange can contribute to the position and role of the stock exchange in determining global prices for exclusive products such as saffron.
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