The benefits of foreign exchange exchange rates for stock exchange companies – Tejaratnews

According to Tejarat News, the Trade and Development Organization has announced in a letter how to return the currency from the export in the form of banknotes.

Accordingly, the exporter or importer at the entry points of the country, after the customs formalities, delivers the banknote resulting from the export to the branches or counters of the National Bank of Iran located at the entry points.

The National Bank of Iran also calculates the rial equivalent of the delivered banknote based on the purchase rate of the banknote listed in the National Exchange of Iran board and proceeds with the delivery of its receipt (in the name of the issuer or issuers) to the issuer or importer of the banknote.

Exporters can receive Rials in their Rial account at any time by referring to the foreign exchange branches of National Bank of Iran and presenting a receipt.

It is obvious that the National Bank of Iran will settle the issuer’s obligation based on the currency delivery date.

The exporters who have imported banknotes into the country before the implementation of this circular, by visiting the foreign exchange branches of National Bank of Iran and submitting a declaration of currency entry into the country, regarding the sale of their currency to that bank based on the day’s rate of purchase of banknotes listed in the exchange table. Iran’s National and to fulfill their export obligations.

This means that exporters will henceforth convert their currency at the exchange rate and will no longer trade at half the rate.

But can this resolution affect the stock market?

Some experts believe that if exporters active in the stock exchange exchange their currency at the exchange rate, they will earn more profit and experience better conditions.

Currently, the main problem of exporters is the exchange rate with the budget rate of 23 thousand tomans and in the best case with the price of half a dollar, which has a difference of about 30% with the exchange currency, and this price difference leads to the loss of the exporters.

Foreign currency exporters’ profit

In this regard, Helen Esmet Panah, a capital market expert, told Tejarat News: “In the first place, it is not clear whether this circular will be implemented or not, as this is the concern of the exchanges, and also the determination of the fee paid may also cause the reaction of the issuer.”

He explained: But regardless of these issues, considering that the dollar has reached more than 43 thousand tomans in the exchange table, it has an advantage in this regard.
One of the benefits of this circular is to create a competitive advantage between export companies, also, the exchange rate exchange rate helps to adjust the exchange rate, if applied, this will cause liquidity circulation in the exporting companies, and more importantly, the exporter is free from the limitation and mandate of the exchange rate. The exchange rate will take a distance.”

This university lecturer said: “Given that the fundamental variables do not show a drop in the dollar and the budget assumptions clearly show that the dollar is not going to have a particular decline and the government has almost accepted the growth of the dollar; Therefore, this issue cannot be to the detriment of the exporter. »

Esmet Panah continued: “The price range is between 28,500 and free dollars, and the price of the exchange is very high, and this determination of the exchange rate can be an advantage for the exporter in any case.”

Disadvantages of the design

Referring to the problems of this circular, this capital market expert said: “But there are two basic problems in this; First, why isn’t a meeting with the stakeholders held before presenting the circular so that there is no problem and reaction in the implementation of the circular?
“Also, the issue of multi-rate currency should be basically solved and it is problematic for the capital market.”

Finally, he stated: “With the exchange rate of the exporters, we will see the improvement of the income of these exporters in the stock market and the economic environment of the country.”

It seems that with this approval, export sales will be closer to agreed sales and we will see more exporters favoring exports, and this increase in exports can have a positive effect on the stock market and the country’s economy.

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