The instructions of the central bank for buying from the commodity exchange – Tejaratnews
According to Tjajart News, it is possible to use promissory notes, electronic bills of exchange and long-term domestic letters of credit for settlement of transactions. Commodity Exchange has been prepared.
According to the Young Journalists Club, based on the instructions for using credit instruments in commodity exchange transactions, buyers of goods from commodity exchanges can use accrual instruments for settlement and pay the amount to the bank when due.
This instruction has been prepared based on the duty stipulated in Clause A, Note 2 of the Budget Law 1401, with the participation of the Central Bank, the Ministry of Economic Affairs and Property, and the Commodity Exchange.
According to the instructions sent to the banks, it is possible to use credit instruments such as promissory notes, electronic bills of exchange and long-term domestic letters of credit for settlement of transactions. Commodity Exchange will be provided. This issue is an important step towards financial development and can have extensive economic effects.
Advantages of using accrual instruments in the commodity exchange
With this new possibility, buyers of goods from commodity exchanges can use accrual instruments for settlement and pay the amount to the bank at the due date.
The goods seller can also sell the received bonds in the secondary market or use the same bonds to buy raw materials. Finally, the final holder of Gam bonds can receive the bond payment with the guarantee of the issuing bank at maturity.
This method, while helping to finance economic enterprises, can also help to reduce the dissatisfaction of banks. In order to operationalize this plan, a special operational working group is formed in the central bank to guide the work and remove implementation obstacles on a regular basis.
Gam papers in commodity exchange transactions
It should be noted that from the beginning of the issuance of Gam bonds in February 2019 to this date, a total of nearly 26 thousand billion Tomans of Gam bonds have been issued by banks. About 17 thousand billion Tomans have been issued in the last two months. In recent months, due to the amendment of the step instructions and making its transfer to the capital market optional, increasing the maturity of bonds, increasing the credit limit of companies and implementing educational and promotional programs by the central bank, the acceptance of these bonds has increased.
In addition to the increasing process of issuing Gam bonds, the variety of companies applying for bonds and the depth of chains have also increased. In recent weeks, a wide range of different industries, including automobile industries, household appliances, electronics industries, basic metals, chemical industries, food and agriculture industries, pharmaceutical industries and chain stores have used these bonds.
It is expected due to the possibility of using Gam papers in transactions Commodity Exchangethe share of this tool in financing the working capital of production will increase.