Tuesday 2 October 2018

From sukuk to warrants, Iran works to deepen capital markets | Reuters

From sukuk to warrants, Iran works to deepen capital markets | Reuters:

Iran is developing a range of new financial products, from Islamic bonds to warrants and insurance-linked securities, in an effort to give local firms more funding options as sanctions put pressure on the economy. 

The Iranian rial has plunged 70 percent against the U.S. dollar in the free market this year, inflation has risen and foreign trade has been disrupted after Washington repudiated an agreement on Tehran’s nuclear program and reimposed sanctions.

But Iran’s financial system has been able to ride out past periods of sanctions, and officials say they are working on new products to stimulate capital markets activity. All the products are structured to obey Islamic principles, such as a ban on interest payments.

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