Speaking at the Third Conference of Top Iran
Mercantile Exchange Performers on Tuesday, Seyed Ali Madanizadeh said
strengthening production and investment is central to the ministry’s agenda.
“The introduction of forex-based funds and securities will not only provide
financing but also help manage exchange rate risk, enhance economic
predictability, and channel liquidity toward large-scale productive firms,” he
said.
Madanizadeh identified price controls and limited
access to affordable financing as key obstacles to higher productivity. “Iran’s
financial system remains heavily bank-dependent, while the capital market’s
role is limited,” he said, noting that roughly 75% of national output is
generated by large, capital-intensive industries, even though small and
medium-sized enterprises (SMEs) account for most employment.
He urged that major industrial companies shift to
capital market financing to free up banking resources for SMEs, adding that the
ministry’s top priority is building public trust and creating a more
predictable economic environment to attract household savings into the
securities market.
Mobilizing public savings through the Mercantile
Exchange
The minister said new financial tools and
investment funds are being developed to redirect household savings from
speculative and non-productive markets — such as foreign currency — toward
industrial production. “The first step in this direction has been taken today
through the Iran Mercantile Exchange,” he announced.
Madanizadeh emphasized that the ministry’s
strategy centers on supporting the capital market, expanding financial
instruments, and channeling public funds into productive investments to spur economic
growth, job creation, and market stability.
“Encouraging large firms to finance through the
capital market boosts investment motivation, prevents capital flight, and
transforms household savings into productive capital,” he said. “These policies
will help strengthen production, employment, and overall economic stability.”
Currency-linked instruments to curb exchange
volatility
The minister added that the development of
currency-based and futures instruments in the Mercantile Exchange will be a key
policy tool. “Forex funds and bonds will soon be launched to attract small
investors’ capital toward major industries while providing the necessary
financing for their investment and working capital,” he said.
“These instruments will not only facilitate funding
but also enhance companies’ ability to hedge against exchange rate fluctuations
— a capacity currently lacking due to the limited availability of derivative
and financial tools,” he added. “Expanding futures contracts will enable
businesses to hedge against price volatility, thereby improving market
predictability.”
Madanizadeh said the Production and
Infrastructure Financing Act will activate collateral and guarantee fund
systems to support these initiatives. “The Supreme Council of the Stock
Exchange will approve the relevant regulations in the coming weeks, and the
Iran Mercantile Exchange is expected to unveil these tools within a month,” he
said. “They will allow small and medium-sized enterprises to use their assets
as collateral and gain access to affordable financing.”