Iran Unveils New Forex Instruments to Boost Investment in Oil, Petrochem Sectors

Iran Unveils New Forex Instruments to Boost Investment in Oil, Petrochem Sectors
(Tuesday, October 28, 2025) 13:55

TEHRAN, Oct. 28 (NIPNA) – Iran’s Currency and Exchange Center has introduced a set of new foreign exchange instruments aimed at channeling investment into the country’s oil, gas, and petrochemical projects, a senior official said on Tuesday.


Ali Shahidi, Director of Commercial Currency and Exchange Operations at the Iran Currency Exchange Center, told the International Conference on Investment and Financing in the Oil, Gas and Petrochemical Industries that the center has launched foreign currency bonds and a currency pre-sale scheme to facilitate funding for large-scale industrial ventures.

“In the second half of the year, new segments of the exchange market will be launched in phases to provide secure platforms for capital flow and to support major exporters and investors,” Shahidi said.

He explained that the newly introduced instruments are designed to attract both small and large investors and direct the funds toward priority industrial projects. “In many emerging economies, foreign currency bonds are a significant source of financing for corporations, but in Iran, structural constraints and exchange rate volatility have limited their use,” he said.

The initiative, he added, seeks to institutionalize foreign exchange-based financing and reduce dependence on rial-denominated funding.

Under the new framework, companies can register and access funding more efficiently, bypassing complex banking procedures. The bonds, issued by licensed financial institutions and approved by the Central Bank, will be traded on Iran’s capital market. Issuance fees are set between 0.5% and 1.5% in the first year.

Shahidi said investment periods would range from one to four years, with principal repayment covered by proceeds from the sponsoring company’s exports. Exporters would fulfill their obligations using foreign currency earned through sales abroad.

He also announced plans to establish foreign exchange funds, licensed by the Central Bank, to attract foreign currencies held by the public through legal and transparent channels. “We estimate that over $3 billion in hard currency is currently held by individuals, which could be redirected into productive investments,” he said.

The currency pre-sale plan, finalized several months ago, will serve as a risk management tool for exporters and importers. “For example, an exporter expecting to ship goods in six months can pre-sell foreign currency today and receive up to 30% of its rial equivalent in advance,” Shahidi explained. Exchange rates for these future contracts will be determined through competitive auctions.

He emphasized that the goal of these programs goes beyond exchange rate control. “The objective is to link monetary policy with industrial strategy,” he said. “Since much of the investment in oil and petrochemicals is foreign currency-based, financing should also come through foreign exchange instruments to reduce pressure on rial resources and ensure sustainable returns.”

Shahidi concluded that the Exchange Center aims to establish a coordinated financing ecosystem in partnership with the Central Bank, the Securities and Exchange Organization, and the private sector — an ecosystem that could simultaneously stabilize the foreign exchange market and fuel investment in Iran’s strategic industries.

 


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