Iran to launch first foreign currency investment funds next week

Iran is set to launch its first foreign currency investment funds as early as next week. Developed through cooperation between the Securities and Exchange Organization and the Central Bank, these funds aim to attract foreign currency held by individuals and legal entities into productive economic activities.

Ali Akbar Iranshahi, head of the investment fund supervision center at the Securities and Exchange Organization, stated that principle approvals for two currency funds have been issued. The funds are designed as ‘issuance and redemption’ type instruments, allowing investors to enter the fund using cash or foreign currency transfers and receive both the principal and returns in foreign currency upon redemption.

Expected annual returns are projected to be between 3% and 4%. The funds will invest in fixed-income foreign currency assets, specific foreign currency deposit certificates, and other authorized investment tools. The registration process for the legal entities of these funds is currently underway, with subscription licenses expected to be issued approximately one week after formal establishment.