BAKU, Azerbaijan, Dec. 28
By Klavdiya Romakayeva - Trend:
Some 1,195 forward transactions worth 1.4 billion soums ($133,639) were concluded at the Uzbek Republican Commodity and Raw Materials Exchange (UZEX) for the first time, Trend reports referring to the press service of UZEX.
It is reported that 17 types of products were sold at forward trading, including sugar, cement, cotton fiber, cottonseed oil, industrial cotton seeds, petroleum products and animal feed.
According to the information, 87 sellers and 244 buyers took part in electronic trading for forward contracts.
Forward trading on the Uzbek Republican Commodity Exchange has been held since March this year in accordance with the resolution of the Cabinet of Ministers of Uzbekistan on additional measures to introduce advanced information technologies in the activities of commodity exchanges and the consistent development of e-commerce.
This mechanism allows fixing the price for the goods supplied in the future and carrying out calculations in advance for the products at the market value.
With the help of a forward, local entrepreneurs and farmers can hedge against fluctuations in the prices of purchased goods, and commodity producers will be able to plan their activities more effectively.
It was noted that, the introduction of forward trading on the Uzbek Republican Commodity Exchange will serve as an important starting point for the formation of a futures trading mechanism, which is widely used in the world's leading exchanges.
Forward contract is a fixed-term contract, according to which the price of the goods is set at the time of the transaction and the delivery of the goods is carried out in the future at the specified time.
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