COMPETITION PUTTING PRESSURE ON THE SOFIA COMMODITY EXCHANGE
Vassil Simov, Executive Director of the Sofia Commodity Exchange, has declared this week the results of its last year operation. 819 deals have been made, amounting to totally BGL38.4MN. This is BGL5MN less than the previous period. The rason is mainly in the competition of the other local commodity exchanges - in Plovdiv and in Russe.
In the meantime, Georgy Mihnev, Chairman of the State Commission for the commodity exchanges and the market places launched the idea for establishing a State Agency, regulating the prices of various groups of food stuff. The agency will play in the market in cases of sharp variances of some quotations. Practically this will be a trade company, bu it will have social functions as well, said Mihnev. Its establishment will obviously not take place within the next couple of months. The Parliament will have to vote a law, and the MPs have not been contacted yet.
The Agency will buy foods when their prices fall under the international levels and will sell in cases of manipulative increase. In order to carry out such kind of operations, it will have to keep certain stock. The Agency will duplicate the functions of the State Reserve to a certain extent, said the experts. In certain extreme situations the State Reserve also releases part of its stock.