S.Africa’s JSE launches currency futures

by Trust Matsilele 0

The JSE has launched a new range of currency futures that are likely to help with integration of financial markets in the region.

George Glynos, chief economist from ETM Analytics told CNBC Africa that this new offering was an exciting venture as it brings to the JSE three new African currencies.

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The currencies include the Nigerian Naira, the Kenyan Shillings and Zambian Kwacha.

“The process will be involving three players which include the broker, the bank that makes the prices behind the platform is Barclays Bank and all this will be taking place at the JSE infrastructure platform,” said Glynos.

“We now have a platform where corporates, companies and hedge fund managers can hedge those exposures into those three markets by accessing those African future currencies.”

The chief economist added that this was a more sophisticated way of shielding companies from volatilities of the markets.

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Glynos said the three countries had been considered due to existing trade relations with South Africa.

“Trade between South Africa and these three countries has grown over the past ten years to about 10 billion per annum,” said Glynos.

He said though there were other currencies on the wings, Nigeria and Kenya had been considered now as there were in the top ten of the biggest markets in Africa.

Glynos added that Zambia and South Africa trade was in the region of three billion dollars per annum.