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The Johannesburg Stock Exchange, the largest and most liquid on the continent, has listed three African currencies on a new foreign exchange futures platform on Friday. The JSE said this would offer investors exposure to African economies in a relatively risk-free manner.
With a favourable exchange rate for many international currencies, you'll find South Africa an inexpensive destination. And an easy one - our financial institutions are world-class, with no shortage of banks, bureaux de change and automatic tellers.
Trade on the JSE's Currency Derivatives market has more than doubled in the past year, as investors reacted to a turbulent world economy by seeking more complex structures in order to hedge their specific risk profiles.
Standard Bank has launched JSE-listed currency reference warrants, a first for the South African market, in response to the growing popularity of currency trading in the country.
The value of currency futures contracts traded on the JSE's Currency Derivatives Market recently broke through the R100-billion mark, with trade volumes surging over 100% year-on-year, despite the global economic downturn.
Trading in currency options is set to become easier and more accessible with the introduction of South Africa's first currency options market maker, Absa Capital, which the JSE believes will increase participation in its well-established currency derivatives market.
Zimbabwe may have reached a watershed with the seemingly innocent decision to allow its people to use any currency of their choice in their daily lives – South African rands, British pounds, US dollars, euros and what have you, writes JP Landman.
Investors on the JSE's Yield-X will now be able to invest in currency options, which like currency futures allows investors and speculators to benefit from the movement of the rand against other currencies, but differs in that it comes with a "built-in insurance policy".
South African stock exchange operator the JSE is set to launch a currency futures market that will give retail investors access to offshore foreign exchange markets while giving added stimulus to the country's economy.