The Johannesburg Stock Exchange (JSE) has announced the addition of three new currency futures contracts which will provide investors in exotic currencies with the opportunity to trade the exchange rate between the South African Rand and the Zambian Kwacha, Kenyan Shilling and Nigerian Naira.
The offering of futures contracts in the region is particularly useful for companies which are trading with the above mentioned countries, providing them with an effective tool to hedge their exposure to the local currency markets.
JSE’s General Manager, Warren Geers, shared, “With Africa being a global investment destination it makes sense for the JSE as a major exchange player in Africa to be involved in providing appropriate products to mitigate currency risk and exposure when dealing in Africa.”
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The JSE is delivering the new currency futures to the market in conjunction with Barclays Africa and Tradition Futures.
Lourens Harmse of Barclays Africa commented, “Our involvement with the listing of the African currency futures on the JSE further deepens Barclays Africa’s commitment to growing Markets participation in Africa. As part of our vision to be the ‘Go-To’ bank, we strive to give our clients superior execution and access to the continent through world-class and leading innovation.”
Andrew Gillespie of Tradition Futures explained in the company announcement, “It is a groundbreaking development to have a transparent, independent, well regulated platform to mitigate or assume FX risk in these African countries, against any other currency of their choice – that does not prejudice anyone, irrespective of size, domicile or nationality.”