Richard Willsher
Richard Willsher

Africa

Richard Willsher discovers how trade and telecommunications infrastructure shape the current foreign exchange market in Africa as a whole and although South Africa is the continent’s leading electronic trading market, he outlines why we can expect to see growth in e-FX taking place in many other countries within the continent over the next few years.

First Published: e-Forex Magazine 47 / Regional eFX Perspective / April, 2012

A glance at the most recent Bank for International Settlements’ Triennial Central Bank Survey published at the end of December 2010 reveals the foreign exchange market activity on the African continent pales beside other regions. Africa and the Middle East together accounted for daily turnover of US$41 billion in all products in April 2010. This was out of a global total of US$3,981 billion of which the two largest regions were Western Europe’s totalled US$2,780 and Asia Pacific US$1,159. South Africa was the only African country listed individually by country breakdown in the BIS Survey and its daily turnover amounted to US$14 billion out of the US$41 billion mentioned above.  Declan Clements“Poor infrastructure, illiquid markets, regulatory restrictions, inconsistency of electronic price availability, relatively small ticket sizes and manual downstream processes represent an array of challenges to sell-side institutions in delivering a relevant offering,”Growth opportunity One...continued

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