What if the future of Forex trading was in Africa?

Last February, a conference was held at INSEEC given by Ellen Kountz, Director of the Finance Department on Forex trades in Africa, the aim of which was to show students from this world-renowned business school that trades related to emerging finance around the world and the Forex trader is one of the best illustrations of this.

What is the profession of Forex trader?

The trades of Forex (Foreign Exchange Dealer) concern all branches related to the exchange of currencies, and the Forex trader is the name given to the professional in charge of the exchange of currencies or foreign exchange operations (currency dealer in French). This profession tends to develop in view of the multiple world monetary exchanges (167 currencies on the Travelex) and Africa has been very active in the Forex markets for several years.

Africa, a major Forex trader

Africa, a major Forex trader

On the international Forex market, the US dollar represents 87% of the exchanges, placing it at the top of the Top 10 currency exchanges. However, no African currency is represented in this ranking while the African continent has become an expert in trading in africa regarding these currencies. The explanation lies in the fact that digital currency has taken a large place in monetary exchanges on the continent (payments via mobile are the norm) and that they do not compete with the fiat currencies already present. The move to mobile for all professional transactions has enabled virtual electronic banking to develop more rapidly on the African continent than in Europe, for example. This mobility and the use of the internet, which costs less than a landline, has generated an expansion of financial exchanges between African countries and at the international level, resulting in an increase in the number of Forex traders who are becoming more professional. in addition.

The evolution of the Forex market in Africa

South Africa is certainly the country where Forex has spread the most in recent years thanks to its very liberal economic policy, in 2017 there were 19 billion US dollars in transactions via Forex. Since the arrival of Covid-19 in Africa, the 54 countries of the continent have exploded in terms of Forex trading transactions: confinement, absence of international physical exchanges have pushed global economic players to transit on online Forex trading platforms Avatrade type (3rd online trading platform in Africa, with a high regulatory rating). These Forex traders have thus developed the market with an increase of almost 477% in 2020! The opening to international financial markets through online trading and the possibility of integrating a market representing nearly 5,000 billion dollars daily can only encourage the vocations of Forex traders. Africa is a continent emerging from its economic stagnation linked to its postcolonial history. American and Chinese investors are in direct competition with Europeans, who no longer hold the upper hand in African markets. The period of Eurocentrism has come to an end and this is felt at the politico-economic level of many African countries. China has thus signed nearly thirty bilateral agreements with Africa and the Yuan is the second most traded currency on the continent.

Becoming a Forex trader therefore seems to have become one of the most lucrative options in terms of business on the African continent, and this, quickly and efficiently. But like any job related to finance, it can only be profitable if you are trained in financial exchanges, follow the economic activity of the assets to be followed and be accompanied by one of the best Forex trading platforms in Africa.

Summary :

  • What is the profession of Forex trader?
  • Africa, a major Forex trader

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