A lecture by Ellen Kountz, Director of the Department of Finance on Forex Operations in Africa was held at INSEEC last February, whose aim was to show students of this world-renowned business school that deals with emerging finance in around the world and Forex trading is one of the best examples of this.
What is the profession of a Forex trader?
Forex (Foreign Exchange Dealer) operations concern all branches related to currency exchange, and the Forex trader is the name given to the professional in charge of currency exchange or exchange operations (currency dealer in French). This profession tends to develop in view of the multiple world monetary exchanges (167 currencies on Travelex) and Africa has been very active in the Forex markets for several years.
Africa, a leading Forex trader
On the international Forex market, the US dollar accounts for 87% of trades, ranking first among the top 10 currency exchanges. However, no African currency is represented in this ranking as the African continent has become an expert trade in africa regarding these currencies. The explanation lies in the fact that digital currency has taken an important place in the continent’s monetary exchanges (mobile payments are the norm) and that they do not compete with existing fiat currencies. The move to mobile for all professional transactions has allowed, for example, virtual electronic banking to develop more rapidly on the African continent than in Europe. This mobility and the use of the Internet, which costs less than a fixed line, has generated an expansion of financial exchanges between African countries and internationally, resulting in an increase in the number of Forex traders who are becoming increasingly professional. .
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 through Forex. Since the arrival of Covid-19 in Africa, the 54 countries of the continent have exploded in terms of Forex trading transactions: confinement, the absence of international physical exchanges have pushed global economic actors to transit on online Forex trading platforms such as Avatrade (3 ° 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! Opening up to international financial markets through online trading and the possibility of integrating a market that represents almost 5 trillion dollars a day can only encourage the vocations of Forex traders. Africa is a continent that emerges from its economic stagnation linked to its postcolonial history. American and Chinese investors are in direct competition with Europeans, who no longer have the upper hand on African markets. The period of Eurocentrism has come to an end and this is felt at the political and economic level of many African countries. China has thus signed about 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 profitable business options 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 follow and be accompanied by one of the best Forex trading platforms in Africa.
- What is the profession of a Forex trader?
- Africa, a leading Forex trader