The economy has yet to tap into the US$7.5billion global forex (FX) trading market – an electronic network for currency trading – experts have said, calling for a framework to position the country as a key participant in the burgeoning space.
Previously restricted to governments and financial institutions, market watchers say individuals can now directly buy and sell currencies on forex. With the market continuing to grow in leaps and bounds, they said the country cannot continue to ignore FX trading, especially as the economy faces real crises.
FX markets are made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers and investors, and a profit or loss results from the difference in price at which the trader bought and sold a currency pair.
Head of Electronic Banking, Universal Merchant Bank (UMB) and a forex expert, Dr. Myles Christian Hagan, stated that FX trading has the potential to cushion and absorb a significant amount of shock, making it suitable for the economy in dire moments.
“Technology is making things easier and digitalization is the new normal. Forex trading is one of the benefits that we can derive as a society from widespread digitalization,” he said.
To do this, however, he said: “We must create the necessary infrastructure and provide a proper regulatory framework that will make sure we benefit and reduce the risk for the youth that we are encouraging to equip themselves with skills in the field”.
Dr. Myles made these remarks in his address at the ‘Love in the market charity ball’ organized by the Women in Forex initiative, under the theme ‘The digital skills-gap and the future of jobs in Africa’.
Corroborating Dr. Myles, the president of Women in Forex, Gifty Annor Sika, mentioned that with the FX market considered as the most liquid market in the world due to the large volume of trading activity that occurs around the clock on daily basis, the country’s youth stand to gain great benefits when empowered to carry out genuine trading.
“If properly mastered, FX trading can deliver the youth from unemployment and boost the country’s gross domestic product (GDP). I know of people in this country that are analyzing for foreign organizations outside the country and are paid; so if we have a lot of youth coming into that space, it will open it up better,” she said.
Recommendations
Dr. Myles emphasized that for the country to get good benefits from FX trading activities, it is important for government to put in place infrastructure and regulations for citizens to trade. This, he said, is imperative as Ghanaians into FX trading are using various foreign platforms – thereby denying the country the full benefits of electronic currency trading.
He also recommended the creation of an enabling environment, which he said can be realized through public-private partnerships (PPPs).
