Group Highlights Benefits of Forex Trading

Michael

Staff member
Administrator
UF Member

In order to tackle the low level of income as well as high level of unemployment in the country, organisers of the FXYear conference has advised Nigerians to embrace forex trading.


Speaking at a media briefing in Lagos ahead of its conference, the Chief Executive Officer, FXYear, Mr. Kelvin Emmanuel explained that with market of $5.2 trillion daily, the forex market has opportunities for investors and traders.


According to Emmanuel, the New York Stock Exchange which is the most liquid market in the world has a capitalisation of $25 billion daily.


“So, if the most liquid stock exchange in the world has a capitalisation of $25 billion daily, and the forex market has daily turnover of $5.2 trillion, then there exists a lot of opportunities for everyone.


“The forex market is the most profitable market in the world even if there are associated risks and it is an answer the rising rate of unemployment in Africa. It can be a key to creating jobs for young people,” he argued.


He noted that forex is traded by banks, hedge funds, asset managers, pension managers, investment bankers, among others.
“As a matter of fact, 55 per cent of bank earnings come from treasury and a major part of treasury operations comes from the forex market. So, the market is so capitalised. That is a key reason why the FXYear conference is very important,” he added.


Emmanuel expressed dissatisfaction that the naira goes for about N170 to a dollar, which he said is very high. “This conference is a platform for us to canvass for instituting a forward market in Nigeria. A forward will allow those that trade on dollar to be able to hedge their bet. In other developed parts of the world, there is a forward market,” he added.


They however stressed the need to establish a framework for the regulation of the online forex market, pointing out that just like other businesses, there are also risks associated with online trading.


On his part, a Currency Analysts at Forex Time Trading, West Africa, Mr. Bade-Ajidahun Oladahun blamed the weakening of the naira against the dollar on the heavy dependence on imported goods.


“There are some economic decisions that needs to be done to enhance the rate of the naira. Few decades back, the naira used to be as strong as the dollar because the country used to do more of exportation, and as you know, when there is exportation, people tend to buy the local currency.


“But today, even toothpick is being imported into the country and that put a lot of pressure on the naira. So, there is need for the country to do more of importation of agric produce such as cocoa, cotton, among others so as to boost the value of the naira,” he added.
The conference holds between January 12th and 13th 2015 in Lagos. The FXYear is also a platform that brings together, stakeholders in the online forex market.


The event is expected to be the convergence of 1000 key decision makers all around the continent. The experts would be made up of investment bankers, hedge fund managers, policy makers, etc.


The Minister of Trade and Investment, Mr. Olusegun Aganga is expected to deliver a keynote speech, the co-head of Primary Market, at the London Stock Exchange, Mr. Ibukun Adebayo will also speak on key issues at the event.




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