South Africa: JSE launches new range of African currency futures

Oct 08, 2014

The Johannesburg Stock Exchange (JSE) launched on Monday (October 6th) the first currency futures, which allows investors to protect themselves against currency fluctuations in the region.

The Johannesburg Stock Exchange (JSE) launched on Monday (October 6th) the first currency futures, which allows investors to protect themselves against currency fluctuations in the region.

The service - which is expected to strengthen the financial integration of regional markets - tracks the exchange rate between the South African Rand and the Zambian Kwacha, Kenyan Shilling and Nigerian Naira.


Market participants can trade on the JSE through trading synthetic cross currencies, APA reports.

"The JSE is very excited about this new groundbreaking initiative as we have been working on this strategy for two years. With Africa being a global investment destination it makes sense for the JSE as a major exchange player in Africa to be involved in providing appropriate products to mitigate currency risk and exposure when dealing in Africa," said JSE's general manager for capital markets Warren Geers.

The latest trade statistics from the South African Revenue Service (SARS) show trade flow between South Africa and Nigeria amounted to R34.4 billion (€2.43 billion) between January and July this year.


In the same period, trade between South Africa and Kenya amounted to R4.6 billion while trade between South Africa and Zambia reached R18 billion.