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Kenyan Exchange Plans To Launch Currency Futures

Kenyan Exchange Plans To Launch Currency Futures

By Lola Okulo | From The Star via AllAfrica

Investors will soon be able to shield themselves against forex market volatility following an announcement by Nairobi Securities Exchange that it will launch currency futures this year.

NSE’s product development manager Terry Adembesa said yesterday that plans are at an advanced stage to launch currency and index futures before the end of June.

“We already have approvals from the regulator,” Adembesa told a financial analysts forum in Nairobi.

If the plan succeeds as per schedule, Kenya will be the second country to launch a derivatives market after South Africa. Last October, the Johannesburg Stock Exchange launched futures contracts for the Kenya shilling, Zambian kwacha and Nigeria’s Naira.

The NSE has spent about $750,000 (Sh68.6 million) to prepare systems and the market for derivatives trading locally.

“The launch of the derivatives market will mean investors will be able to hedge out risks prevalent with the underlying security,” added Adembesa.

Read more at AllAfrica