Market Experts who are known for monitoring the Forex (FX) markets and providing signals upon identifying trading opportunities have disclosed that Ghana is yet to tap into the US$7.5 billion global forex trading market.
The forex market is an electronic network for currency trading made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors. Profit or loss results from the difference in price at which the trader buys and sells a currency pair.
While FX trading was previously restricted to governments and financial institutions, individuals can now directly buy and sell currencies on forex market.
Dr. Myles Christian Hagan, the head of Electronic Banking at Universal Merchant Bank (UMB) and a market expert, divulged that forex market has the potential to cushion and absorb a significant amount of shock, making it suitable for the economy in dire moments.
According to Dr. Hagan, FX market is growing in leaps and bounds, hence, Ghana cannot continue to ignore FX trading, especially as the economy faces real crises.
“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.
“To benefit from FX trading activities, it is important for the government to put in place infrastructure and regulations for citizens to trade. Ghanaians into FX trading are using various foreign platforms, denying the country the full benefits of electronic currency trading.”
Dr. Myles Christian Hagan
Calling on the government, Dr. Hagan recommended the creation of an enabling environment which he believes can be realized through public-private partnerships (PPPs).
“The country must create the necessary infrastructure and provide a proper regulatory framework that will make sure they benefit and reduce the risk for the youth that they are encouraging to equip themselves with skills in the field.”
Dr. Myles Christian Hagan
President Of WIF Encourages The Participation Of Youth In FX
Adding up to the voice of Dr. Hagan, Mrs. Gifty Annor Sika, the president of Women in Forex (WIF) Ghana, confirmed 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.”
Mrs. Gifty Annor Sika
Ghana has the potential to achieve massively from the global forex trading market, which can deliver the youth from the cry of unemployment and boost the country’s GDP. However, to do so, the country must strategize measures, infrastructure and regulations needed to motivate individuals to participate.
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