Experts call for infrastructure and regulations for Ghanaians to tap into $7.5bn forex market
Ghana has yet to tap into the US$7.5 billion global forex trading market, according to experts. 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 bought and sold 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 watchers say that the FX market is growing in leaps and bounds, and Ghana cannot continue to ignore FX trading, especially as the economy faces real crises. The head of Electronic Banking at Universal Merchant Bank (UMB) and a forex expert, Dr. Myles Christian Hagan, believes that the market 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 digitalisation is the new normal. Forex trading is one of the benefits that we can derive as a society from widespread digitalisation,” said Dr. Myles.
However, to benefit from FX trading activities, Dr. Myles says that 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 also recommended the creation of an enabling environment, which he believes can be realized through public-private partnerships (PPPs). He emphasizes that 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.
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.
Ghana has the potential to benefit significantly from the global forex trading market, which can deliver the youth from unemployment and boost the country’s GDP. However, to do so, the country must put in place infrastructure and regulations for citizens to trade, create an enabling environment, and reduce the risk for the youth. Public-private partnerships (PPPs) may be the key to realizing these goals.
