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Emerging market currencies now account for a quarter of global forex deals. China makes biggest gains over three years

Emerging market currencies now account for a quarter of global forex deals. China makes biggest gains over three years

As the world’s dominant currency, the US dollar maintained its leading role in forex trading last year. The US dollar was one of the currencies in 88% of all forex trades during 2019 according to data collected by LearnBonds.com. Surprisingly, emerging market currencies, collectively accounted for 25% of all forex trades in 2019.

The turnover in the euro, the second most traded currency in the world, slightly increased to 32% as captured in the 2019 Triennial Survey of Forex Exchange.

During 2019, currencies of emerging market economies boosted their share, hitting 25% of total forex trading volume. The figure represents a 4% increase over the three-year survey period, building on a trend seen in previous surveys.

The Japanese yen dropped five percentage points in 2019 to 17% of global forex turnover compared to 2016, but remained the third most traded currency in the world. This fall was primarily caused by a slide in the importance of Japanese yen/US dollar trading amid lower volatility. However, transactions in other leading yen cross trading such as the Australian dollar/yen and the euro/yen increased over the last three years.

Other heavily traded currencies remained unchanged to their 2016 shares. The British pound was the fifth most traded currency in 2019 with a 13% share in global forex turnover, followed by the Australian dollar, Canadian dollar and Swiss franc.

The most traded emerging market currency, the Chinese renminbi remained in the same position as the ninth most traded currency but the total turnover in the Hong Kong dollar nearly doubled over three years. The Indian rupee, Korean won and Indonesian rupiah also moved higher in the global ranking.

US dollar/euro trades account for a quarter of total forex turnover:

The 2019 statistics indicate that trading the US dollar/euro currency pair made 24% or nearly a quarter of total forex volume over the last year.

US dollar/Japanese yen trading dropped by 4.6% over three years to a 13.2% share of global turnover. US dollar/sterling trades remained at a stable level over three years, again adding around 9% to forex turnover in 2019.

The US dollar/emerging market currency pairing racked up the most significant increase since 2016, jumping to a 20.2% share of overall forex trading volume.

The 2019 data shows further that forex trading is still cluster around a few international hubs. The domestic currencies of the US, the UK, Hong Kong, Singapore, and Japan were involved in nearly 80% of all foreign exchange trading in 2019.

The biggest gain was in China which posted a massive 87% jump in forex trading from 2016 to 2019.


 

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.