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Zambia Exchange To Start Trading Currency Futures In November
28/10/2013
LUSAKA (Reuters) - Zambia's Bond and Derivatives Exchange plans to start trading currency futures next week after it appointed two banks to handle the clearing and trading, its deputy chief executive said on Monday.
The exchange will trade in currency futures to hedge against foreign exchange risk after the government introduced a law reinforcing the use of the local kwacha currency, Peter Sitamulaho told Reuters.
Sitamulaho said Zambia's Zanaco Bank had agreed to be the clearing bank and Bank ABC would handle the trading for the exchange.
"We have set 5th November as the tentative date to start trading but that will depend on how quickly our colleagues can conclude their internal support systems," he said.
Sitamulaho said Zanaco Bank was scheduled to hold a meeting to review its preparedness as the clearing bank on Tuesday.
"Finance Bank has also expressed interest to come on board but they are still a little bit behind," Sitamulaho said.
Last year, Zambia introduced a law requiring mining companies and other exporters to write their contracts in the kwacha currency, exposing exporters and importers in Africa's top copper producer to foreign exchange risk.
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