GCC foreign currency trades reach $ 45 billion


Trading in the greenback, Saudi nationals invested $ 22.5 billion (Dh82.8 billion) or 50 per cent of the total volume traded last month, followed by UAE investors who contributed $ 13.5 billion (Dh49.7 billion) or 30 per cent of the volumes traded in March.

The volume represents a hefty 50 per cent increase over volumes registered over the same period last year.

“Our monthly trading volumes have been increasing as the uncertainty continues in the property and stock markets,” said Saber Daboussi, Chief Executive Officer of ACM Middle East and Asia.

Globally, the Swiss-based online foreign currency trader has been trading volumes in excess of $ 150 billion monthly, a milestone it achieved beginning September last year at the onset of the global financial crisis.

“This just affirms that many investors and high net-worth individuals in this part of the world are still awash with cash, but are still anxious of the stock and property markets,” Daboussi said.

From a trading perspective, ACM’s CEO explained how the current financial crisis is benefiting the investor, and ultimately the foreign currency trading industry.

“Unlike any structured product, the FX spot market contains no hidden risk. Trading on the spot market implies buying or selling the so-called ‘underlying’ asset itself. Thus, any volatility in the market is seen as an opportunity to trade, because in this business our clients make money whether a currency goes up or down,” he said.

This will not be a short-term gain for the foreign currency trading sector, according to Daboussi.

“Investors who have experienced the windfall of foreign currency trading will stay in the market even if the stock and property markets recover, because there is a lot of money to be made in foreign currency trading. On a daily basis, more than $ 2 trillion in foreign currency are traded all over the world so you can just imagine the potential this offers for many investors in this part of the world,” he concluded.


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