FRIDAY 11.00AM
The start of trade in rand-dollar futures on the Chicago Mercantile Exchange next week will help stabilise the local currency, Finance Minister Trevor Manuel said yesterday.
“Instruments like the futures contract are likely to dampen the volatility we lived through last year because they put instruments of choice on the market place,” Manuel said at the exchange’s press conference called to mark the launch of trade in the futures next Wednesday.
Exchange president and CEO Robert Kilcollin said the exchange will benefit SA by offering investors further risk-management options, thus encouraging investment. “The rand already trades more than $7-billion daily in the spot and forward markets. CME rand futures and options will provide … risk management in a currency that has seen price fluctutations of more than 30% in the past year,” said Kilcollin.