Forex news in Kenya
Forex news in Kenya is a vital part of the Kenyan economy, and it can be confusing at times. For one thing, the shilling has continued to fall against the USD. The shilling’s downward trend in recent weeks is concerning. However, there are a number of positive developments. The new government plans to reduce fuel subsidies and focus on increasing food production. In addition, award-winning journalist Terence Zimwara has written extensively on economic issues in Africa and digital currencies.
Online forex trading is legal in Kenya
Online forex trading in Kenya is legal as long as you have a license and follow the rules set by the CMA. This regulatory body is tasked with protecting investors’ funds and ensuring the integrity of the market. It also ensures that online forex brokers are transparent and easy to use. The CMA’s regulations also require brokers to keep client funds in a segregated account with a local bank licensed under the Banking Act. This means that your money is held in Kenya and is easily accessible.
Kenya has a relatively small number of local forex brokers. This is why it is important to find one that matches your trading requirements and makes the minimum deposit. It is also essential to educate yourself about the trading risks before engaging in live trading. Some forex brokers allow traders to deposit as little as $1 while others require up to $1000 to open an account.
The economy of Kenya is doing quite well, and the new regulations have helped create confidence in the trading environment. The country is currently the third largest forex trading market in Africa, behind only Nigeria and South Africa. As the country’s middle class continues to grow, it is likely that forex trading will become more popular. Currently, there are around 90,000 Kenyans participating in forex trading and more are joining on every day.
Kenya’s regulatory body, the Capital Markets Authority, oversees the online forex business in the country. This authority is responsible for protecting consumers and traders from fraudulent traders. However, it is important to remember that the online forex brokers in Kenya should be trustworthy and provide security for your assets. It is also important to consider your needs in forex trading and choose a broker that suits them.
The shilling continued its downward trend against the USD in recent weeks
The shilling has continued its decline against the USD and has fallen to fresh record lows. The strong dollar and limited domestic supply have contributed to the weakening. As of 14 December, the shilling was trading at 112.9 per USD, down 0.9% from the prior month. It is down 3.3% from the same day last year.
There is a high supply of dollars in Uganda and Congo, which is weighing on the shilling. In addition, the government’s budget speech has caused more uncertainty for businessmen, and as a result, speculators have cut down on their transactions.
The weakening of the Shilling may benefit Kenya’s economy by lowering import costs, while making exports more competitive and adding to export earnings. However, the high inflation rate has eaten into the benefits of a weaker currency. This has created additional pressure on the Shilling, as investors shift money to countries with higher inflation.
While the dollar continues to be the world’s dominant currency, many investors still choose to buy it because of its relative safety. The dollar has recently risen against a basket of major currencies, and has reached a 20-year high against other currencies. Moreover, the shilling is easily convertible at any currency exchange in the country.
Foreign regulators have proposed to regulate the industry
The Capital Markets Authority (CMA) regulates all financial activities in Kenya, including Forex. As a result, all Forex brokers must be licensed and registered with the CMA. Prior to this regulation, the Forex industry in Kenya was unregulated and many Kenyans were trading with unregulated brokers. In response, the government authorized the CMA to regulate the industry in 2016. The CMA’s regulation aims to make the Forex market transparent and protect investors’ funds.
The new regulation also requires forex firms to be incorporated as companies limited by shares, with a minimum capital of Sh50 million. This capital must be maintained at all times, and must be at least five per cent of the company’s total liabilities. In addition, the regulator requires that at least 80 per cent of the company’s capital be in cash. The new regulations also require licensees to hire a chief executive with five years’ experience in the forex industry.
The new regulations have helped many companies in the forex industry in Kenya. The increased competition has led to a better service and an improved reputation among consumers. The regulated forex brokers in Kenya have become more popular, with more potential traders looking at the Forex and CFD markets in Kenya. These brokers have also gained more trust in Kenyan markets, mainly because they are registered with the CMA and have local offices.
The new regulations will prevent the use of unsafe practices in the forex industry. The new rules also require Kenyan banks to match their foreign currency assets with their liabilities, and to ensure that the difference is not greater than 10% of their core capital.
