A Forex expert and Fund Manager, Mr Stano Emmanuel has said that the emergence of coronavirus pandemic that affected the whole world did not have much effect on forex market, but brought many people to engage in Forex trading.
Emmanuel, who is the Chief Executive Officer (CEO), DCROCSTYLE Nigeria Limited, a Fund Management firm made this known in an Interview on Sunday in Ilorin.
According to him, COVID-19 expanded the base of players in the market even though many economies were dealt devastating blows.
“Presently, we now have more players in the Forex markets than before. This is because, you know, so many businesses have really gone down.
“Everybody wants to go online, especially when there was a global lockdown.
“So many people want to get trained online to be able to access the financial markets. There are so many more players now than before.
“So in this era of COVID 19, it affects so many companies, it affect us as a company, but that doesn’t mean it affect the Forex Market itself,” the CEO said.
Emmanuel however said the coronavirus pandemic and the global lockdown did not seriously affected Forex market.
“So Covid-19 doesn’t really have much effect on the Forex market like other physical business this is because you have to trade in a stronger currency against the weaker ones. So I will decide to go with the US dollars, instead of trading in in the naira.
“At the end of the day, you will still make money because we are trading in stronger currency even with crisis and a pandemic; you trade a stronger currency against a weaker one,” he added.
Emmanuel explained that the coronavirus pandemic affected companies trading in forex, because companies were like individuals so affected by coronavirus.
“The only way it affected us as company, not the forex market, is that we managed positions.
Though this could be COVID 19 era, the market is extremely volatile and you can see a sharp drop and a sharp increase in price at some point.
“This is because there are news items that come in day in, day out. This news are more than what should come in on a normal day.
“So at the end of the day, there are some certain economic news that comes up that could strengthen the dollar within a twinkling of an eye and could also drop the dollar within same time span.
“We, at our company, have been managing a trading position for the past six months now.
“This position did not allow us to place withdrawal or even pay customers.
“Why? Because if we tamper with our trading transaction at that time, we would have what we call a margin call and it will affect our trade,” he said.
The forex expert however said that because of the trade war between USA and China, most forex traders have shifted to trading in Gold, metals and Silver.
“We trade the stronger currency against the weaker currency in our business.
“Because of the uncertainties coming from the US-China trade war, traders now take gold as insurance, trading in them.
“This explains why gold surged to an all-time high recently”, Emmanuel said.
According to him, “Gold prices wobbled last week, though, dropping 5.72 percent in what was the worst performance over the course of 24 hours since 2013.
“At one point, the USD wiped out all the progress it made over the last three weeks in a span of two days. It was the worst week for gold in five months,” he added.
- Hypertension, Diabetes, Cancers, Others Responsible for 22% of Premature Deaths—WHO
- Breaking…… Kwara Gov. makes fresh appointments
- Croatia knocks out ‘confident’ Brazil from Qatar 2022 Fifa World Cup
- Cashless Policy: CBN meets Senate panel on cash withdrawal limit
- Labour Party sacks publicity secretary, Ogun chapter excos
- NUJ recognises Osoba, Dokpesi, others as icons in media industry
- Newly redesigned Naira now in banks, ready for issuance – Emefiele
- FG develops renewable energy policy to add 30,000MW of electricity
- Buhari congratulates ex-Minister of Defence, Theophilus Danjuma at 85
- Buhari celebrates renowned scholar, Prof. Umaru Shehu at 92