Currency Fears Are Delaying Kenya's Plan to Introduce Derivatives
- Regulator studying potential impact on nation’s shilling
- Nairobi exchange planning currency, equity derivates
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Kenya’s central bank blocked plans to introduce foreign-exchange derivatives in the country as it determines how the instruments may affect the nation’s currency, according to the Nairobi Securities Exchange.
The regulator has also yet to approve the use of banks as clearing members for derivatives trades, delaying the introduction of single-stock and equity-index futures, Geoffrey Odundo, the bourse’s chief executive officer, said in an emailed response to questions. The central bank is conducting a viability study on currency futures with the help of the International Monetary Fund, he said.