Khwezi Trade Provides A Market Analysis for 2022

With the advent and expansion of Covid-19 over the world, the FX market has witnessed rollercoaster highs and lows in the last two years.

Furthermore, the consequences were driving forces in an already turbulent market environment, when ordinary traders clung to safe-haven assets to diversify their portfolios and protect their wealth.

Analysts believe that two primary drivers will drive the FX market in 2022: inflation and (unsurprisingly), Covid-19.

These variables are expected to influence central banks' monetary policy decisions throughout the world.

This is due to the fact that the forex market constantly assesses inflation data in order to predict when central banks will raise or lower interest rates.

This is due to the fact that a currency will appreciate if interest rates are high, whereas a currency will devalue if interest rates are low.

In 2022, Forex Trading and the Law in South Africa

The Financial Sector Conduct Authority, which controls all currency trading in South Africa, is one of the greatest and most renowned market regulators in the world (FSCA).

The FSCA is now rolling out a new license for derivative providers called the Over-The-Counter (OTC) License.

The FSCA hopes that by implementing this new regulatory framework, it will be able to reduce the risk that retail and institutional forex traders in South Africa face, effectively creating a safe environment for market participants and ensuring that South Africa meets G20 requirements for OTC derivatives market regulation.