Over this 5 day series 2FX Treasury will be sharing some of the recurring characteristics that lead to higher financial risk within Emerging Markets – in particular Africa and the Middle East. Today’s post will be an overview of what’s to come, and an introduction to Menas Associates partner company in financial solutions and treasury management.

Emerging Markets and Developing Markets

Within the financial markets, there are a variety of characteristics that differentiate Emerging Markets (EM) from Developing Markets (DM). It is these contrasting features that make EM ‘unique’ but often harder to navigate – ultimately leading to higher (financial) risk. This 5 day series will shed light on some of the most common economic factors impacting businesses working in the Middle East and Africa, and thus the financial risks that are faced.

The need for an EM strategy

Over the coming days 2FX Treasury will shall share some of the most common characteristics that they see when working in Emerging Markets. Of course the specifics will vary from country to country – and the devil is always in the detail. Nevertheless, from a commercial perspective they are very interesting countries to work in. 2FX always advise that you should only enter into an EM country with a strong and clear understanding of any potential political and financial risks that could occur, whilst having the necessary strategies in place in case they do, in order to be successful in the market.

If there are any questions you already have, or that come to light across the week-long series, then do not hesitate to contact us or 2FX Treasury for advice and assistance.

What to expect over the next 4 days:

Day 2 (tomorrow)      -   Local market structure
Day 3 (Monday)          -   Liquidity
Day 4 (Tuesday)          -   Exchange rate setting
Day 5 (Wednesday)    -   Investor protection policies

Who are 2FX Treasury?

Specialists in international banking and payments, co-founders Kees Lakerveld and René Schilder are able to advise businesses on how to optimise payments and trade finance to/from Emerging Markets. They work in partnership with Menas Associates to provide a one-stop solution for clients facing political and financial risks in countries such as Nigeria, Iran and Egypt.