Indian company (MCX) launches its 10th electronic exchange - in Africa

India's largest commodity bourse the Multi Commodity Exchange (MCX) is spreading its wings to Africa. It has set up a wholly owned subsidiary--MCX Africa--to take the futures trading in commodities to 53 African countries.

Last week, MCX founder Jignesh Shah and his team were in Botswana to launch a licence for MCX Africa to be domiciled under the Botswana International Financial Services Centre (IFSC) in Gaborone .

Executive Director of MCX Africa Chris Goromonzi said time has arrived for Africa to determine its own destiny, saying there is no reason why agriculture and resource prices should be determined outside the continent.

Officials said MCX Africa envisages a level playing field for African stakeholders in global commodity markets, saying they are bringing to the continent modern financial instruments only seen in other regions of the world. (via MCX spreads global wings; sets up MCX Africa).

Earlier,The Hindu Businessline reported that

FTIL-MCX previously promoted Dubai Gold and Commodity Exchange (DGCX) in joint venture with Dubai Metals and Commodities Centre. DGCX, which began trading on bullion in November 22, 2005, had already spread its portfolio to currency (Euro, Pound and Yen) and is now planning to enter the energy segment with contracts on fuel oil (used in ships) and gasoline. It has also planned the launch of contracts on steel.

It is these kinds of exchanges and trading platforms which India has now become an expert in. FTIL is leading this Indian charge into the international arena - this being the 10th exchange FTIL is associated with.

The West is obviously worried that they could soon lose their dominant status in terms of setting commercial terms of trade. That power may soon pass on to the producers.

Couple that with the coming end of dollar hegemony, the doubtful start of the Euro, and what we have is a situation, ideal for the developing world to launch a third global reserve currency, which will benefit every country - without any one country being an undue beneficiary.