The addition of Chinese and Russian currencies by many electronic trading firms has been most certainly a popular activity over recent months, however eToro’s addition yesterday of the two pairs was accompanied by a somewhat unorthodox statement from the company.
Whilst many companies cite the increased popularity and demand for liquidity in the light of China’s increasingly free-market-friendly offshore yuan and Russia’s rapid development toward gaining prominence on the world stage in terms of financial infrastructure, trading venues and regulatory oversight, eToro has explained its rationale in a fashion which takes a detour from the norm.
The message reads as follows: “We wanted to let you know that, we will soon be adding a few of the most volatile instruments in the currencies market to our offering, starting with the Russian Ruble and the Chinese Yuan. Both new currencies will be available for trading on Monday, October 20th.”
“The Russian and Chinese currencies are considered to be two of the world’s most volatile currencies, and for those of you who like to follow global changes, they’re a dream come true. Not only are these currencies just about as volatile as it gets, but the governments that are behind these currencies are taking an active part in changing the world as we know it. China is becoming one of the economically strongest nations on Earth, while Russia is rising to prominence in the financial sector and remains one of the world’s most powerful resource holders. For those of you who are not too familiar with these currencies, take a look at how both performed in the last 6 months alone.”
The company takes the geopolitical aspect relating to potential trading revenue from the newly added currency pairs, with the unknown outcome of the differing political dynamics in the region having led to high volatility of the ruble over recent months, alongside China’s interest in supporting Russian business in the financial markets economy. On this basis, eToro concludes its announcement by posing the question “Let’s not forget that China doesn’t even allow Google to operate on its soil. So, will the East conquer the West? How do you think this will end?”
Nadav Avidan, Head of Communications at eToro spoke to LeapRate today regarding the firm’s methodology behind its presentation “Our strategy is to reach people in a social way. eToro takes this angle in order to stand itself out as a different service from other mainstream firms in the retail sector. Traders engage with eachother on social networks. Whenever we get a news event, we combine it with the financial product that we offer. We want to be able to stand ourselves out as a company which combines global events and provides relevent news to traders who can use this for their benefit.””
Click here to read the full detail from eToro.