On 18th March 2020, the President of Uganda H.E Yoweri Museveni declared the official closure of all educational institutions; schools and Universities. To me, this was moment of relief say an act of God since I had spent my entire resourceful time in election campaigns at college and this came at the cost of my lecture time. To cut it short, the semester had ended with a gross income of $50 (shs. 186,000). This was yet another thing to add to my daily gratitude chart. I had attained financial freedom and no longer was I going to be an economic misfit ever again. Yes, I thought.
Today, all shops, transportation means, restaurants and other forms of businesses have been locked down after 3 local people tested positive with COVID-19. The number has so far risen to 18 people with no death case yet. The most affected people are those living hand to mouth, the taxi drivers who depend on transport to feed their families. According to World Data Altas, Uganda’s total dependency ratio (0-14 and 65+ per 15-64) was at level of 94 ratios in 2019, down from 95.6 ratio previous year, this is a change of 1.62% .
Everyone has opted to digitization but does it favor the economic misfit?
When you read these articles; impact of Covid-19 and contact-less economy, you will understand that Uganda is not yet close enough to that. Most of the fast growing economies have moved to embrace cashless transactions and also use of digital currencies. The other advantage is the broadband access and its affordability. In Uganda, data bundles are too costly for an average Ugandan to prioritize over the basic needs such as food and water.
It is estimated that 90 percent of people who live in the Least Developed Countries (categorized by U.N.) are without internet access. In many developing countries, a large portion of the population lives in rural areas, where the cost for internet providers to provide access has not always outweighed the potential benefits to the provider. According to the UN report, about Sustainable Development Goals (SDGs), stresses that access to information and communication technology (ICT), particularly broadband Internet, has the potential to serve as a major accelerator of development. The importance of ICT connectivity is specifically recognized in the SDGs.
With technological advancement and Internet of things (IOT), market creation innovations must be created such as Jumia and SafeBoda. Such tech-startups create more employment opportunities to the local people as well as revenue to the economy. However, these are very few examples to make any impact on our economy.
To combat this, we need to understand financial markets that run global economies.
Imagine America, the world’s strongest economy in the world, The US reported a leap to 3.283 million jobless claims in the wake of the corona virus crisis in a period of two weeks and it may increase as lock-downs spread. And according to the Wall street Journal, House leaders were scrambling to bring back enough legislators to form a quorum to pass a $2 trillion economic rescue packages as unemployment benefits to the affected people. Well, my motherland, how much does it have in its gold reserves to protect the Ugandan shilling from depreciation over the dollar. Remember on 18th March 2020, I had $50 worth shs.186,000 but today (March 27, 2020) that same amount is worth shs. 193,000.
Ever wondered why all soft currencies are based the value of dollar! The greenback (US Dollar) is also known a soft haven asset which tend to retain or increase in value during times of uncertainty and market instability. Safe havens tend not to have a correlation with the performance of stocks and bonds, making them ideal for trading in the event of market crashes. Other safe haven currencies include; Euro, Japanese Yen, and Swiss Franc.
What qualifies as a safe-haven currency?
The key indicators are; strong liquidity, as well as to the wider economic climate in its issuing country – such as a stable political system, economic growth and stable finances. For example; the Yen is driven by factors such as Japan’s strong current account surplus, positioning the country as the world’s largest creditor nation. Additionally, the Yen is a popular carry trade, meaning investors often borrow Yen from Japan, where interest rates are low, in order to buy currency in a country where interest rates are higher. This can push up the price of Yen during financial turmoil, as international speculators choose to unwind risky positions and pay back Yen loans.
Forex markets are one of the key factors that attributed to the economic stability of most developed countries. Foreign exchange market is a decentralized market for the trading of currencies. Approximately $5 trillion worth of Forex transactions take place daily, which is an average of $220 billion per hour. The market is largely made up of institutions, corporations, governments and currency speculators. Speculation makes up roughly 90% of trading volume and a large majority of this is concentrated on the US dollar, euro and yen.
Learn and then remove L
Have you been ignoring the person who ever said they earn online? This quarantine should be the time you educate yourself about Forex trading. In the current generation of millennial, you have no excuse for not learning anything. You have 23 days of quarantine, no work, no school, no travelling and no movements. All you need is data and a phone or laptop to start learning.
With this current global pandemic, most people have actualized the relevance of digital tools. According to the Inc Magazine article, Zoom app has become the most important app of today having a revenue of $44 billion from $22 Billion. Before you procrastinate on this, the International Labour Organization estimates 25 million will be lost worldwide as a result of COVID-19 pushing millions of people into unemployment, underemployment and working poverty, and proposes measures for a decisive, coordinated and immediate response.
I learnt about Forex trading from a Ted talk and I was lucky to have meet a cousin at campus (Forex guru, millionaire) who guided me through. I hadn’t gotten enough time to participate all I had learnt. So I got $8 from my $50 to try my live account and I was amazed at the outcomes. The reason why I would love for any Ugandan to learn is that any dollar earned equals shs. 3000 which is equivalent to lunch without rent expenses or transport. The markets are open 24 hours and you can decide what time works for you. I front personal success over national success because poverty is personal. You don’t need to know all the technicalities involved as artificial intelligence has simplified everything. I can’t express myself anymore about my joy upon learning this. If you are interested, we can still chat more firstname.lastname@example.org