Travelex's Hume on current forex trends in South Africa

Travelex, a global leader in foreign exchange services, has been making significant strides in the African market, particularly in South Africa. With a focus on wholesale foreign currency requirements for travelers and businesses, Travelex has been able to meet the steady and strong demand for efficient currency solutions. Cameron Hume, Travelex's Global Wholesale Director, recently discussed the current landscape of the forex market in Africa and the factors driving demand for foreign currency. Hume highlighted three key factors: tourism, cross-border trade, and economic factors. With the resurgence of tourism post-pandemic and the growth in cross-border trade, particularly in US dollars, Travelex has seen an uptick in demand for its services. Moreover, the use of foreign currencies as a hedge against domestic currency depreciation has also contributed to the growth of Travelex's wholesale business across the continent. Despite the rise of innovative players in the financial services sector, such as mobile payment platforms, Travelex has continued to see steady demand for cash transactions. Hume pointed out that the US dollar remains a dominant currency in Travelex's trade volume, representing around 80 percent of their transactions in Africa. Cash, especially in US dollars, continues to play a vital role in international trade and tourism, offering customers a choice in their preferred payment method. Travelex's focus on serving both individuals and corporates in managing their currency requirements has positioned the company as a key player in the forex market. By enabling businesses to hedge currencies and optimize their trading operations, Travelex has become a trusted partner for many importers and exporters across Africa. The company's recent acquisition and expansion in the South African market have also been met with success, with a significant increase in sales volume year to date. One of the notable trends highlighted by Hume was the repatriation of US dollars by banks in Africa. Due to logistical challenges during the lockdown, many banks were unable to return their US dollar holdings, leading to a backlog of currency. Travelex played a crucial role in assisting banks with repatriation efforts, clearing out old banknotes and supplying mint notes to meet the demand. This shift in currency flow has contributed to the overall growth of Travelex's business in the region. In conclusion, Travelex's commitment to serving a diverse range of customers, from central banks to individual travelers, has solidified its position as a leading foreign exchange provider in Africa. With a focus on innovation, customer choice, and strategic partnerships, Travelex continues to drive growth and expansion in the dynamic forex market of Africa.