By JAMES MUYANWA –

THOMSON Reuters has won a process to provide currency benchmarks for Zambia and two other African countries.
Local observers say the move is a step in the right direction in the enhancement of transparency and accuracy in the objective collection of data from the currency market and making it public.
Apart from Zambia, the other two countries in the pack which has been described as a trio of Africa’s most vibrant and dynamic economies are Kenya and Ghana.
International media reports that starting this week, Thomson Reuters Benchmark Services will operate currency benchmarks for the Kenyan shilling, Ghanaian cedi and Zambian Kwacha.
This begins a process which will see the benchmarks move from a manual telephone-based system to an automated arrangement.
Commenting on the development a foreign exchange analyst based in Lusaka, who did not want to be named, said the move would help in instilling more efficiency in the handling of the data on foreign exchange.
Another observer, Peter Sitamulaho said separately that in the past market players would physically contact the Bank of Zambia and provide report of the daily currency movements but that would now change.
Mr Sitamulaho who is Bond and Derivatives Exchange Zambia deputy chief executive officer said the move was a positive step especially that currency fixings have come under major scrutiny globally.
“…this is a massive step in the right direction with regards to transparency and accurate objective collection of data from the currency market and making it publicly available!
“In the past market players would contact the central bank and provide report of the daily currency movements. BOZ would then consolidate the data and provide (say) average rates for the day. But now this is automated .ie as soon as you are trading the information is updating,” he said.
Thomson Reuters Africa head – financial and risk, Sneha Shah has been quoted as saying that:
“Kenya is the major trading hub for east Africa, Ghana is growing in the west and Zambia is a country to watch in the south with exciting developments in its commodities and derivatives markets.”
EMTA Incorporated and its African Currency FX Working Group, selected Thomson Reuters to provide sport to the market for the three benchmarks.
There now follows a three stage transition process to reduce the reliance on manual reporting.
The first stage is the transition to Thomson Reuters, followed by automated collection of data from 10 most active contributors and finally the launch of an open consultation on the possible use of transaction data in a subsequent phase.