Insider Business Forex industry hit the least by coronavirus  

Forex industry hit the least by coronavirus  

The rapid development over recent years of the forex industry in Cyprus appears to be beneficial for the island’s whole economy since the coronavirus epidemic little affects its operations, Phileleftheros reports.

Forex companies now constitute a large segment of the Cypriot capital market, with data from the Cyprus Securities and Exchange Commission showing that a total of 241 Cyprus Investment Services Firms were active in February. Of these, 149 were in the forex market and 92 trading in traditional investment products.

Foreign Exchange (Forex) refers to the over-the-counter foreign exchange market in which the foreign currencies of the world are traded. It is considered the largest and most liquid market in the world.

Coronavirus does not seem to affect forex companies, at least when compared to others, with insiders explaining that this endurance is because of the sector’s nature. Despite the crisis, transactions are carried out online and in foreign currencies so operation is normal, one also said.

However, with the whole business spectrum affected by the spreading epidemic the purchasing power worldwide shrinks and the number of transactions also decline.

Nonetheless, the Ministry of Finance is now betting on these companies to maintain a flow of tax revenue at a time when most sectors are flagging. At the same time, the sector’s companies are among the most important buyers of real estate or tenants of top-rentals in coastal Limassol.

In addition, they offer very good salaries to employees, something that benefits consumption which has also been affected in recent weeks. And forex companies also generate work for other sectors such as law and accounting firms.

However, the Securities Commission closely monitors these companies so as to ensure the effective protection of investors and the healthy development of the capital market.

At a time of large fluctuations such as the prevailing one, when the psychology of investors is also affected, bie problems could arise – especially with non-professional investors.

By Demetra Landou

Read more:

Changes in Cyprus’ Investment Services Sector

Top Stories

181 new cases of COVID-19 on Tuesday

The Health Ministry announced 181 new COVID-19 cases on 27 October, out of 3,589 laboratory tests, taking confirmed infections to 3,817. The break-down of new...

President Anastasiades and Turkish Cypriot leader to hold first informal meeting next Tuesday

President of the Republic of Cyprus Nicos Anastasiades and Turkish Cypriot leader Ersin Tatar will hold their first informal meeting on the 3rd of...

FM: Turkey’s actions not conducive to Guterres’ efforts over Cyprus

Cyprus’ Foreign Minister Nikos Christodoulides said on Tuesday that Turkey’s illegal actions undermine peace and stability in the region and are not conducive to...

State Health Services Organization confirms hiring of nurses

The State Health Services Organization confirmed today to the nurses’ trade unions that the decision for the hiring of new nurses to man Hospitals...

200,000 rapid COVID-19 tests ordered

The Health Ministry announced that 200,000 antigen rapid COVID-19 tests have been ordered within the framework of the measures taken to manage the new...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...