The Agricultural Product Derivatives market in Bhutan is experiencing a shift in customer preferences towards more diversified investment options in recent years.
Customer preferences: Investors in Bhutan are increasingly looking for alternative investment opportunities to traditional financial instruments. This shift is driven by a growing interest in diversifying portfolios and managing risks more effectively. Agricultural product derivatives offer a unique way for investors to hedge against price fluctuations in the market, providing a valuable tool for risk management.
Trends in the market: In Bhutan, the Agricultural Product Derivatives market is witnessing a steady growth in trading volumes and market participation. This trend can be attributed to the increasing awareness and understanding of derivatives among investors, as well as advancements in technology that have made trading more accessible. Additionally, the government's efforts to promote the development of financial markets in the country have also contributed to the expansion of the Agricultural Product Derivatives market.
Local special circumstances: Bhutan's economy is largely agrarian, with agriculture playing a vital role in the country's overall economic development. As a result, agricultural product derivatives hold significant importance for both farmers and investors in Bhutan. By providing a platform for price discovery and risk management, these derivatives help stakeholders in the agricultural sector mitigate the impact of price volatility and uncertainties in the market.
Underlying macroeconomic factors: The growth of the Agricultural Product Derivatives market in Bhutan is also influenced by broader macroeconomic factors such as government policies, international trade dynamics, and global market trends. As the country continues to focus on economic diversification and sustainable development, the demand for agricultural product derivatives is expected to rise. Additionally, the integration of Bhutan's financial markets with regional and global exchanges is likely to further drive the expansion of the Agricultural Product Derivatives market in the country.
Data coverage:
Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.Modeling approach / Market size:
Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.Additional Notes:
The market is updated twice per year in case market dynamics change.
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