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A close look at the workings of the modern financial world has led to a chilling revelation: CME Group has launched water futures to go public.
This means that water, like all other commodities like gold, silver, platinum and oil, can now be traded based on its value, information portal “thinkinghumanity.com” reported, cited by dariknews. bg.
Water futures are traded on the Nasdaq, one of the largest and most important stock exchanges in the world. It began trading on the Chicago Board of Trade earlier this week under the code NHQ2O and was valued at $ 486.53 per acre foot (1 acre foot equals 1,233.48 cubic meters).
This raises concerns about the commodification (action or process in which a resource is treated as an ordinary product) of this basic and most important natural resource, the portal commented.
Water is probably the most important good in the world. Clean water is vital for the maintenance of human life, as well as for agriculture and therefore for food production. It is essential for both industry and the world economy.
Thus, control of water by large corporations or speculation on it by financial traders may mean that it is not properly distributed or that it is simply stored and sold to the highest bidder for profit.
For many people, this would create difficulties, as the most valuable commodity will now be distributed to the owners of wealth, as opposed to those who need it most.
One of the reasons investors see water as a lucrative good to invest in is that much of the world is running out of fresh water because the demand for water exceeds the supply.
Furthermore, global warming is reducing the supply of fresh water around the world. Therefore, the price can be expected to increase in the long term.
NQH20 futures will be an innovative tool for a more transparent water supply for agricultural, commercial and municipal consumers, and price announcements and risk transfer can help more effectively match supply and demand for this resource. vital.
Speaking to Bloomberg, financial analyst Dean Dray said that “climate change, drought, population growth and pollution are likely to make water scarcity and price problems a hot topic in the coming years.” .
Approximately 2 billion people around the world live without access to clean water, and it is estimated that due to global warming, around two-thirds of the world’s population will soon be living in countries where access to fresh water is no longer guaranteed.
Many geopolitical analysts also warn that as fresh water becomes increasingly scarce, it could cause financial disasters and even lead to wars between countries seeking to control the water supply.
According to CME Group, providing a clear reference price will allow governments and corporations to better plan the purchase and distribution of water.
U.S
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