Naira recovers after CBN guidelines on BDCs

The Naira appreciated in the parallel market, trading at 508 to the dollar compared to 525 at the close of last week. Market panic after the CBN issued guidelines banning the sale of dollars to Bureau de Change’s has reversed, with most speculators cutting their negative positions, reversing losses on the currency. The restrictions are […]

Calls for comprehensive Africa COVID support

The International Monetary Fund and World Bank should lead G7 and G20 nations towards a comprehensive financial assistance package for Africa to help tackle the third wave of the coronavirus pandemic, according to the Atlantic Council. While African countries are set to benefit from the IMF’s $650 billion special drawing rights programme, wealthy nations need […]

COVID recovery requires joined up global support

Africa and Europe called for greater cooperation to tackle the economic fallout from the coronavirus pandemic at the Africa Roundtable forum this week in Berlin. German President Frank-Walter Steinmeier called on Western nations to make a more significant contribution towards the global vaccination programme, while Senegalese President Macky Sall said easier access to loans to […]

African rate-setters steadfast in face of a cut

A majority of African central banks have kept their interest rates unchanged since the start of this year as the economic growth outlook is countered by inflation fears. Only a few countries, including Mozambique, Zambia and Zimbabwe, have tightened rates this year as they attempt to curb rising inflation. Even fewer have cut rates, with […]

Eco currency debate rumbles on as Naira devalues

West African states debate new Eco currency The West African Eco currency symposium took place in the Togolese capital Lomé this week to discuss issues around the transition away from the CFA Franc to the new currency. Topics on the agenda included monetary policy integration for countries in the Economic Community of West African States […]

African leaders call for expanded IMF support

African presidents from countries including the Democratic Republic of Congo and Senegal called for the IMF to triple the amount of money available to Africa under the fund’s Special Drawing Right reserves to $100 billion to support countries hard hit by the coronavirus pandemic. The leaders were attending the African Economies Funding Summit in Paris […]

CFA Franc reform edges closer

CFA Franc reform edges closer The introduction of West Africa’s common currency, the Eco, potentially took a step closer following press reports that France is preparing to return €5bn of foreign exchange reserves to the Banque Centrale des Etats de l’Afrique de l’Ouest as part of a guarantee agreement on the reform of the CFA […]

Eco takes a step closer to reality

Rising oil anchors Naira The Naira maintained a stable footing in the parallel market at 482.5 per dollar levels amid a slowdown in speculative purchases of the greenback. The currency depreciated slightly at the Importers & Exporters window to N411 from N410 at the end of last week. The outlook remains dependent on Covid-19 along […]

African recovery lags due to vaccine deficit

Africa’s recovery lagging world amid vaccine deficit  After the worst economic downturn on record, with an estimated 1.9% contraction in 2020, sub-Saharan Africa is set to lag in the recovery this year, with a growth of 3.4% vs. 6% forecast for the rest of the world, according to the IMF’s regional economic outlook. That’s in […]

Eco currency gets impetus from UEMOA appointment

Eco currency gets impetus from UEMOA appointment The West African Economic and Monetary Union (UEMOA) signalled strong backing to economic reforms needed for the Eco currency to work by appointing the economist Kako Nubukpo to its commission last week. For several years, Togo’s former minister of foresight has been engaged in an anti-CFA Franc crusade. Togolese President Faure Gnassingbé pushed for him to be […]

More Gains for Rand and Shilling at Multi-Month Highs

Rand near 14-month high has further to rally The rand strengthened this week to 14.4100, nearing a 14-month high, from 14.5937 at the end of last week this week. The currency is rallying amid dollar weakness on resurgent confidence that the Fed is unlikely to tighten monetary policy anytime soon. We project further gains for […]

Redouble effort for post-COVID recovery in Africa

Redouble effort for post-COVID recovery in Africa  Africa needs around $12bn to procure and distribute sufficient numbers of COVID-19 vaccines to achieve adequate protection against the virus, the World Bank and IMF said in a report at their virtual Spring meetings this week. The sum is about the same as the total official debt service payments deferred by 45 […]