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Rand on a high it hits its 60th anniversary

Rand on a high as it celebrates 60 years In an appropriate run-up to the currency’s 60th anniversary this Sunday, the Rand resumed its rally this week and continues to point in a positive direction amid a sharp decline in the nation’s COVID infection data and a spike in the price of its precious metal exports. On Wednesday, 2,320 […]

New WTO leadership force for Africa trade optimism

Ngozi Okonjo-Iweala, Nigeria’s former finance minister and former Managing Director of the World Bank, looks set to become the next Director-General of the World Trade Organisation, as South Korea’s Yoo Myung-hee pulled out of the race, and US President Joe Biden has thrown his backing behind her. The formal appointment should be made soon, though […]

Egypt’s stable pound offers lesson in loosening FX restrictions

Egypt’s stable pound offers lesson in loosening FX restrictions The Egyptian Pound has been one of the strongest-performing African, and indeed emerging market, currencies since the start of 2019, on the back of improving investor confidence and the government’s economic stimulus package. The currency appreciated by more than 2% from a low of 16.22 against the US dollar since […]

CBN sanction threat easing Naira pressure

CBN sanction threat easing Naira pressure The Naira held steady against the dollar, trading at levels of 478 in the parallel market, as the Central Bank of Nigeria’s Monetary Policy Committee kept its key rate unchanged at 11.5% in a bid to prevent further inflationary pressure and exchange rate weakening. Beyond rates policy, in a […]

Biden presidency rekindles Africa optimism

Biden presidency rekindles Africa optimism  Joe Biden’s inauguration brings renewed optimism for Africa, with key appointments and friendlier policies set to strengthen cooperation between the US and African nations. President Biden’s administration will help drive support from G-20 countries for debt relief, restructuring, and deferment for low-income counties, mostly in Africa, and spur concessional finance […]

Shilling pressured as Ugandans vote; Business as usual means weaker Naira

Business as usual means weaker Naira The Naira dipped against the dollar to 475, the second slide since the start of the year in the unofficial market. Rising dollar demand and a shortfall in FX supply are putting pressure on the local currency as commercial activities returning to normal means businesses sourcing imports to meet […]

Africa FX risk downside amidst 2021 recovery

FX risk skewed to downside amidst 2021 recovery  With the new year’s trading now in full swing, we reiterate our 2021 outlook for moderate depreciation of sub-Saharan currencies—between 5.50% and 9.99% against the dollar—given the lag effects of the economic fallout from COVID-19, softened commodity prices in the global market, and rising risk of debt […]

Post-COVID seeds of innovation are transforming African finance to farming

Beyond the immediate toll on African economies, the pandemic has triggered critical innovations and breakthroughs whose benefits will outlive COVID-19. In a conversation hosted by AZA between leading experts on the continent, we explore a year of rapid development from finance to farming. To watch the webinar, click here or on the image below. Plunging Naira meets […]

Farmers Driving FX Resilience across Africa

How farmers are driving FX resilience IMF projections bunch African tourist hotspots like Mauritius, Seychelles, and Gambia with oil-dependent economies, notably, Nigeria and Angola, as the most vulnerable to prolonged effects of the post-pandemic slowdown. Even with a global recovery, the IMF notes that tourism is unlikely to pick up any time soon. Ceteris paribus, those countries with […]

Rand at post-COVID high set for more gains; Magufuli revitalization leaves Shilling weaker

Rising food prices add pressure for Naira Nigeria’s currency weakened to 475 per dollar as currency traders funneled unmet demand from official sources into the parallel market. Downward pressure was further reinforced as the consumer price index rose from 13.7% to 14.2% amid an uptick in food prices caused by border closures, dollar restrictions, and […]

Biden rally reversal for Rand amid graft charges; Tanzania election leaves Shilling stronger

Biden rally reversal for Rand amid graft charges After soaring to an eight-month high of 15.54 Rand per dollar amid expectations that the Biden presidency and successful vaccine trials bode well for growth and investment, the currency’s rally partially reversed as South African prosecutors issued an arrest warrant for the ruling ANC’s Secretary-General Ace Magashule […]

Post-US election, AfCFTA should focus policymakers’ minds

Post-US election, AfCFTA should focus policymakers’ minds For the past four years, the US’ strategy on Africa has centered on competing against China, the continent’s biggest trading partner. Talks from aid to trade revolved around encouraging the continent to turn away from Beijing and prevent China from taking greater stakes in Africa’s technology, energy and […]

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