Naira Breaks Record Low of 700 As Trade Growth Slows

Elections upheld in Kenya and Angola steady FX Disputed election outcomes in Kenya and Angola were dismissed by each country’s Supreme Court this week as the results of August’s presidential elections were upheld. William Ruto was officially confirmed as the fifth President of Kenya, and Joao Lourenco was sworn in for a second term in […]

Pressure on record-low Naira to continue as Cedi weakens further

Angola earns rating uplift as economy poised to end five years of contraction Angola this week saw Moody’s raise its credit rating one level to B3 from Caa1, six places below investment grade, supported by the country’s improved fiscal position and rising oil prices. It was the first time Moody’s has upgraded Angola since first […]

Record-low Naira poised for new depths; Cedi reprieve unlikely to last

Chad debt relief plan hinges on private creditor talks The IMF this week called on private creditors to step up debt talks with Chad as part of a restructuring process that will unlock funding the country urgently needs as its economy staggers from the combined shocks of Covid-19, lower oil prices, climate change and terrorist […]

Naira hits record low as Kenya inflation at an 18-month high

Ethiopia seeks to stem surging inflation Ethiopia’s rising inflation has forced the country’s central bank to double the cash reserve ratio requirement for commercial banks to 10% in a bid to reduce liquidity in the market. Inflation in Ethiopia—which has been gripped by civil war since the country’s Prime Minister Abiy Ahmed ordered a military […]

IMF cash to prop up Naira and Kenyan Shilling while Cedi languishes at lowest this year

Wealthy nations urged to reallocate IMF cash injection to poorer economies The IMF’s record $650 billion reserves distribution came into effect earlier this week, with the fund’s managing director Kristalina Georgieva calling on wealthy nations to divert some of their allocations to poorer countries that need greater economic support amid the COVID-19 pandemic, particularly in […]

New Zambian President HH brightens post-default outlook

Zambia’s opposition leader Hakainde Hichilema won the country’s presidential election against incumbent Edgar Lungu, clinching victory by around one million votes. It was the Zambian businessman’s sixth attempt at winning the presidency and comes at a time of increased discontent with the previous regime as the cost of living rises. The Zambian Kwacha had depreciated 21% […]

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 […]