Naira Slides Amid Arrests to ‘Sanitise’ FX Market

Hopes for climate reparations fade in COP27 finale Any hopes for East African nations, Ethiopia, Kenya, and Somalia—experiencing their worst droughts in 40 years—to receive meaningful and timely reparations from the industrialised world for climate change appear dashed. In the closing days of the UN’s climate conference COP27, the European Union and African Union announced […]

Away From COP Fanfare, Egypt’s Pound Halves in Value

Climate damage reparations on the COP27 agenda Some European countries, including Austria, Belgium, Denmark, Germany, Ireland and Scotland stepped up to offer ‘loss and damage’ funding for African nations impacted by climate change. While the amounts offered so far are insignificant compared to the billions needed for vulnerable populations to tackle the climate crisis, other […]

Record low as Naira and Kenyan Shilling faces more losses

IMF financing North Africa as Chad loan in doubt Tunisia is set to finalise an agreement with the IMF to access a $1.9bn loan to help ease the impact of food and fuel shortages in the country. Morocco is also considering tapping around $1bn through its credit line with the IMF, scrapping earlier plans to […]

IMF signals Africa’s support

IMF meetings signal Africa’s financial support  The IMF at its annual meetings in Washington this week indicated increased support for economic recovery in Africa. The IMF wants to speed up long-delayed debt restructuring for Zambia and Chad to institute by year-end. In Zambia, a combination of tighter monetary and fiscal policies, and the elimination of […]

Record low as Kenyan Shilling and Egyptian Pound may have further to fall

COP27 host Egypt to call for $100bn climate spending Egypt intends to call on rich nations to fulfill pledges to support poorer countries in their transition to cleaner energy and build resilience to future climate shocks. Egypt intends to “leverage African leaders’ voices to mobilise greater support for a green and resilient recovery in Africa.” […]

Record lows for Naira, Cedi, Kenyan Shilling and Egyptian Pound

Mozambique and Equatorial Guinea in the election spotlight African elections are back in the spotlight this week, with the world’s longest-serving president—Teodoro Obiang in Equatorial Guinea—announcing he intends to run again in November’s elections to extend a 43-year tenure that began after a coup he led in 1979. Also this week, Mozambique President Filipe Nyusi […]

Record lows for Naira, Cedi, and Shilling

Zambia debt relief talks spur Kwacha rally Zambia’s Kwacha has been one of the best-performing currencies this year, gaining 18.5% against the dollar since January despite the economy creaking under the weight of unsustainable debts. Restructuring talks have been ongoing this month, with lenders including BlackRock, the world’s largest asset manager, under pressure to write […]

Inflation Surge Continues To Dampen FX Outlook

Inflation surge continues to dampen FX outlook Rising inflation continues to dampen the outlook for many currencies in Africa. The Bank of Ghana is battling 21-year high inflation at 33.9%, making the Cedi the world’s second worst performing currency this year (see Ghana report below). In Malawi, inflation has more than doubled since the start of the year […]

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 […]