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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 […]

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 […]

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 […]

Africa’s worst currency at precipice; Naira risk rises amid #EndSARS

Africa’s worst performing currency at a precipice African nations have continuously taken more and more debt from China for infrastructure development. The day of reckoning is approaching for Zambia, which is set either to default on its international borrowings on Nov. 13 or agree to a restructuring of commitments in tandem with an IMF program. […]

Rand poised for Ramaphosa recovery plan; Tanzania Shilling stable before election

Dollar hoarders test CBN mettle The Naira lost ground from last week’s gains, sliding to 461 to the dollar in the unofficial market from 457 a week ago. Lower oil export revenue and the economic impact from the pandemic will cause external reserves to sink to between $29.9b and $34.3b, from $35.7b in September, the CBN […]

Mali’s hidden risk in currency clampdown; Lowest Kenyan Shilling has further to fall

Hidden danger in Mali coup from currency clampdown Beyond the fallout from political turmoil in Mali, a clampdown on transactions in the West African CFA Franc risks adding to the COVID-era economic disarray. Within hours of the military seizing power, the Central Bank of West African States (BCEAO) announced protective restrictions on the flows of […]

Naira activity subdued post-Eid; Importer obligations weigh on Kenyan shilling

Naira activity subdued post-Eid With minimal activity after the two-day Eid holiday, the Naira appreciated slightly to 473 per dollar in the parallel market at the beginning of the week before slipping back to 474. A shortage of dollars persists given recent weeks of lower revenue from oil, Nigeria’s biggest foreign exchange earner. Demand has […]

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