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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 […]

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 […]

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 […]

Stimulus wind down is Q4 booster for Africa FX; Rand indicators point positive

Stimulus wind down is Q4 booster for Africa FX Stimulus measures taken up by most central banks in Africa in the initial phases of the pandemic are on hold with economies reopening. Ghana kept its policy rate steady this week at 14.5%, following freezes in South Africa’s policy rate at 3.5% and Kenya’s at 7%. […]

Increased Pressure on African Currencies Amidst COVID-19 Chaos

Nigeria in lockdown faces bank pressure The Naira tumbled to its weakest level in 5 years in the parallel market at 415 per dollar, widening the gap with an official rate of 386 (See: current naira to dollar exchange rate). With 14-day lockdowns announced last week for Lagos and Abuja hitting productivity, banks came under […]

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