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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 […]

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 […]

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%. […]

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