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% […]

African leaders call for expanded IMF support

African presidents from countries including the Democratic Republic of Congo and Senegal called for the IMF to triple the amount of money available to Africa under the fund’s Special Drawing Right reserves to $100 billion to support countries hard hit by the coronavirus pandemic. The leaders were attending the African Economies Funding Summit in Paris […]

Egypt’s stable pound offers lesson in loosening FX restrictions

Egypt’s stable pound offers lesson in loosening FX restrictions The Egyptian Pound has been one of the strongest-performing African, and indeed emerging market, currencies since the start of 2019, on the back of improving investor confidence and the government’s economic stimulus package. The currency appreciated by more than 2% from a low of 16.22 against the US dollar since […]

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 […]

Biden presidency rekindles Africa optimism

Biden presidency rekindles Africa optimism  Joe Biden’s inauguration brings renewed optimism for Africa, with key appointments and friendlier policies set to strengthen cooperation between the US and African nations. President Biden’s administration will help drive support from G-20 countries for debt relief, restructuring, and deferment for low-income counties, mostly in Africa, and spur concessional finance […]

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 […]