Nigeria Central Bank’s Acting as Piggy Bank, MPC Member Says

Nigeria Central Bank’s Acting as Piggy Bank, MPC Member Says

LAGOS (Capital Markets in Africa) Nigeria’s central bank is acting like a “piggy bank” with its funding of the government, according to a member of the Monetary Policy Committee who said he struggles to understand the regulator’s economic rationale. Monetary data showed a “sharp rise” in the Central Bank of Nigeria’s financing of the government deficit this year, Doyin Salami said after the MPC’s July 24-25 meeting, according to a central bank statement published Tuesday. The regulator’s…

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The Reason Why South Africa’s Central Bank May Cut Again This Week

The Reason Why South Africa’s Central Bank May Cut Again This Week

JOHANNESBURG (Capital Markets in Africa) – If South Africa’s central bank cuts interest rates again this week, just don’t accuse it of doing so for the sake of “socioeconomic well-being.” The institution has been fighting off a bid by the nation’s anti-graft ombudsman to change its mandate away from targeting inflation to focusing on the financial health and quality of life of its citizens. But officials might be about to deliver their second rate reduction this…

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Global Central Banks Can’t Ignore the Bitcoin Boom, BIS Says

Global Central Banks Can’t Ignore the Bitcoin Boom, BIS Says

LAGOS (Capital Markets in Africa) – The world’s central banks can’t ignore the growth in cryptocurrencies and may at some point have to consider whether it makes sense for them to issue their own digital currencies, according to the Bank for International Settlements. “Whether or not a central bank should provide a digital alternative to cash is most pressing in countries, such as Sweden, where cash usage is rapidly declining,” the BIS said in its quarterly review….

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Kenyan Politics Limbo Hinders Central Bank on Currency Risk

Kenyan Politics Limbo Hinders Central Bank on Currency Risk

NAIROBI (Capital Markets in Africa) – On Monday, Kenya’s central bank may have little choice but to do what the rest of the country is stuck with: waiting for a rerun of its presidential election. With political limbo reigning since the Supreme Court’s annulment of the previous attempt at a national vote on Aug. 8, officials are left contemplating the effects of prolonged uncertainty on an economy that also faces slowing growth and persistent inflation….

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South Africa Central Bank Says Graft Ombudsman Met Zuma Lawyers

South Africa Central Bank Says Graft Ombudsman Met Zuma Lawyers

JOHANNESBURG (Capital Markets in Africa) – The country’s graft ombudsman used a probe into an apartheid-era bailout of a lender to attack the South African Reserve Bank and didn’t disclose a meeting with lawyers in President Jacob Zuma’s office to discuss the investigation before its findings were released, the central bank said. Public Protector Busisiwe Mkhwebane instructed lawmakers in a June 19 report to amend the constitution to make the bank focus on the “socioeconomic well-being of the citizens”…

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Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

WINDHOEK (Capital Markets in Africa) – Namibia’s central bank reduced its key rate for the first time since 2012 as consumer prices rose at the slowest pace in almost two years last month and the economy contracts. The Monetary Policy Committee reduced the repo rate by 25 basis points to 6.75 percent, Bank of Namibia Deputy Governor Ebson Uanguta told reportersWednesday in capital, Windhoek. Inflation in the southwest African nation, the world’s biggest producer of marine diamonds, was 5.4…

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South Africa Court Scraps Bid to Alter Central Bank Role

South Africa Court Scraps Bid to Alter Central Bank Role

JOHANNESBURG (Capital Markets in Africa) – South Africa’s High Court scrapped a bid by the nation’s anti-graft ombudsman to change the central bank’s inflation-targeting mandate. The Public Protector’s instruction that lawmakers should start a process to change the constitution and amend the Reserve Bank’s mandate is set aside, Judge Cynthia Pretorius said in a ruling. The judgment removes the risk of politicians interfering in the functioning of the central bank and may ease concerns about…

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