Author: The Editorial Team

LAGOS (Capital Markets in Africa) – Nigerian trade consultant Bamidele Ayemibo says it’s easier to sell his bean cake snacks to China than to neighboring Benin. Trading with any of the other members of the Economic Community of West African States requires him to find expensive money changers to convert local currencies, adding to costs that are already high due to dilapidated roads. He prefers selling to customers who hold hard currencies in London or…

LAGOS (Capital Markets in Africa) – Investors looking to escape $15 trillion of negative yielding debt may want to err on the side of caution before buying a dip in emerging-market currencies. In the wake of an escalating trade war and China’s decision to weaken the yuan on Monday, the risk-adjusted carry on five major crosses in the developing world has slumped to the lowest since early January, falling below this year’s average. The gauge is a measure…

LAGOS (Capital Markets in Africa) – Senior People’s Bank of China officials reassured foreign companies that the currency won’t continue to weaken significantly, a day after the yuan fell below 7 per dollar for the first time since 2008. The central bank held a meeting with a number of foreign exporters in Beijing Tuesday, at which officials also said that companies’ ability to buy and sell dollars would remain normal, according to a statement provided to Bloomberg. The yuan…

JOHANNESBURG (Capital Markets in Africa) – The weight of bad news about the economy has proved too much for bank stocks traded in Johannesburg, pushing a sector index to technically oversold levels for the first time in more than two years. While the index was 1.2% higher Tuesday, rising for the first time in six sessions as a stronger rand brought some relief, it has dropped 15% since President Cyril Ramaphosa pledged a relentless focus on growth…