Banking

HARARE (Capital Markets in Africa) — Zambian President Edgar Lungu told his new central bank chief to stabilize Africa’s worst-performing currency as the southern African nation tries to convince private creditors to provide debt relief. Lungu urged Governor Christopher Mvunga at a swearing-in ceremony on Tuesday to “redouble efforts” and work with the Finance Ministry to achieve stability in the kwacha, according to a speech emailed by the presidency. Lawmakers confirmed Mvunga’s appointment on Oct. 1. The…

LAGOS (Cap[ital Markets in Africa) — A wave of hefty fines against major banks in the past decade spurred an explosion in the number of transactions that lenders flag as suspect to the U.S. government. It’s not clear all the scrutiny is making a difference. Banks moved money for people or entities they couldn’t identify, and in many cases failed to file the required suspicious activity reports until years afterward, according to an investigation released over the…

CASABLACA (Capital Markets in Africa) — The economic disruptions caused by the spread of the coronavirus are exposing the limits of monetary policy in Morocco, with inflation staying below zero even after the central bank’s biggest interest-rate cut in history. An easing cycle that started in March has done little to get the $119 billion economies back on track just as other defenses are proving inadequate and virus cases surge. Reducing the benchmark from a…

LAGOS (Capital Markets in Africa) – With emergency stimulus done, for now, central banks across Sub-Saharan Africa (SSA) are likely to hold rates in the coming weeks despite higher inflation. That will allow for the full effects of stimulus measures to take place now that most restrictions have been lifted. The pause reflects their desire to strike a balance between maintaining price stability, reducing exchange-rate pressures, and stimulating the domestic economy. Central banks will continue…

LAGOS(Capital Markets in Africa) — Nigerian central bank adjusted the exchange rate of the naira on its website to reflect the devaluation of the local currency last month. The Abuja-based bank will exchange a dollar for 379 naira compared with 360 previously as an official exchange rate, according to an update of the rate on its website on Friday. The currency’s official value was reduced by 5.3% to 381 per the dollar last month on…

LAGOS (Capital Markers in Africa) — The Central Bank of Nigeria held interest rates as it remains concerned about a persistent increase in inflation. Of the 10 members of the monetary policy committee who attended its meeting, eight voted to keep the rate unchanged at 12.5%, Governor Godwin Emefiele said at a briefing in the capital, Abuja, on Monday. That matched the median estimate of seven economists in a Bloomberg survey. Key Insights The unchanged stance could…

LAGOS (Capital Markets in Africa) — Nigeria’s central bank wants the nation’s lenders to restructure almost two-thirds of all loans to help borrowers cope with lower oil prices and economic fallout from the coronavirus. Loans worth 7.8 trillion naira ($20 billion) to 35,640 customers are already being reorganized out of 18.9 trillion naira in credit across the industry, Central Bank of Nigeria Governor Godwin Emefiele said on Monday. The central bank would be “more comfortable” if 65% of loans…