Investment in Africa: Managing Currency Risk — Andrew Gillespie

Investment in Africa: Managing Currency Risk — Andrew Gillespie

Volatility is not a new word for investors in Africa. Events of 2014 and this year across the continent highlight this – especially in the continent’s currency markets. Irrespective of the market, or country; be it via private equity, listed equity, fixed income, or underlying trade and capital flows – managing FX volatility and risk is a constant feature of the evaluation process. For most participants, it is often a frustrating, opaque and expensive exercise,…

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Bank of Mauritius cuts the Key Repo Rate by 25 basis points to 4.40 per cent

Bank of Mauritius cuts the Key Repo Rate by 25 basis points to 4.40 per cent

Port Louis, Capital Markets in African — The Monetary Policy Committee (MPC) of the Bank of Mauritius (Bank) has unanimously decided to cut the Key Repo Rate by 25 basis points to 4.40 per cent per annum to boost domestic economic activity, at its meeting on Monday 9 November 2015. The Key Repo Rate had been kept at 4.65 percent since June 2013 when it was reduced by 25 basis points from 4.9 percent. See…

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Bank of Namibia maintains Repurchase Rate at 6.50 percent, amid of strong foreign reserves

Bank of Namibia maintains Repurchase  Rate at 6.50 percent, amid of strong foreign reserves

Windhoek, Namibia, Capital Markets in Africa — Bank of Namibia keeps the Repurchase (Repo) rate unchanged at 6.50 percent at the Monetary Policy Committee  meeting held on the 20th October 2015 ,  according to Monetary Policy Committee (MPC) statement issued by Deputy Governor  of the Bank,  Mr. Ebson Uanguta. In the statement, the decision to keep the rate at 6.50 percent was underpinned by the recent improvement in the key economic indicators despite weak activities…

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Chart of the Week: Top Worst African Currency in 2015 ….

Chart of the Week: Top Worst African Currency in 2015 ….

Lagos, Nigeria, Capital Markets in Africa  — Most African currencies had depreciated against the US dollar this year, with the exception of Gambian Dalasi, CFA Fran and Botswana Pula appreciated by about 0.07 percent each. The top five most worst currencies in 2015 as at 16th of October 2015 were Zambian Kwacha, Ugandan Shilling, Angola Kwanza, Mozambican Metical and Tanzania Shillings. 

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Zambians say our Lord’s Prayer: Gives us our daily bread …

Zambians say our Lord’s Prayer: Gives us our daily bread …

Lusaka, Zambia, Capital Markets in  Africa — Zambian President Edgar Lungu wants Zambians to pray and fast on this Sunday. All bars, nightclubs and entertainment venues have been instructed by the government to shut on the day, while the Football Association of Zambia has cancelled domestic games. Church leaders are rallying their members to heed the president’s call in a nation where more than 80 percent of the 15 million people are Christian. The country prayer…

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Central Bank of Egypt sold US$37.8mn in FX and offered EGP 7bn in T-bills..

Central Bank of Egypt sold US$37.8mn in FX and offered EGP 7bn in T-bills..

Cairo, Egypt (Capital Markets in Africa) — The Central Bank of Egypt (CBE) reported that US$37.8 million was sold to banks out of the US$40 million on offered in a foreign currency auction held today. The Egyptian pound remained unchanged at cut-off price of 7.73 against the dollar. However, the CBE allowed the Egyptian pound to depreciate by EGP 0.20 from 7.53 against the greenback in July. In addition, the CBE announced on Sunday issuing treasury bills worth EGP…

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Nigerian Naira and Kenyan Shilling overvalued say Renaissance Capital

Nigerian Naira and Kenyan Shilling overvalued say Renaissance Capital

Johanneburg, South Africa (Capital Markets in Africa) — Renaissance Capital finds the Kenyan shilling to be especially vulnerable but believes the Nigerian naira should weaken more than the shilling. Sub-Sahara African (SSA) currencies have in recent months come under significant pressure. Of eight SSA currencies we analysed, we found the Kenyan shilling to be especially vulnerable (as it is an overvalued currency that depreciated by less than the EUR/$). However, Nigeria’s limited policy space, implies the naira should…

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