The Markets

LAGOS (Capital Markets in Africa) – It took only a small change in wording on the Nigerian central bank’s website this week to get some analysts speculating that the nation’s multiple exchange-rate system was on its last legs. The monetary authority subsequently denied anything had changed, but the flurry of excitement it caused was telling. Most foreign investors say the currency regime will break at some point, causing Nigeria to revert to a single exchange rate and perhaps even go for…

LAGOS (Capital Markets in Africa) – South African platinum producers are preparing for significant wage demands as workers eye windfall earnings from a rally in metal prices. The Association of Mineworkers and Construction Union is meeting its members across the country’s so-called Platinum Belt this week, before presenting demands on Friday to seven producers, including Anglo American Platinum Ltd., Sibanye Gold Ltd., and Impala Platinum Holdings Ltd., Secretary General Jeffrey Mphahlele said. The largest and most militant…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Public Investment Corp. faces a tough choice: back Sibanye Gold Ltd.’s takeover of Lonmin Plc, and take a hit on its investment, or scupper the deal and risk having to pony up more cash for the platinum miner. When Lonmin shareholder votes are tallied next Tuesday at a meeting in London, the PIC’s 30% stake would be enough to block the acquisition. While the takeover was originally touted as…

HARARE (Capital Markets in Africa) – Zimbabwe’s attempt to close a wide gap between its official and black-market exchange rates appears to be failing. The southern African nation effectively devalued its currency, known as RTGS$, in February when it ended a peg to the U.S. dollar and allowed it to trade on an interbank market. That was to try to end dire shortages of fuel, medicine and other imported goods. It hasn’t worked out as planned: the…

ABIDJAN (Capital Markets in Afrioca) – Ivory Coast is requesting proposals from banks to issue as much as 500 million euros ($557 million) in foreign bonds to refinance more expensive debt, according to people familiar with the matter. The world’s top cocoa grower, which budgeted to raise 1.44 trillion CFA francs ($2.5 billion) of debt in 2019, wants to redeem some of its euro-denominated securities, said the people, who asked not to be identified because they’re…

LONDON (Capital Markets in Africa) – The pound looked set to end a record run of losses against the euro as Theresa May’s resignation as U.K. prime minister led traders to take bets on further political turbulence off the table. Sterling gained for the first time in 15 sessions against the common currency Friday, having been battered this month by the prospect that a hard-line Brexit candidate could replace May. With that risk now factored into…

LAGOS (Capital Markets in Africa) – Oil extended losses after a surprise jump in American crude inventories alleviated concerns over a supply crunch, while fears of a full-blown trade war between the U.S. and China weighed on the outlook for demand. Futures fell as much as 1% in New York after tumbling 2.7% on Wednesday, the biggest drop in almost three weeks. American stockpiles rose by 4.7 million barrels last week to the highest level since mid-2017, despite expectations for…