African currency |

Wall Street Braces for Emerging-Market Jolt by Dodging Dollar

LAGOS (Capital Markets in Africa) – After two years of almost uninterrupted gains in developing-nation currencies against the U.S. dollar, it’s time for a new strategy. That’s the assessment of traders who’ve grown anxious that the greenback’s 16 percent slide against a basket of emerging-market currencies since January 2016 has gone too far. The latest inflation reading in the world’s largest economy added to concern, possibly giving the Federal Reserve cover to tighten monetary policy. At the same time,…

Moody’s: Angolan Banks FAQ answers investors’ questions on correspondent banking pullback

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London (Capital Markets in Africa) – In a new report Moody’s Investors Service answers investors’ questions about the credit implications for Angolan Banks, such as Banco Angolano de Investimentos, S.A. (BAI, BCA b3, LT local currency bank deposits B1, Negative), of the recent reduction in correspondent banking services. The report, “Banco Angolano de Investimentos, S.A. (BAI) Case Study: Angolan banks face challenges meeting dollar obligations following loss of correspondent bank relationships,” is now available on…

Top-Performing Arab Economy Balks at Currency Float on Egypt

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CAIRO (Capital Markets in Africa) – In five decades of importing steel wires, Zahar Benmoussa’s company never worried about currency risks — until Morocco announced plans to float the dirham. “For the first time in our history, we started to hedge” in the currency market, said Benmoussa, managing director at Casablanca-based Grillages Marocains. Across Morocco, fears of a weaker dirham triggered a rush for dollars and euros, causing a $3 billion drop in its reserves in…

Goldman’s Contrarian View on South Africa’s Rand

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JOHANNESBURG (Capital Markets in Africa) – There’s still some momentum left in South African rand’s rally, according to Goldman Sachs Group Inc. The 148-year-old Wall Street lender predicts the currency will extend its 17 percent gain since the beginning of 2016 to end the year at 13 per dollar, a level last seen in 2015. That’s a view shared by only three out of 26 analysts in a Bloomberg survey: the median forecast is for the currency…

Newly floated Egyptian pound moves little as interbank trading begins

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CAIRO (Capital Markets in Africa) – Egypt’s pound was almost steady early on Sunday as banks began trading freely for the first time since authorities ditched the currency’s peg in a policy shift designed to crush a black market and clinch an International Monetary Fund loan. Interbank trading began at 1030 a.m. (0830 GMT) but activity was extremely slow because banks were uncertain about the propects for supply and demand of U.S. dollars. The pound…

South African Rand Leads Currency Declines as Liquidity Dwindles

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JOHANNESBURG, Capital Markets in Africa: South Africa’s rand fell the most in more than two weeks against the dollar, leading global currency losses amid lingering political risks and as central banks signaled they are starting to question further monetary easing. The rand declined 1.9 percent to 14.3946 per dollar by 3:38 p.m. in Johannesburg, heading for the biggest drop since Aug. 23, after a police unit summoned Finance Minister Pravin Gordhan to answer to charges related to alleged irregularities…

Currency conundrums in Zimbabwe

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HARARE (Capital Markets in Africa) – Zimbabwe abandoned the use of its own currency, the Zimbabwe dollar, in February 2009 and adopted a multi-currency regime. The demise of the Zimbabwe dollar was not mourned. By the time it was phased out it had lost all credibility as a medium of exchange, after years of hyperinflation running to many million percent. While the multi-currency regime legalised the use in Zimbabwe of a number of currencies, among…

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