Record-High Nigeria Rate Seen Held on Inflation, Naira Woes

Record-High Nigeria Rate Seen Held on Inflation, Naira Woes

LAGOS (Capital Markets in Africa) – Now that Nigeria’s economy is recovering from its worst slump in 25 years, the central bank can turn its focus to fighting inflation again — and shoring up its currency. The Monetary Policy Committee has kept its interest rate at a record-high 14 percent since July 2016, trying to support the economy, and will probably hold it there at its decision this week to contain above-target consumer-price growth. Officials can take heart…

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Kenya’s Central Bank Holds rate at 10.0 percent, Likely to Sell Dollars

Kenya’s Central Bank Holds rate at 10.0 percent, Likely to Sell Dollars

NAIROBI (Capital Markets In Africa) – At its Monetary Policy Committee meeting this month, Kenya’s central bank held its rate at 10.0 percent. Its Monetary Policy Committee will next meet to set lending rates on Sept.18. While the currencies of Kenya, Nigeria and Tanzania are expected to hold steady, traders said Uganda’s shilling and Zambia’s kwacha are forecast to weaken against the dollar in the next week to Thursday, while Ghana’s cedi will firm. KENYA…

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Nigerian Banks Outstrip Peers on Returning Dollar, Old Mutual Up

Nigerian Banks Outstrip Peers on Returning Dollar, Old Mutual Up

LAGOS (Capital Markets in Africa) – Since the Nigerian central bank eased a dollar shortage by opening a currency-trading window for foreign investors in April, lenders in Africa’s biggest economy have soared. The local banking index is up 35 percent this quarter, outstripping South Africa’s equivalent stock gauge and MSCI’s emerging-market financials index. Even after the jump, Guaranty Trust Bank is the sole Nigerian lender in the index to trade above its book value, while none of…

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Nigerian Central Bank to Keep Tight Monetary Policy, Nnanna Says

Nigerian Central Bank to Keep Tight Monetary Policy, Nnanna Says

LAGOS (Capital Markets in Africa)- Nigeria’s central bank will keep monetary policy tight as dollar shortages persist, Deputy Governor Joseph Nnanna said Now is not the time to ease policy, he said in an interview Thursday in the capital, Abuja. Inflation slowed for a third month in April, but at 17.2 percent remains almost double the upper limit of the bank’s 6 percent to 9 percent target. “We are battling with liquidity as it were, so tight monetary…

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Stress Sign: Black Market’s Cheaper Than Official Naira Rate

Stress Sign: Black Market’s Cheaper Than Official Naira Rate

LAGOS (Capital Markets in Africa) – Nigeria’s new currency market is showing just how severe the country’s dollar shortage is. The naira is falling to levels weaker than the black-market rate in a foreign-exchange window set up for international investors and hedge funds last month. It’s a sign of how dysfunctional currency markets have become in Africa’s largest economy as officials enforce multiple exchange rates and trading and import restrictions. Funds including Chicago-based Frontaura Capital, South Africa’s Allan…

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Nigeria Said to Let Market Set Naira Rate on Exchange Window

Nigeria Said to Let Market Set Naira Rate on Exchange Window

LAGOS (Capital Markets in Africa) – Nigeria’s central bank will let the market determine the naira’s rate in a new foreign-exchange window for portfolio investors as the nation struggles to revive its economy amid a dollar shortage. Naira forward contracts and banking stocks rose. Governor Godwin Emefiele told senior bankers that he would tolerate the naira weakening in the window, which started today, according to a person who attended meetings with the policy maker over the past two…

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Central Banks in Africa Keep Rates Amidst Fed Rate Hike in March

Central Banks in Africa Keep Rates Amidst Fed Rate Hike in March

LAGOS (Capital Markets in Africa) –  Tanzania’s central bank cut its discount rate to 12percent from 16 percent on Monday 6th March 2017, to help spur lending and boost economic growth, the first time it has lowered borrowing costs since 2013. The cut, which the central bank said in a circular to commercial banks becomes effective on Monday, follows a steep drop in private sector credit growth last year. “The discount rate which is applicable…

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