Currency | - Part 6

Nigeria’s Naira Slumps as 15-Month Currency Peg Ends in Lagos

LAGOS, Nigeria, Capital Markets in Africa: Nigeria’s naira weakened 22 percent to 253.50 per dollar after the central bank allowed the currency of Africa’s biggest economy to float freely on Monday. Demand for foreign currency has built up to about $3 billion since capital controls were imposed 15 months ago to defend the currency’s peg of 197-199 per dollar, according to Chapel Hill Denham Securities Ltd. Even as the naira weakens, local stocks may extend the best three-day rally…

Market Watch | Stocks Slide as Central Banks Fail to Reassure; Yen, Gold Climb

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LAGOS, Nigeria, Capital Markets in Africa: Stocks slid with commodities after central banks in the U.S and Japan signaled increased concern about the global economic outlook. Gold and bonds rose on haven demand, while the yen climbed to the highest since 2014. The Stoxx Europe 600 Index fell to a four-month low and U.S. crude retreated for a sixth day in the longest losing streak since February. Bond yields sank to records in Germany, Australia after Japan as Federal Reserve…

Nigerian Naira Devaluation Bets Surge Before Nigeria Unveils New Policy

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LAGOS, Nigeria, Capital Markets in Africa: Naira forward contracts surged to a record as traders anticipated Nigeria’s central bank would devalue the currency on Wednesday as part of a new foreign-exchange policy. Governor Godwin Emefiele will make a televised announcement from around 2 p.m. in Abuja, the capital, according to Isaac Okorafor, a central bank spokesman. Twelve-month non-deliverable naira forward contracts surged 3.3 percent to352 per dollar, a record on a closing basis, as of 11:27 a.m. in…

Emerging Markets Halt Brexit Slump on Wagers for Fed Status Quo

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LAGOS, Nigeria, Capital Markets in Africa: Developing-nation stocks and currencies rebounded from a four-day slide as MSCI Inc.’s decision not to include Chinese mainland shares in its indexes buoyed smaller markets and investors wagered the Federal Reserve would adopt dovish language in its Wednesday statement. Equity benchmarks in Hungary, Romania, India and the Czech Republic advanced at least 1 percent each. Chinese stocks traded in Hong Kong also rose as the index provider’s decision late Tuesday meant there…

Egypt Approves Tougher Penalties on Black Market Dollar Traders

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CAIRO, Egypt, Capital Markets in Africa: Egypt approved tougher measures against illegal foreign currency traders as authorities seek to ease dollar shortages that are contributing to economic weakness. The government increased jail time for black market trading to as long as 10 years and raised fines, the cabinet said in an e-mailed statement. Other amendments to the central bank law give the governor the authority to suspend currency bureaus’ licenses and impose fines for violations. The…

Zimbabwe’s Black Market, Where the Dollar Trades Against Itself

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HARARE, Zimbabwe, Capital Markets in Africa: In Zimbabwe — the country that once suffered 500 billion percent inflation — one dollar may now cost you as much as $1.07. A shortage of banknotes is resulting in a new black market more than seven years after Zimbabwe abolished its own money, the Zimbabwean dollar, and adopted the greenback and other foreign currencies to avoid exactly that sort of unofficial trading. The cash crunch has intensified in…

Buhari Gives Nigeria Central Bank Go-Ahead on Flexible Naira

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LAGOS, Nigeria, Capital Markets in Africa: Faced with an economy nearing recession and inflation at the highest in almost six years, Nigerian President Muhammadu Buhari has backed down on his refusal to allow the naira to weaken. Buhari has given the central bank the go-ahead to introduce a more flexible exchange-rate system even as he remains opposed to devaluation of the naira, said Garba Shehu, his spokesman. “The president is opposed to devaluing the naira, he has said…

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