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Praet’s Cautious Approach to ECB Bond Buying Attracts Doubts

LONDON (Capital Markets in Africa) – The European Central Bank’s ultra-cautious approach to removing stimulus triggered varying reactions, including a defense by chief economist Peter Praet and criticism from one of his former colleagues. Addressing a workshop in Frankfurt on Monday, Praet argued that the Governing Council’s decision to keep quantitative easing open-ended was appropriate as inflation in the 19-nation euro region remains subdued. For Francesco Papadia, a former director general for market operations at the ECB, officials had…

CFA franc peg to Euro sustainable

Posted on by The Editorial Team

Standard Chartered Bank considered that a devaluation of the West African CFA franc and the Central African CFA franc, which are both pegged to the Euro, is not likely in the near term. The CFA franc is the common currency of the West African Economic & Monetary Union and the Central African Economic & Monetary Community. First, it anticipated that the depreciation of the Euro against the US dollar would benefit the CFA franc zones…