Forex | - Part 3

South Africa’s rand jumps to 2-month high, stocks flat

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand gained more than two percent on Thursday to hit its strongest level in two months as the dollar plunged on concerns over U.S. President-elect Donald Trump’s economic strategy. Stocks were flat overall but luxury goods group Richemont gained 6 percent to reach a 10-month high after posting stronger than expected sales. By 1501 GMT the rand had gained 2.2 percent to 13.4475 per dollar, following most currencies…

Nigeria Central Bank Won’t Devalue Naira, Traders’ Union Says

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The Central Bank of Nigeria has no plans to devalue the naira, the head of a money changers’ body said after meeting policy makers. Officials are “not looking at devaluation” as rising oil prices boost reserves, according to the Association of Bureaux De Change Operators of Nigeria. The naira was little changed at 315.34 per dollar on Thursday, while Brent crude traded above $56 per barrel. “They assure us that people have…

Emerging-Market Currencies Climb as Lira Rebounds From Lows

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Emerging-market currencies rose the most in 10 months as the Turkish lira’s rebounded from record lows on speculation the central bank will take steps to support it. The MSCI Emerging Market Currency Index surged by the strongest pace since March and a similar gauge of stocks is on track to erase losses recorded after Donald Trump’s election in November. The U.S. President-elect news conference on Wednesday failed to support fiscal expansion…

Nigeria Traders to Start Exchange Rate in Black Market Fight

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigeria’s money-changers will introduce an exchange rate for the naira to help the central bank combat unregulated trading. Licensed dealers, known as bureaux de change, or BDCs, will post an exchange rate each Monday on their website from Jan. 16 to “highlight positive rate development in the market” and counter domains such as abokifx.com, which publishes unofficial prices daily, Aminu Gwadabe, the head of the local BDC association, told reporters…

MTN Drops Most in Month as Naira Traders Plan Weaker Rate vs USD

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) — Telecom operator’s shares drop after currency traders in MTN’s biggest market, Nigeria, announce plans to introduce parallel exchange rate of 399 per dollar for naira from January 16. Stock falls as much as 4.6%, trades 3% lower at 129.89 rand as of 11:57 am in Johannesburg; biggest drop since Dec. 15. Nigerian retail currency traders will set the FX rate before the central bank meeting and they’ve set it…

Devaluation Looms for Nigeria Even as Forwards Ease on Oil

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The Nigerian naira’s recovery in the forwards market may be deceptive. The currency is destined to weaken, however, long policy makers hold out. Six-month contracts declined to their lowest level since September last week as crude oil, Nigeria’s top export, advanced about 20 percent after OPEC agreed to a production cut in November. A drop in forwards would typically be a sign of growing confidence in a nation’s economy and currency, but…

Kenyan Central Bank Said to Warn Bankers Over Shilling Comments

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) — Central bank warns bankers, traders not to make comments, forecasts about shilling that it deems too negative, according to people familiar with matter. Some bank executives summoned to meetings with policy makers last week, others telephoned individually. Central bank blames speculators for shilling’s recent slide; told bankers to allow currency to be guided by market fundamentals. Kenyan Shilling has weakened every trading since December 23, longest losing streak since…

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