FX | - Part 2

Nigeria edging closer to China — Bank of America Merrill Lynch

Lagos, Nigeria, Capital Markets in Africa — Buhari’s recent trip to China generated impressive headlines on funding. If the whole $6bn infrastructure loan is disbursed, it could give a significant boost to Nigeria’s productivity. However, in the short term, the focus is on some important details of the currency swap arrangement and to what extent it can alleviate the pressure on Nigeria’s FX reserves. CBN lauds currency swap with China, but important details are missing The…

Buhari Says Nigeria’s Currency Squeeze Is a ‘Temporary Phase’

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Market in Africa — Nigerian President Muhammadu Buhari said the foreign-exchange squeeze being faced by the country is a “temporary phase” to be overcome when structural problems are addressed. “It grieves me that so many manufacturing industries in the country today are groaning and frustrated because of lack of foreign exchange to import raw materials and spare parts,” Buhari said Monday at the start of a meeting on the economy in Abuja,…

Nigerian Naira and Kenyan Shilling overvalued say Renaissance Capital

Posted on by The Editorial Team

Johanneburg, South Africa (Capital Markets in Africa) — Renaissance Capital finds the Kenyan shilling to be especially vulnerable but believes the Nigerian naira should weaken more than the shilling. Sub-Sahara African (SSA) currencies have in recent months come under significant pressure. Of eight SSA currencies we analysed, we found the Kenyan shilling to be especially vulnerable (as it is an overvalued currency that depreciated by less than the EUR/$). However, Nigeria’s limited policy space, implies the naira should…

Egypt central bank sells $98.6m in regular auction

Posted on by The Editorial Team

Cairo, Egypt (Capital Markets in Africa)–The Central Bank of Egypt (CBE) sold on Sunday $98.6 million in its regular FX auction reaching $100 million. The average selling price reached $7.53 in the auction No. 373, the CBE said on its website.

Egypt’s foreign reserves decline to $19.6bn at May-end

Posted on by The Editorial Team

Cairo, Egypt (Capital Markets in Africa) — Egypt’s net foreign reserves slipped to $19.559 billion at May-end, a decline of 4.7% compared to $20.525 billion in April, the Central Bank of Egypt (CBE) said on Sunday. Egypt received $6 billion in subsidies from Saudi Arabia, Kuwait and the UAE, the bank’s governor Hisham Ramez said in April. The country’s foreign reserves stood at nearly $36 billion before the 2011 revolt, but plummeted in the resulting political…

Nigeria’s central bank adjusts FX rate to 196.95 per dollar

Posted on by The Editorial Team

Lagos (Capital Markets in Africa): – Nigeria’s central bank adjusted its exchange rate peg to 196.95 naira to the dollar from the 197 it set in February after the currency’s value was eroded by the fall in oil prices, data on its website showed on Thursday. The bank adjusted the rate at which it sold hard currency this week, dealers said, noting that the change was too small to be considered a revaluation for the naira,…

Angola’s central bank devalues kwanza by about 6 pct

Posted on by The Editorial Team

Luanda, Angola (Capital Markets in Africa) – Angola’s central bank devalued the kwanza currency by about 6 percent against the dollar, a statement showed, a move analysts said was aimed at stimulating foreign currency inflows eroded by falling global oil prices. According to the bank’s latest update on the official exchange rate, issued late on Thursday, one U.S. dollar will now cost 116-117 kwanza, compared with 109-111 before. The exchange rate is however much higher…

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