{"id":473695,"date":"2021-09-12T11:04:46","date_gmt":"2021-09-12T11:04:46","guid":{"rendered":"https:\/\/www.kapitalafrik.com\/?p=473695"},"modified":"2021-09-12T11:06:10","modified_gmt":"2021-09-12T11:06:10","slug":"african-currencies-weekly-insght-aza","status":"publish","type":"post","link":"https:\/\/www.financialafrik.com\/en\/2021\/09\/12\/african-currencies-weekly-insght-aza\/","title":{"rendered":"African currencies weekly insight (Aza)"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div><p><strong><span style=\"font-size: 14pt;\">In this weekly column on African currencies, experts from AZA, the largest non-bank currency broker in Africa, with a transaction volume of more than $ 1 billion per year, analyze the evolution of currency fluctuations on the continent.<\/span><\/strong><\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"font-size: 14pt;\">Chad debt relief plan hinges on private creditor talks<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>The IMF this week called on private creditors to step up debt talks with Chad as part of a restructuring process that will unlock funding the country urgently needs as its economy staggers from the combined shocks of Covid-19, lower oil prices, climate change and terrorist attacks. Government creditors have already reached an agreement with Chad after it became the first country to ask for a debt overhaul under a new G20 common framework. Unlocking those funds is vital given that Chad\u2019s financial strains have forced the country to cut critical social and development spending, which could have serious social and security implications if not reversed, the IMF said.<\/p>\n<p><strong>Michael Nderitu<\/strong><strong><br \/>\nChief Risk Officer, AZA.<\/strong><\/p>\n<hr \/>\n<p>The Naira hit a fresh record low against the dollar this week, depreciating to 535 on the unofficial market from 530 at last week\u2019s close as demand for the greenback from importers continues to bump up against scarce market liquidity, which has been exacerbated by the Central Bank of Nigeria banning FX sales to the country\u2019s bureau de change outlets. Despite the current weakness, the central bank on Tuesday said it still expects the country\u2019s unofficial and official rates to converge. The Naira was trading at 411.30 to the dollar on the NAFEX window this week. We expect the currency pressure to persist in the coming days as demand for forex continues to outweigh supply.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Naira-rate.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-473696\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Naira-rate.jpg\" alt=\"\" width=\"447\" height=\"265\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Naira-rate.jpg 447w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Naira-rate-300x178.jpg 300w\" sizes=\"(max-width: 447px) 100vw, 447px\" \/><\/a><\/p>\n<hr \/>\n<p><strong><span style=\"font-size: 14pt;\">Cedi weakest in year may fall further<\/span><\/strong><\/p>\n<p>The Cedi depreciated further this week, sliding to just under 6.04 to the dollar from 6.02 at last Friday\u2019s close, its weakest level against the dollar in 12 months. A move by the Bank of Ghana to increase the amount of dollars on offer in its forward auction to $75m was not enough to arrest the Cedi\u2019s decline, which has been under pressure as a result of increased demand for the greenback amid a broader uptick in business activity as the economy recovers from the Covid-19 pandemic. We expect that backdrop to sustain the pressure on the Cedi over the next seven days.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Cedi-rate.jpg\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-473697\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Cedi-rate.jpg\" alt=\"\" width=\"428\" height=\"261\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Cedi-rate.jpg 428w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Cedi-rate-300x183.jpg 300w\" sizes=\"(max-width: 428px) 100vw, 428px\" \/><\/a><\/p>\n<hr \/>\n<p><strong><span style=\"font-size: 14pt;\">The Rand driven by the economic recovery<\/span><\/strong><\/p>\n<p>The Rand appreciated against the dollar this week, trading at 14.16 from 14.31 at the close of last week, after South Africa&#8217;s statistics agency showed the economy The country grew 1.2% in the second quarter, compared to 1% in the first three months of the year. This expansion has been supported by activities in the transport and communications sectors, as well as in agriculture. \u201cAgainst this backdrop, we expect the Rand to maintain current levels in the near term,\u201d said Aza.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Rand-rate.jpg\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-473698\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Rand-rate.jpg\" alt=\"\" width=\"439\" height=\"269\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Rand-rate.jpg 439w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Rand-rate-300x184.jpg 300w\" sizes=\"(max-width: 439px) 100vw, 439px\" \/><\/a><\/p>\n<hr \/>\n<p><strong><span style=\"font-size: 14pt;\">Pound weakens as Egypt\u2019s Covid cases increase<\/span><\/strong><br \/>\nThe Pound weakened marginally against the dollar this week, slipping to 15.72 from 15.70 at last week\u2019s close. Egypt\u2019s health ministry this week reported an increase in Covid-19 cases, warning of a potential hike in infections over the next two months. Also this week, Finance Minister Mohamed Maait said Egypt needs to relax regulations and simplify doing business in the country in order to spur private sector investment and boost growth to support the economy\u2019s recovery from the coronavirus pandemic. We expect the Pound to maintain current levels over the coming week.<\/p>\n<p><strong>Murega Mungai<\/strong><strong><br \/>\nTrading Desk Manager, AZA<\/strong><\/p>\n<hr \/>\n<p><span style=\"font-size: 14pt;\"><strong>Bond inflows to boost Kenyan Shilling<\/strong>\u00a0<\/span><\/p>\n<p>The Shilling depreciated against the dollar this week, edging lower to 110.11 from 109.99 at last week\u2019s close as Kenya\u2019s current account deficit widened to 5.4% of GDP in the 12 months to July compared to 4.9% a year earlier, according to provisional data from Kenya\u2019s central bank. Meantime, the central bank closed an offering of 75bn Shillings of infrastructure bonds this week, which tend to be popular with investors given that returns are tax exempt. We expect inflows from the infrastructure bonds to give the Shilling a reprieve from the recent pressure over the coming week.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Kenyan-Shilling.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-473699\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Kenyan-Shilling.jpg\" alt=\"\" width=\"445\" height=\"267\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Kenyan-Shilling.jpg 445w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Kenyan-Shilling-300x180.jpg 300w\" sizes=\"(max-width: 445px) 100vw, 445px\" \/><\/a><\/p>\n<hr \/>\n<p><strong><span style=\"font-size: 14pt;\">Dollar demand to keep pressure on Ugandan Shilling<\/span><\/strong><br \/>\nThe Shilling weakened against the dollar, trading at 3538 compared to 3528 at last week\u2019s close as the partial lifting of Uganda\u2019s Covid-19 lockdown spurred a resurgence in business activity that has increased importer demand for the greenback. We expect that dynamic to maintain pressure on the Shilling over the next seven days.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Ouganda-Shilling.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-473700\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Ouganda-Shilling.jpg\" alt=\"\" width=\"395\" height=\"243\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Ouganda-Shilling.jpg 395w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Ouganda-Shilling-300x185.jpg 300w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Ouganda-Shilling-356x220.jpg 356w\" sizes=\"(max-width: 395px) 100vw, 395px\" \/><\/a><\/p>\n<hr \/>\n<p><strong><span style=\"font-size: 14pt;\">IMF emergency cash to keep Tanzanian Shilling stable<\/span><\/strong><\/p>\n<p>The Shilling was little changed against the dollar, trading at 2318, in line with last Friday\u2019s close. The currency was supported by the IMF\u2019s approval this week of $567m in emergency funding to help ease the impact of the Covid-19 pandemic on Tanzania\u2019s economy. The funds will also be used to boost the country\u2019s healthcare system and address its urgent balance of payments needs, the IMF said. We expect the Shilling to remain stable over the coming week, as the IMF\u2019s financing support is balanced by demand for dollars for imports of consumer and capital goods including transport equipment, building and construction, machinery and oil.<\/p>\n<p><a href=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Tanzanie-Shilling.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-473701\" src=\"https:\/\/www.kapitalafrik.com\/wp-content\/uploads\/2021\/09\/Tanzanie-Shilling.jpg\" alt=\"\" width=\"437\" height=\"266\" srcset=\"https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Tanzanie-Shilling.jpg 437w, https:\/\/www.financialafrik.com\/en\/wp-content\/uploads\/2021\/09\/Tanzanie-Shilling-300x183.jpg 300w\" sizes=\"(max-width: 437px) 100vw, 437px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div>","protected":false},"excerpt":{"rendered":"<p>In this weekly column on African currencies, experts from AZA, the largest non-bank currency broker in Africa, with a transaction volume of more than $ 1 billion per year, analyze the evolution of currency fluctuations on the continent. &nbsp; &nbsp; Chad debt relief plan hinges on private creditor talks &nbsp; The IMF this week called<\/p>\n","protected":false},"author":527180,"featured_media":31869,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"aside","meta":{"pmpro_default_level":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"translated_post_url_fr":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[16158,12591,11996],"tags":[19915,965,12100,3310,2965,19916],"class_list":{"0":"post-473695","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-bank","8":"category-feature","9":"category-finance-en","10":"tag-african-currencies","11":"tag-cedi","12":"tag-imf-en","13":"tag-naira","14":"tag-rand","15":"tag-shilling","16":"post_format-post-format-aside","17":"pmpro-has-access"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>African currencies weekly insight (Aza) - Financial Afrik<\/title>\n<meta name=\"description\" content=\"Headed by Adama Wade and his team of 20 journalists, Kapital Afrik offers strategic and financial information to executives and managers. The aim of Kapital Afrik is to provide financial and political news, give priority to human entrepreneurial experiences, lend life to economic policies, givemeaning to statistics. Our \u201cexaggerated pretensions\u201d inspire us. We will strive, and gradually, to conceive, comfort and reach them. Three versions, three approaches and a global vision. The website is constantly on the news. The newsletter relays information every morning to executives, bankers, university financiers, students. The monthly edition analyzes the information and explains the setbacks. A single credo initiates our journalistic approach: information = actors, facts = a pluralistic vision. 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The aim of Kapital Afrik is to provide financial and political news, give priority to human entrepreneurial experiences, lend life to economic policies, givemeaning to statistics. Our \u201cexaggerated pretensions\u201d inspire us. We will strive, and gradually, to conceive, comfort and reach them. Three versions, three approaches and a global vision. The website is constantly on the news. The newsletter relays information every morning to executives, bankers, university financiers, students. The monthly edition analyzes the information and explains the setbacks. A single credo initiates our journalistic approach: information = actors, facts = a pluralistic vision. 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