Tag Archives: currency
currency: Latest News
Dana Sanchez, 5:07 pm
Bitcoin surged today above $1,400. Its most recent rise is attributed to strong demand in Japan, where the digital currency is designated legal tender. Most African banks charge 10-to-19% on remittances. Bitcoin has started taking a bite out of the $4B trade from international transfers to Africa, but it’s still moving slowly. The U.S. Securities and Exchange Commission is credited with helping boost the value of bitcoin. The Winklevoss brothers — disputed founders of Facebook — applied to list a proposed bitcoin-tracking exchange-traded fund, and were initially rejected. The SEC is reconsidering.
Dana Sanchez, 2:29 pm
Prices rose even faster than in December, when inflation was 24.3 percent — the highest since January 2011 when the Arab Spring uprising was at its height. Food prices have gone up more than other goods, rising by 38.6 percent year on year. Tourism, one the main sources of foreign currency, has been hit hard by jihadist insurgency. The number of tourists visiting Egypt in 2016 was 46 percent less than 2015. This decline is attributed to Russian and British flights being suspended following the Metrojet flight crash in the Sinai.
Staff, 1:01 am
Overall, capital importation into Nigeria fell 47 percent in 2016. Foreign direct investment flows were way up but portfolio investments were way down, deterred by the recession and the currency. Nigeria in 2016 imported the bulk of its capital from Britain, the U.S. and Netherlands, with the telecoms, banking and oil sectors the main beneficiaries. Nigeria’s stock market fell 6.2 percent in 2016 while the naira lost a third of its official value against the dollar. In 2017, stocks continue to fall, down 3.1 percent so far.
Staff, 12:17 pm
Nigeria should be witnessing major investment into its commercial property industry, given its large economy relative to the rest of the continent, its population, which is more than 184 million people and its general development potential. Yet its reliance on oil and its volatile currency had hindered investment. South African investment groups invested in Eastern Europe at the expense of opportunities closer to home, to the tune of around $1.5 billion in 2016. This was more than the total investment volumes recorded in Kenya, Nigeria and Ghana for the past five years or so.
Staff, 5:36 pm
Poor power supply is partly to blame for the Nigerian government’s inability to build a robust auto industry. That leaves vehicle imports as one of the only ways to meet local demand. Nigeria’s auto market is worth over $4 billion a year, but it does not translate into anything meaningful, a stakeholder said. Starting in 2015, stiff new tariffs were levied on new and used Nigerian vehicle imports. Imports fell more than 50 percent.
Kurt Davis Jr., 8:15 am AFKI Original
Mozambique had a tough 2016. The country is unable to pay its debt until gas revenues are available after 2021. Public debt is expected to be near 130 percent of GDP by the end of 2016. The IMF continues to help Mozambique negotiate with creditors – a bright spot considering the IMF suspended aid to the country in April after evidence of $2 billion in hidden loans came to light. This “hidden debt” by state-owned firms has destroyed creditors’ trust in Mozambique.
Dana Sanchez, 11:17 am
Hyperinflation in 2008 had Zimbabweans paying 50 billion Zimbabwean dollars for an egg and 100 trillion dollars for a weekly bus ticket. The U.S. dollar has been Zimbabwe’s main currency since 2009 but those are in short supply. Now it’s deja vu all over again as the Zimbabwe government forces bond notes into circulation, a move many feel is a ploy to bring back the Zimbabwean dollar. The central bank promised to keep a lid on issuing bond notes, insisting they are not an official currency and will have no value outside of Zimbabwe. The first test will be in the informal foreign exchange markets on the streets.
Dana Sanchez, 11:22 am
It’s cheaper to produce tomato paste in China and export it to Nigeria and other African markets than to produce it locally, according to Nigeria’s No. 1 tomato paste processor. Tomato paste is used widely in Nigerian dishes from jollof rice to soups. Eric Umeofia, CEO of Erisco Foods, said he plans to exit the Nigerian market. The news came as a shock to Nigerians. Erisco has the largest tomato processing plant in Nigeria and the fourth largest in the world.
Dana Sanchez, 11:12 am
Africa’s largest lender, Johannesburg-based Standard Bank this year made $2 billion in loan commitments to Chinese-owned development projects in Africa, and it plans to help Chinese entrepreneurs seek African investment opportunities in areas such as retail. Access to credit remains a challenge for many Africans. Standard Bank says its opportunities lie in working “on the yuan’s internationalization and helping Chinese companies transform from … contractors to investors.”
Dana Sanchez, 11:00 pm
A year ago, the national airline of the United Arab Emirates was flying high on increased business activity between Africa and Asia. It had 27 African destinations and plans to link to almost every African market. Africa accounted for 10 percent of Emirates global passengers and revenue. Now Emirates is cutting back flights to Nigeria and more countries could have routes cut as economic challenges such as fuel scarcity and unfavorable exchange rates hurt profits.
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