Tag Archives: currency
currency: Latest News
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.
Dana Sanchez, 10:39 pm
The rand is becoming one of this year’s best trades. As it continues to strengthen, ratings agency Moody’s said the chance of a credit downgrade for South Africa is less than 50 percent. A credit ratings cut is likely if economic growth falls below South Africa’s estimated 0.2 percent this year. However some analysts say the rand’s rally could be short-lived and it could fall back down to 17 per dollar before the end of 2016.
Dana Sanchez, 4:03 pm
In the long run, Nigeria will likely regain the title as Africa’s largest economy, but “the momentum that took it there in the first place is now long gone,” an economist told Bloomberg. In the short term, ranking African economies is likely to be determined by exchange rate movements, not growth. South Africa’s economy is more diverse, while Nigeria depends almost completely on oil exports.
Dana Sanchez, 4:06 am
Some unregistered remittance firms have been detrimental to the Nigerian economy, the government says. They are accused of withholding dollars and paying local beneficiaries with naira. Just three remittance firms — all based in the U.S. — are allowed to continue operating in Nigeria. Nigeria receives more than $20 billion in remittances a year. The move by the central bank is arbitrary, inexplicable and detrimental to the Nigerian diaspora, said the CEO of a suspended firm.
Dana Sanchez, 4:18 pm
An acute dollar shortage is hurting the already struggling economy. Egypt depends on foreign investments and tourism for hard currency but those have suffered because of terror attacks and political unrest since the 2011 uprising. The IMF will ask for reforms as part of the loan agreement. These will likely include reduced government spending, a value-added tax and a more flexible currency exchange rate.
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