Tag Archives: Dollar
Dollar: Latest News
Kurt Davis Jr., 8:02 am AFKI Original
The economies of sub-Saharan Africa have felt the pain of 2015 and 2016, and African currencies have experienced volatility as a result. The year 2017 has been a partial year of recovery or adjustment, but there remain a selection of African economies that continue to experience issues with their currencies as a reflection of the problems that are affecting them at home. Here we take a look at four prime examples.
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.
Dana Sanchez, 11:42 am
With 13.5M people, Guangzhou, China, is one of the most populous metropolitan areas on Earth, and it’s though to have Asia’s largest African population. Formerly known as Canton, the city was home at one point to up to 200,000 Africans, although that number has been disputed. One trend seems undisputed. The African population in Guangzhou is shrinking. Africans are leaving for greener pastures elsewhere in Asia.
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, 11:31 am
Traders in East Africa have to convert local currencies to the U.S. dollar before making transactions, then convert the currency back to their national currency. In the process, they pay exchange-related costs at least twice at a time when African economies are struggling with U.S. dollar shortages. About 43 percent of Africans are involved in some form of informal cross-border trade, with women representing the lion’s share – around 75 percent.
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.
Staff, 12:01 am
Mugabe has resisted a switch to the rand as this would cede Zimbabwe’s financial authority to South Africa but he may be running out of options. Zimbabwe’s reserve bank governor and finance minister said that joining the Common Monetary Area — a monetary union linking SA, Namibia, Lesotho and Swaziland — is the only solution to Zimbabwe’s economic problems. Though their currencies have different names, they are all pegged to the rand and fall under the SA Reserve Bank’s monetary policy direction.
Staff, 7:56 am
The Central Bank of Nigeria said that it would move to a purely market-driven currency system to help Africa’s biggest economy cope with the effects of the global oil price slump in the past couple of years. In the short term, the move is expected to be painful. Long term however, the naira floating freely will likely be a net positive to the country’s economy. Devaluing the naira is a step towards helping to fix Nigeria’s stalling economy, but it won’t solve all its problems.
Staff, 12:03 am
Nigerians are taking to Twitter to bring their economy back from the brink using hashtags #BuyNaijaToGrowTheNaira and #BuyNigerian to promote local crafts and products. The hope is that it will bring a much-needed boost to the nation’s economy. Twitter users are showcasing everything from “Made in Nigeria” sunglasses to buses and beds. The oil slump has led to massive cuts in foreign currency. Imported goods are quickly becoming unaffordable.
Dana Sanchez, 9:44 am
South Africa’s currency may have been crushed by politics. Rising inflation and weak fundamentals create a conundrum for the South African Reserve Bank, which sees itself as an institutional bulwark against weak economic governance. If it keeps rates low, inflation could rise and the rand will continue to devalue. If it raises rates it risks stifling growth. One possibility is that the central bank could intervene directly as several other central banks have done.
- Real Estate