Tag Archives: African currencies
African currencies: 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.
Kevin Mwanza, 5:52 am
The Egyptian pound was devalued massively on Thursday to 13 pounds against the U.S. dollar after the country’s central bank adopted a floating unit policy in an attempt to stabilize the economy, which has been hurt by a shortage of greenbacks. The Egyptian pound shed a third of its value after the move to unpeg it from the 8.8 per dollar set in March. It has since plummeted more than 50 percent.
Kevin Mwanza, 4:58 am
Atlas Mara, an Africa-focused investment vehicle set up by ex- Barclays CEO Bob Diamond, has experienced hard times in its efforts to become the leading financial player in sub-Saharan Africa and capitalize on the continent’s vast unbanked population. Diamond set up the investment company in 2013 to buy African banks but has since faced a number of hurdles due to the fall in global commodity prices and depreciating currencies. While Altas Mara has spread to seven countries across Africa,
Staff, 6:23 am
South Africa’s MTN Group Ltd., Africa’s largest telecommunications company, attributed a heavy loss in the first half of the year to a “perfect storm” that included a massive regulatory fine in Nigeria and unfavorable currency movements in many of its markets. Generally weak macroeconomics, hyperinflation in Syria and Sudan, impairments in South Sudan as well as losses from investments in internet and tower companies contributed to the company’s first ever half-year loss.
Kevin Mwanza, 3:13 am
The South African rand gained on Tuesday after Finance Minister Pravin Gordhan dismissed rumors that started over the weekend that he could be arrested by the country’s anti-corruption elite police. Gordhan is being investigated by the elite police unit known as the Hawks for his role in the creation of a covert surveillance unit in the revenue services during his time as head of the agency.
Staff, 4:22 am
Clover, a South African beverage line responsible for the production of Tropika fruit juice, says it is withdrawing future investments in the Nigerian market. Clover becomes the second South African country in two weeks to toe this line. In its fiscal year end profit/loss posting, the company said the financial crisis in Nigeria is to blame for its withdrawal from the Nigerian market.
Kevin Mwanza, 7:31 am
UK-based international bank Barclays has said it plans to pull out of Africa by reducing its majority stake in Absa, The Wall Street Journal reported. The bank which owns 62 percent of Barclays Africa, while Absa owns the rest, said its executives had reached a decision to sell some of its shares in the group that operates in several African countries including South Africa, Kenya and Botswana.
Kevin Mwanza, 5:07 am
On Monday, the South African rand plunged to a record low as investors worried about the economy, while the Nigerian naira sunk to a new all-time low on the black market after the central bank halted dollar sales to non-bank foreign exchange operators. The two countries are Africa’s biggest economies and the drop in their currencies early in the year point to a tougher 2016.
Kevin Mwanza, 2:01 am
2015 was a tough year for many sub-Saharan Africa currencies mainly due to a falling commodity prices on the international market that left many countries struggling with rising inflation and depreciating local units. Some experts have even said that Africa’s booming years that was driven by rising prices of its export products
Kevin Mwanza, 8:33 am
Africa’s largest company by market value, Napsers Ltd., plans to increase its investment in U.S.-based tech startups to benefit from a stronger greenback if the U.S. Fed hikes interest rates. Multinational companies, such as Naspers, are moving to cover their exposure in frontier and emerging markets, where cost of operations are likely to increase as local currencies tumble against a globally stronger dollar
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