11/29/2022 0 Comments Download distressed fx android![]() However, towards the beginning of February we expect to see a reversal towards 15.50, based on technical analysis and the upcoming budget speech. We expect the Rand to strengthen towards 15.15 on that back of increased risk appetite in the global economy in the coming week. Meantime, the People’s Bank of China signalled further support for the Chinese economy-a potential boost for South African exports and South Africa’s economy at large. The decline followed a spike in annual consumer price inflation to 5.9% in December, the highest annual increase since March 2017, driven in part by higher petrol and diesel prices amid rising crude costs and supply constraints in the market. The Rand depreciated against the dollar this week, sliding to 15.52, having strengthened to 15.27 towards the end of last week. We expect the currency to range between 6.20 and 6.25 in the near term. The currency was last at 6.14 levels, recovering on the back of higher gold and oil prices and sustained Bank of Ghana interventions. Inflation also continues to weigh, with fuel prices 3% higher than at the start of the year. The Cedi sank to as low as 6.253 this week, from 6.189 at last week’s close, as Ghana’s dollar-denominated bonds dropped further into distressed territory, with 13 of the nation’s14 dollar bonds now trading with spreads wider than 1,000bps as investors fret about the country’s ability to re-finance its debt when the US Federal Reserve starts raising benchmark rates. Given current levels, we expect the Naira to remain stable in the coming weeks. The Nigerian senate this week removed a clause in the country’s electoral act amendment bill that would have made direct primaries a mandatory requirement for political parties, a proposal that President Muhammadu Buhari had shot down in December.īuhari had argued that it should be up to political parties if they want to elect their candidates via direct or indirect primaries. Inflation also climbed for the first time in eight months, rising to 16.63% in December from 15.5% a month earlier. Nigeria’s FX reserves fell to $40.4bn from $40.5bn, resuming the downward trend having last week briefly arrested six straight weeks of declines. The Naira held firm against the dollar this week, trading at 570 on the unofficial market. ![]()
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