Africa Briefs
Kwanza weakens around 12%
Angola's central bank said it had sold 82.6 million euros (US$101 million) at an average rate of 248.77 kwanza per euro on Tuesday, a fall in the local currency's exchange rate of around 12% compared with a similar auction last week.
The southern African nation recently abandoned the kwanza's peg to the US dollar.
At an auction last week the central bank sold 83.6 million euros at around 221.26 kwanza per euro. – Nampa/Reuters
Zim says ‘bond notes’ to stay for now
Zimbabwe will not stop using "bond notes", a domestic quasi-currency, until the economy fully recovers, Finance Minister Patrick Chinamasa said yesterday.
In November 2016, the country started using bond notes in a bid to ease shortages of US dollars, the country's official currency since 2009.
The conditions needed to bring back a local currency include foreign currency reserves of more than three months, a lower budget deficit and higher exports and industrial production, Chinamasa said.
The bond notes, which are also in short supply, are pegged at par with the US dollar but trade at a discount on the black market. Yesterday US$1 was equivalent to US$1.25 in bond notes. – Nampa/Reuters
Kenya allows short-selling of shares to boost liquidity
Kenya has changed its market regulations to allow short-selling of shares by participants to boost liquidity on the bourse, market officials said.
Pension funds hold the bulk of shares and the lack of securities lending, borrowing and short-selling framework has curbed activity as the funds typically don't trade their holdings frequently.
The Nairobi Securities Exchange is a key entry point for foreign investors looking for exposure to the region's fast-growing economies. – Nampa/Reuters
Algeria signs deal with Vitol to cut import bill
Algeria's state energy company Sonatrach signed a deal with oil trader Vitol to send crude abroad for refining as the country seeks to reduce a record fuel import bill.
CEO Abdelmoumen Ould Kaddour said Sonatrach would pay processing costs before bringing refined fuel back to Algeria, and said it was also negotiating to buy shares in a foreign refinery, but did not give details.
The country, which needs to meet surging domestic demand, paid US$800 million for fuel imports in 2016, but last year the bill more than tripled to a record US$2.5 billion because of refining problems, a Sonatrach source said. – Nampa/Reuters
Angola's central bank said it had sold 82.6 million euros (US$101 million) at an average rate of 248.77 kwanza per euro on Tuesday, a fall in the local currency's exchange rate of around 12% compared with a similar auction last week.
The southern African nation recently abandoned the kwanza's peg to the US dollar.
At an auction last week the central bank sold 83.6 million euros at around 221.26 kwanza per euro. – Nampa/Reuters
Zim says ‘bond notes’ to stay for now
Zimbabwe will not stop using "bond notes", a domestic quasi-currency, until the economy fully recovers, Finance Minister Patrick Chinamasa said yesterday.
In November 2016, the country started using bond notes in a bid to ease shortages of US dollars, the country's official currency since 2009.
The conditions needed to bring back a local currency include foreign currency reserves of more than three months, a lower budget deficit and higher exports and industrial production, Chinamasa said.
The bond notes, which are also in short supply, are pegged at par with the US dollar but trade at a discount on the black market. Yesterday US$1 was equivalent to US$1.25 in bond notes. – Nampa/Reuters
Kenya allows short-selling of shares to boost liquidity
Kenya has changed its market regulations to allow short-selling of shares by participants to boost liquidity on the bourse, market officials said.
Pension funds hold the bulk of shares and the lack of securities lending, borrowing and short-selling framework has curbed activity as the funds typically don't trade their holdings frequently.
The Nairobi Securities Exchange is a key entry point for foreign investors looking for exposure to the region's fast-growing economies. – Nampa/Reuters
Algeria signs deal with Vitol to cut import bill
Algeria's state energy company Sonatrach signed a deal with oil trader Vitol to send crude abroad for refining as the country seeks to reduce a record fuel import bill.
CEO Abdelmoumen Ould Kaddour said Sonatrach would pay processing costs before bringing refined fuel back to Algeria, and said it was also negotiating to buy shares in a foreign refinery, but did not give details.
The country, which needs to meet surging domestic demand, paid US$800 million for fuel imports in 2016, but last year the bill more than tripled to a record US$2.5 billion because of refining problems, a Sonatrach source said. – Nampa/Reuters
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