The CBE held its deposit rate at 11.25% yesterday versus expectations for a 50bps hike, risking falling behind the curve. No clarity provided on FX policy amid growing deval speculation. Tighter policy would lay groundwork for orderly deval. Required...
Patrick Curran @ Tellimer Research 23 September 2022
Forex: Egypt goes against the tide and leaves rates on hold. Fixed Income: The belly of Kenya’s local currency bond curve is underperforming amid rising fiscal concerns. Macroeconomic: Gold miners are facing mounting costs.
Forex: Nigerian naira among the worst-performing African currencies in September. Fixed Income: Ghanaian Eurobonds tank as fears grow that the debt restructuring could include external debt. Macroeconomic: Hawkish hike sends tremors across markets.
Forex: Producer price inflation in Ghana surges to a multi-year high with a weaker cedi contributing. Fixed Income: Ghana is making progress towards securing a deal with the IMF. Macroeconomic: Fixed income markets are on edge ahead of the FOMC rate....
Forex: A rise in remittance inflows may alleviate some pressure on Egypt’s current account balance. Fixed Income: The cost to insure against a sovereign default in Africa has surged. Macroeconomic: Kenya backtracks on fuel subsidy.
Forex: Egypt signals openness to looser management of the pound. Fixed Income: Zambia lays out a plan for its complex debt restructuring. Macroeconomic: IMF programmes are becoming all the more important for heavily indebted African countries.