{"id":3844,"date":"2023-11-16T00:00:00","date_gmt":"2023-11-16T00:00:00","guid":{"rendered":"https:\/\/staging.azafinance.com\/2023\/11\/16\/nigerian-naira-begins-to-stabilize-rand-gains-strength-against-the-u-s-dollar\/"},"modified":"2024-05-17T14:01:23","modified_gmt":"2024-05-17T14:01:23","slug":"nigerian-naira-begins-to-stabilize-rand-gains-strength-against-the-u-s-dollar","status":"publish","type":"post","link":"https:\/\/azafinance.com\/nigerian-naira-begins-to-stabilize-rand-gains-strength-against-the-u-s-dollar\/","title":{"rendered":"Nigerian naira begins to stabilize; Rand gains strength against the U.S. dollar","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"<div class=\"infogram-embed\" data-id=\"1py2pke6vv5e2rb3y2gx7ky6eyby6n51nnk?live\" data-type=\"interactive\"><\/div><script>!function(e,t,s,i){var n=\"InfogramEmbeds\",o=e.getElementsByTagName(\"script\"),d=o[0],r=\/^http:\/.test(e.location)?\"http:\":\"https:\";if(\/^\\\/{2}\/.test(i)&&(i=r+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var a=e.createElement(\"script\");a.async=1,a.id=s,a.src=i,d.parentNode.insertBefore(a,d)}}(document,0,\"infogram-async\",\"\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\");<\/script>\n<h4><b>Nigerian Naira (\u20a6)\u00a0<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Ikenga Kalu<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The naira stabilized against the U.S. dollar on the unofficial FX window after appreciating from USD\/NGN 1150 to USD\/NGN 1145 over the previous week.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nigeria\u2019s monthly oil production grew by 1.47 million barrels to 41.867 million in October from 40.396 million barrels recorded in September. Despite this increase, the Nigerian government missed the target set by OPEC by about 12 million barrels.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nigeria derives about 90% of its dollar earnings from crude sales, and any shortfall in oil production greatly hampers the capacity of the Central Bank of Nigeria (CBN) to boost the strength of the currency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Market sentiments are still being driven by the CBN\u2019s drive to clear the FX backlog at the official window.<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This Day<\/span><a href=\"https:\/\/www.thisdaylive.com\/index.php\/2023\/11\/14\/nigeria-raises-oil-output-by-1-47m-barrels-still-25-short-of-meeting-opec-quota\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> \u2014 Nigeria Raises Oil Output by 1.47m Barrels, Still 25% Short of Meeting OPEC Quota<\/span><\/a><\/p>\n<h4><b>Ghanaian Cedi (GH\u00a2)<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Sakina Seidu<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The Ghanaian cedi continued to lose its value against the U.S. dollar, with current levels north of USD\/GHS 11.98.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The consumer price index (CPI) continued easing with a 290 basis point drop between September and October, with October Inflation calculated at 35.2%. Ghanaians look forward to Minister for Finance and Economic Planning Ken Ofori-Atta appearing before parliament to read the 2024 budget on November 15. Expectations are especially high with regard to a reduction in taxes and the absence of new taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cedi\u2019s value is expected to stabilize as we wait to hear from the finance minister on the 2024 budget.\u00a0<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/www.ghanaweb.com\/GhanaHomePage\/NewsArchive\/Bureaus-sell-1-at-GH-12-25-GH-11-54-on-BoG-interbank-as-of-November-15-1881197\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ghana web \u2014 Bureaus sell $1 at GH\u00a212.25, GH\u00a211.54 on BoG interbank as of November 15<\/span><\/a><\/p>\n<p><a href=\"https:\/\/www.myjoyonline.com\/october-2023-inflation-drops-to-35-2-percent\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Joy online \u2014 October 2023 inflation drops to 35.2%<\/span><\/a><\/p>\n<p><a href=\"https:\/\/citinewsroom.com\/2023\/11\/ofori-atta-to-present-2024-budget-on-wednesday\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">CNR \u2014 Ofori-Atta to present 2024 budget on Wednesday<\/span><\/a><\/p>\n<p><a href=\"https:\/\/thebftonline.com\/2023\/11\/14\/2024-budget-consolidate-economic-stability-reduce-operating-cost-businesses-urge-govt\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Business &amp; Finance Times \u2014 2024 BUDGET: Consolidate economic stability, reduce operating cost \u2013 businesses urge gov\u2019t<\/span><\/a><\/p>\n<h4><b>South African Rand (R)\u00a0<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Alex Barmuta<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This week, the rand strengthened by more than 2% against the U.S. dollar after U.S. inflation data was released on November 14. The currency pair moved from around USD\/ZAR 18.72 on Tuesday down to 18.11 on Wednesday.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The unemployment rate released on Tuesday indicated a marginal fall for the second consecutive quarter; moving from 32.6% in the second quarter of the year to 31.9% in the third quarter. Additionally, on November 15, year-on-year retail sales for September increased by 0.9%. Both adding to the strength of the rand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With Eskom increasing the amount of power cuts in the country, the rand is not expected to maintain its current strength. We expect the rand to trade around USD\/ZAR 18.40 next week.<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/www.reuters.com\/world\/africa\/south-african-retail-sales-rise-09-year-year-september-2023-11-15\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">REUTERS \u2013 South African retail sales rise 0.9% year on year in September<\/span><\/a><\/p>\n<p><a href=\"https:\/\/africa.cgtn.com\/south-africas-unemployment-rate-falls-ahead-of-elections\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">CGTN | AFRICA \u2013 South Africa\u2019s unemployment rate falls ahead of elections<\/span><\/a><\/p>\n<p><a href=\"https:\/\/www.reuters.com\/world\/africa\/south-african-rand-soars-over-2-after-us-inflation-data-2023-11-14\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">REUTERS \u2013 South African rand soars over 2% after U.S. inflation data<\/span><\/a><\/p>\n<h4><b>Egyptian Pound (EGP)<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Mitchell Diedrick<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The Egyptian pound traded marginally stronger on Friday and then rebounded to USD\/EGP 30.90 as of Wednesday this week. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Inflationary pressure seems to be easing marginally as annual core inflation for October 2023 was at 38.1% compared to 39.7% in September 2023. Prices of staple items such as grains have reduced while prices of other goods have remained stable.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The impact of the Israel-Hamas conflict on Egypt is yet to take full effect, with tourism only down marginally as well as imports of gas being reduced as a result of limited or no production from Israel. Other impacts are expected to be seen in terms of declining short-term investments and an increase in goods stuck at ports as a result of a foreign currency shortage.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/www.reuters.com\/world\/africa\/egypts-stumbling-economy-faces-new-pressures-gaza-crisis-2023-11-10\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Reuters \u2013 Egypt&#8217;s stumbling economy faces new pressures from Gaza crisis<\/span><\/a><\/p>\n<h4><b>Kenyan Shilling (KSh)<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Terry Karanja<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The shilling is currently trading at a fresh low of USD\/KES 151.85\u2013152.30, which is a drop from last week&#8217;s levels of USD\/KES 151.10\u2013152.10. The weakening shilling is being caused by the increased dollar demand from energy and manufacturing companies. Also, reduction in foreign exchange inflows, such as tourism inflows, has led to a further drop. Central Bank of Kenya Governor Kamau Thugge said the government is targeting to borrow more from the domestic market and, at the same time, mobilizing external funding from multilateral institutions, development partners and regional banks like the African Development Bank for cheaper loans and grants to fund its activities. We expect the shilling to drop as Kenya continues to manage the high cost of debt servicing.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Citizen digital \u2014 CBK Governor Kamau Thugge At Pains To Explain Performance Of Kenya Shilling<\/span><\/p>\n<h4><b>Ugandan Shilling (USh)<\/b><\/h4>\n<p><i><span style=\"font-weight: 400;\">Compiled by Yadhav Panday<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This Wednesday, November 15, USD\/UGX traded at 3,780, up 0.40% from last Friday. Looking ahead, we anticipate that the USD\/UGX will weaken as a result of Parliament&#8217;s approval of legislation granting the government exclusive rights to import and supply fuel and petroleum products in a deal to be implemented with the Dutch-registered Vitol Group.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government claims that the law, which is expected to go into effect on January 1, 2024, if signed by the president, will lower fuel prices by removing Kenyan middlemen from the fuel supply chain. Uganda currently imports 90% of its petroleum products via Kenya.<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/ugbusiness.com\/2023\/11\/uganda-economy\/parliament-passes-law-giving-government-exclusive-right-to-import-fuel\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ugbusiness \u2014 Parliament passes law giving government exclusive right to import fuel<\/span><\/a><\/p>\n<h4><b><div class=\"infogram-embed\" data-id=\"1py2pke6vv5e2rb3y2gx7ky6eyby6n51nnk?live\" data-type=\"interactive\"><\/div><script>!function(e,t,s,i){var n=\"InfogramEmbeds\",o=e.getElementsByTagName(\"script\"),d=o[0],r=\/^http:\/.test(e.location)?\"http:\":\"https:\";if(\/^\\\/{2}\/.test(i)&&(i=r+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var a=e.createElement(\"script\");a.async=1,a.id=s,a.src=i,d.parentNode.insertBefore(a,d)}}(document,0,\"infogram-async\",\"\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\");<\/script>West African CFA Franc Region (XOF)\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The Senegalese government received a satisfactory review from the International Monetary Fund (IMF) on fund-supported programs that had targets in place for June 2023. The review is still subject to approval from the IMF\u2019s board; however, once completed, this should allow for the release of further funding from the IMF\u2019s Extended Fund Facility and Extended Credit Facility. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Senegal has performed well in terms of economic growth this year and is expected to achieve growth for 2023 of around 4%. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Increasing investment and development programs like the Ndayane Port are likely to not only drive growth in Senegal but other neighboring regions with the prospect of greater intercontinental trade.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><b>Further reading:\u00a0\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/energycapitalpower.com\/senegal-imf-agreement-disbursement\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Energy Capital &amp; Power \u2013 Senegal Reaches Agreement with IMF for Increased Disbursement<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/a><\/p>\n<h4><b>Central African CFA Franc Region (XAF)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Congo-based truckers of cobalt and copper have finally called a halt to a strike which had been in effect since late October. The truckers had demanded a hazard pay of $700 on top of their salaries and had blocked exports of the commodities to major port destinations in South Africa, Tanzania and Mozambique.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With Congo being the third-largest producer of copper, a prolonged strike could have led to a global supply deficit and impacted prices on the global markets. The truckers, who were mostly of Tanzania and Zambian origin, could only be pacified by the intervention of the Tanzanian ambassador to Congo.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further reading:\u00a0\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.dailymaverick.co.za\/article\/2023-11-14-congos-copper-and-cobalt-trucks-on-move-as-driver-strike-ends\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Daily Maverick \u2014 Congo\u2019s Copper and Cobalt Trucks On Move as Driver Strike Ends<\/span><\/a><\/p>\n<p><em>Issued by AZA Finance, this Newsletter is produced as a service to our clients. It is prepared by our dealing professionals and is based on their understanding and interpretation of market events. AZA Finance cannot be held responsible for any losses of whatever nature sustained as a result of action taken based on comments contained in this publication.<\/em><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Nigerian Naira (\u20a6)\u00a0 Compiled by Ikenga Kalu The naira stabilized against the U.S. dollar on the unofficial FX window after appreciating from USD\/NGN 1150 to USD\/NGN 1145 over the previous week.\u00a0 Nigeria\u2019s monthly oil production grew by 1.47 million barrels to 41.867 million in October from 40.396 million barrels recorded in September. Despite this increase, [&hellip;]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":3845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19],"tags":[22,23,24,25,26,27,185,29,30,31,32,298,34,33,303,305],"class_list":["post-3844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fx-insights","tag-africa-foreign-exchange","tag-cairo","tag-cfa-franc","tag-dollars","tag-egypt","tag-egyptian-pound","tag-foreign-exchange","tag-fx","tag-fx-insights","tag-ghana","tag-ghana-cedi","tag-kenyan-shilling-rate","tag-naira","tag-rand-rate","tag-tanzanian-shilling-rate","tag-ugandan-shilling-rate"],"acf":[],"gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/posts\/3844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/comments?post=3844"}],"version-history":[{"count":0,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/posts\/3844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/media\/3845"}],"wp:attachment":[{"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/media?parent=3844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/categories?post=3844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/azafinance.com\/wp-json\/wp\/v2\/tags?post=3844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}