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Rand 'surprisingly firm' as global coronavirus cases surge
July 10, 2020--The rand plunged to a low of under R19/$ in early April when South Africa entered its first month of lockdown, but has been gradually gaining ground since then.
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Source: FIN24
Nigeria devalues naira to close gap with unofficial rates
July 8, 2020--The Central Bank of Nigeria has weakened the naira, responding to mounting pressure from external lenders, US dollar shortages and a slump in oil prices that has blown a hole in the country's budget.
Traders said that the central bank requested dealers to submit official bids at 380 to the dollar on Friday last week, according to Reuters.
The naira closed at 381 to the dollar on Tuesday, down about 5.5 per cent from the previous official rate of 360.
Nigeria last cut the value of its currency during the height of global market volatility in March, when the price of oil, the country's key export, collapsed. Up to that point, the exchange rate had held at around 307 for more than three years.
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Source: technocodex.com
Post COVID-19: Africa's growth stands to rebound to 3% in 2021, African Development Bank says in African Economic Outlook 2020 Supplement
July 7, 2020--Governments and development partners must respond in a more coordinated, targeted, and rapid manner to be effective in limiting impacts
An additional 49 million Africans could be pushed into extreme poverty by the pandemic and its aftermath; West and Central Africa stand to be worst hit.
Africa's economic growth could rebound in 2021, provided that governments manage the COVID-19 infection rate well, according to updated forecasts from the African Development Bank, released on Tuesday.
In a comprehensive socio-economic assessment of the pandemic's impact, the Bank said growth was now projected to rebound to 3% in 2021 from -3.4% in the worst-case scenario for 2020.
The predictions are contained in a supplement to the Bank's African Economic Outlook, which was released on 30 January. At the time, Africa's growth was forecast at 3.9% in 2020 and 4.1% in 2021.
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Source: afdb.org
Rand strengthens to below R17/$
July 2, 2020--The rand strengthened to below R17 against the US dollar on Thursday morning. Grim US jobless claims data could strengthen it even further.
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Source: FIN24
South Africa: First Quarter GDP Falls By 2 Percent As Recession Continues
June 30, 2020--South Africa's economy decreased by 2.0% in the first quarter of 2020, Statistics South Africa reported on Tuesday morning.
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Source: allafrica.com
Six Charts that Show Sub-Saharan Africa's Sharpest Economic Contraction Since the 1970s
June 29, 2020--The downward revision to the growth projections reflects the impact of domestic measures to contain the COVID-19 outbreak, as well as a weaker external environment, the IMF says in its latest Regional Economic Outlook Update: Sub-Saharan Africa. On average, per capita incomes across the region will fall by 5½ percent in 2020, back to levels last seen nearly a decade ago.
This will likely lead to more poverty and widen income inequality as lockdowns disproportionally affect informal sector workers and small- and medium-sized companies in the services sectors. The region’s outlook is subject to much uncertainty.
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Source: IMF
Africa: How Africa Can Take This Moment to End a 500-Years-Old Economic Model
June 25, 2020--Governments can take the opportunity of COVID-19 to change Africa's place in global economic structures, but it will take pan-African coordination.
African economies are facing a COVID-19 induced crisis. Global demand for raw materials has collapsed. International tourism has virtually halted. And even wealthier governments on the continent have been unable to provide the financial support necessary to prop up their struggling sectors.
In response, African finance ministers in April asked creditors to reduce their debt repayments. Several economic leaders on the continent have similarly called for a two-year debt freeze and urged the IMF and World Bank to provide debt relief for low income countries.
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Source: allafrica.com
Nigeria's Economy Faces Worst Recession in Four Decades, says New World Bank Report
June 25, 2020--The collapse in oil prices coupled with the COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession, the worst since the 1980s, according to the latest World Bank Nigeria Development Update (NDU).
The report, "Nigeria In Times of COVID-19: Laying Foundations for a Strong Recovery" estimates that Nigeria's economy would likely contract by 3.2% in 2020. This projection assumes that the spread of COVID-19 in Nigeria is contained by the third quarter of 2020. If the spread of the virus becomes more severe, the economy could contract further. Before COVID-19, the Nigerian economy was expected to grow by 2.1% in 2020, which means that the pandemic has led to a reduction in growth by more than five percentage points.
view the World Bank Report-Nigeria in Times of COVID-19: Laying Foundations for a Strong Recovery
Source: World Bank
South Africa's budget deficit, debt seen widening as virus hits economy
June 24, 2020--South Africa projected its budget deficit would widen to 14.6% of GDP in the current fiscal year, the highest since the end of apartheid.
President Cyril Ramaphosa announced a 500 billion rand coronavirus relief package in April, equivalent to 10% of South Africa’s GDP.
South Africa's budget deficit is projected to widen sharply while debt is seen ballooning significantly, the Treasury said on Wednesday, as the COVID-19 pandemic further stifles the recession-hit economy.
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Source: cnbc.com
Nigeria: With COVID-19, Nigeria's Balance of Trade Dwindles
June 21, 2020--For two consecutive quarters, Nigeria's trade balance has been in the deficit. The largest economy in Africa recorded a trade deficit to the tune of about N139billion in first quarter of 2020 with imports component of trade at about N4.22trillion while export stood at about N4.08trillion.
The National Bureau of Statistics has attributed the dismal performance to the negative impact of the COVID-19 pandemic on the nation's economy.
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Source: allafrica.com
