22nd January 2024
Zimbabwe's Currency Stabilization Plans:
Zimbabwe plans to unveil measures to stabilize its currency, which has seen a 32% decline on the official market and over 40% on the parallel market this year. Potential actions include reforming the central bank's weekly foreign-exchange auction and increasing the supply of US dollars. Finance Minister Mthuli Ncube noted the government's intention to address volatility through fiscal and monetary policy measures, emphasizing the need to boost the supply of foreign currency amid high demand. The Zimbabwe dollar, reintroduced in 2019, has faced challenges, with the US dollar still dominant in 80% of economic transactions.
Senegal's Election Dynamics:
Senegal prepares for elections with 20 approved candidates after excluding Ousmane Sonko, a prominent opposition figure, whilst Prime Minister Amadou Ba, faces internal coalition divisions. The opposition, weakened by legal challenges, sees Bassirou Faye as a key contender, though he is also in jail. Sonko's exclusion may trigger unrest in the fast-growing economy, as he remains popular, especially among youth. The move comes after Sonko's six-month suspended prison sentence was upheld, making him ineligible. Other notable candidates include Habib Sy, Khalifa Sall, and Idrissa Seck.
Egypt Asserts Somalia's Security:
"Egypt will not allow anyone to threaten Somalia or affect its security," declared President Abdel Fattah al-Sisi, emphasizing Egypt's stance on Somalia amid tensions over Ethiopia's consideration of recognizing Somaliland's independence in a port access deal. The deal, not yet finalized, proposes Ethiopia's access to the port of Berbera in return for recognizing Somaliland's independence. Ethiopia asserts the deal is commercial, not an annexation attempt, but it has heightened regional tensions following continued Blue Nile dam disputes between the two.
Nigeria's Central Bank Finally Meet:
Nigeria's Central Bank, under new Governor Olayemi Cardoso, is set to convene its first Monetary Policy Committee (MPC) meeting since July, scheduled for February 26 and 27, according to a released timetable. The naira's recent decline, driven by ongoing liquidity challenges, and its parallel market rate around 1,350 to the dollar have raised anticipation for MPC guidance on interest rates. With six scheduled meetings throughout the year, including in March, May, July, September, and November, investors await insights on the central bank's stance amid fluctuating economic conditions and currency values. Analysts remain divided on the anticipated direction of interest rates.
