AFMI Weekly Insight March 15th 2019
15 March 2019
Mauritania Sells 7.36B Ouguiya of T-bills at March 12 Auction - Central Bank allots 2.56B ouguiya of 4-week securities at average 5.01%, 4.8B OF 13-week notes at 4.88%. Next auction scheduled for March 19, 12B ouguiya of 4-,13-,26-,50-week debt on offer. (Source: Bloomberg.com/africa)
Currency & Monetary Policy
Egypt's urban inflation jumps to 14.4 % in Feb - Egypt’s annual urban consumer price inflation increased to 14.4 percent in February from 12.7 percent in January, the Central Agency for Public Mobilization and Statistics(CAPMAS) said. Inflation had cooled to 12 percent in December after an increase in fuel, electricity and transportation prices last year had sent the rate up to a high of 17.7 percent in October. (Source: af.reuters.com)
Kenyan shilling holds steady against the dollar - The Kenyan shilling held steady against the dollar on Friday 15th March , due to demand from the energy sector being matched by hard currency inflows from offshore investors buying government debt, traders said. (Source: af.reuters.com)
Kenya court axes banking rates cap, suspends implementation for a year - A Kenyan court ruled on Thursday that a cap on commercial bank interest rates is unconstitutional, but judges suspended the ruling for 12 months to allow parliament to re-examine the law. Lawmakers capped interest rates at 4 percentage points above the central bank’s benchmark in 2016, saying they were concerned about high levels. But that has led to a private credit squeeze, as banks say it forced them to cut back on loans to high-risk groups. The ruling said the section of the banking act imposing the cap was unconstitutional because it only punished bankers and not customers for contravening the law. However, the ruling does not mean the rate cap will be lifted immediately. “Implementation is suspended for 12 months,” the central bank said in a tweet. (Source: af.reuters.com)
Benin readies for Its first foray into foreign bond markets - The West African country -- gross domestic product about $10 billion -- is readying a series of meetings with would-be takers for a first ever sale of Eurobonds, according to a person familiar with the matter. Citigroup Inc., Natixis SA and Societe Generale SA have been hired to organize the meetings, which will take place in Europe and the U.S. (Source: Bloomberg.com/africa)
Ivory Coast to raise up to $2.4 Billion in 2019 - Ivory Coast is seeking to raise up 1.4 trillion CFA francs ($2.4 billion) in 2019 on regional and international markets. The government intends to favor the regional market to raise fund for its development program. The country, the world’s top cocoa producer, in September approved a budget of 7.3 trillion CFA Francs for 2019. (Source: Bloomberg.com/africa)
African Domestic Bond Fund (ETF)
AfDB/AFMI℠ Bloomberg® African Bond Index (ABABI) 25% Capped
The ABABI 25% Capped is a rule - based weighted composite index of local Sovereign Indices (South Africa, Egypt, Nigeria, Kenya, Namibia, Botswana, Ghana, and Zambia).
County percentage composition to the index is capped at 25 %.
To be included in the index, a security must have at least 1 year remaining to maturity.