AFMI Weekly Insight February 1st 2019

1 février 2019


Currency & Monetary Policy 

Angola's central bank lowered its benchmark BNA rate by 75 basis points to 15.75 percent, saying the cut was supported by the decline in inflation during 2018 and a 10.71 percent contraction in the monetary base, the bank's operational variable, in the last 12 months. (Source: www.african-markets.com)

Kenya's central bank kept its Central Bank Rate steady at 9.0 percent and reiterated its view from November that inflation expectations remain well anchored and the economy is operating close to its potential. (Source: www.african-markets.com)

South Africa’s rand gained to its highest in nearly six months on Thursday as the United States central bank kept rates unchanged. It would hold off on cutting interest rates, fuelling global demand for risk assets. (Source: https://af.reuters.com/)

Borrowings

Egypt will issue new green bonds and Asian currency-denominated bonds for the first time in addition to dollar and Eurobonds in the fiscal year 2018/19, the finance ministry said on Monday. The Minister had received cabinet approval for $3 billion to $7 billion in foreign bond offers. Four international investment banks — Goldman Sachs, Citibank, JP Morgan and HSBC — have been selected by Egypt to issue the dollar-denominated bonds. Another four international investment banks — BNP Paribas, Natixis, Alex Bank San Paolo and Standard Chartered — will issue the Eurobonds, the statement said (Source: www.albawaba.com)

Market Infrastructure

Côte d'Ivoire’s SME Agency and the Regional Stock Exchange BRVM signed early this week a memorandum of understanding to support small and medium-sized companies with high potential in their quest for funding. The stock exchange has opened a window to facilitate access to capital. (Source: www.afrique.latribune.fr/)

Currencies

Source: Bloomberg®

Currnecies chart

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.

Source: Bloomberg®

Bond Index chart

African Domestic Bond Fund

Source:  Bloomberg®

Bond Index chart
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