Emerging Markets Update
In-focus: Kenya, South Africa & Nigeria Kenya The locusts currently swarming East Africa are the size of cities. They are threatening food supplies for millions in the region. Experts say the outbreak is the worst in recent memory and have largely been caused by an increased number of cyclones.The UN’s Food & Agriculture Organisation said last month ‘the number of locusts in East Africa could expand 500 times by June’ South Africa Lower forecasts from Moody’s Investors Services have hit the rand with investors believing the ratings firm is likely to downgrade South Africa to junk. Moody’s is currently the last of the three major ratings agencies to judge South Africa as investment grade. However, they’ve recently cut growth forecasts for 2020 from 1% to 0.7% contributing to the rand being the worst performing emerging currency this week. Nigeria The International Monetary Fund cut Nigeria’s economic growth estimates from 2.5% to 2% this year on the back of the plunging oil prices.Nigeria is Africa’s top oil producer however with the oil price under pressure due to the coronavirus outbreak, a major policy overhaul is required to reduce vulnerabilities. Oil prices have fallen by another 1% in the last 24 hours. Meanwhile, annual inflation has also risen to its highest level in nearly two years reaching 12.13% in January. To discuss how the above may affect your money transfer requirements, please contact your Currency Dealer at Heritage Pay on +44 (0) 203 858 7274.
None of the information in this article is, nor should be construed as financial advice. All foreign exchange transactions involve risk and you should always seek your own independent financial advice before entering into any foreign exchange transaction.