Emerging Markets In-Focus: Kenya & South Africa

The Central Bank of Kenya (CBK) has kept rates on hold at 7%, noting that the previous cuts of 150bp this year alongside reductions in the cash reserve requirement ratio, was having the desired effect | The Kenyan shilling is trading slightly stronger this week mainly on the back of dollar weakness and and steady diaspora remittances The IMF has approved $4.3 billion in emergency support to South Africa to address the Covid-19 pandemic, the largest such disbursement to any country since the outbreak began | The news comes as the AfDB estimates that SA’s economic will shrink by as much as 6.6% this year

The coronavirus pandemic is having a dramatic effect on mobile money services in Africa, with Rwanda seeing a fivefold increase in volumes of weekly mobile money transfers during the lockdown | In Kenya, the central bank measured a 10% rise in the number of transfers | A survey by Cenfri, a SA think-thank, has found that consumers in Africa’s major economies have increased their use of online and mobile banking services by 30% To discuss how the above may affect your money transfer requirements, please contact your Currency Dealer at Heritage Pay on +44 (0) 207 117 2934.

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.