Emerging Markets In-Focus: Indonesia, Rwanda & South Africa
Indonesia President Joko Widodo has called on the nation to use the pandemic to reboot Southeast Asia’s biggest economy | USDIDR is trading 5% higher over the last 6 weeks with Mr Widodo looking to improve food and energy security | Indonesia has set a target of 4.5-5.5% for 2021 GDP growth with a budget deficit of 5.5%
The central bank left its benchmark interest rate unchanged at 4.5% keeping in place the record low lending level | The central bank is forecasting economic growth to pick up in H2 2020 however inflation is likely to be above initial expectations from April of 6%
South Africa USDZAR remains unmoved with negative local news countering the recent dollar weakness | Mining output in South Africa fell 28.2% in June versus the same month in 2019 with demand for the currency and domestic bonds only being supported by the high yield on offer compared to other markets
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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.