Emerging Markets Update: Kenya, South Africa & Zimbabwe

Kenya The Central Bank of Kenya once again entered the market yesterday to support the recently depreciating Kenyan Shilling which touched a record low against the USD | The move saw Kenya drop 1% in early morning trading | The currency has come under pressure due to the high demand for dollars to pay for imports; exceeding supply of dollars which usually comes from tourism and commodity exports - both of which have been hit by the pandemic.

South Africa The South African Reserve Bank (SARB) left rates unchanged in their latest monetary policy announcement yesterday causing the Rand to strengthen by 2% against the USD | The central bank acknowledged risks remain to economic growth and consumer inflation

Zimbabwe Zimbabwean authorities are reportedly in discussions with several international investment banks to support a new stock exchange that will trade exclusively in foreign currency, Finance Minister Mthuli Ncube said. | The exchange, to be known as VFEX and based in the resort town of Victoria Falls, will open in “a couple of weeks,” said Zimbabwe Stock Exchange Chief Executive Officer Justin Bgoni. | Due to chronic problems with Zimbabwe's monetary policies, concerns remain about whether foreign investors will be able to repatriate their capital.

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.