Banking

LAGOS (Capital Markets in Africa) – Nigeria’s central bank is in no mood to loosen its grip on the naira. Governor Godwin Emefiele said there was no reason to fret over a fall in foreign reserves to their lowest level in almost two years and vowed to continue defending the currency. “A marginal drop in reserves below $40 billion is not enough to create fears in any mind,” Emefiele said to reporters Tuesday in Abuja, the capital…

JOHANNESBURG(Capital Markets in Africa) – African Bank Holdings Ltd. plans to offer overdrafts as the South African lender adds income sources to draw more distance between itself and its collapsed former parent. “We are looking to relaunch our credit-card product next year and we are looking to launch an overdraft product as well,” Chief Executive Officer Basani Maluleke said by phone. “The diversification of our funding is also a critical success factor for the bank.” The lender’s…

NAIROBI (Capital Markets in Africa) – Kenya’s central bank cut its benchmark interest rate for the first time in 16 months as the removal of a cap on borrowing costs will make it easier for policy decisions to flow to help boost credit and economic growth. The Monetary Policy Committee lowered the rate to 8.5% from 9% to prop an economy “operating below its potential,” Governor Patrick Njoroge said in an emailed statement. The decision was in…

ACCRA (Capital Markets in Africa) – Ghana’s central bank held its benchmark interest rate for a fifth consecutive time as it sees economic growth momentum remaining strong and inflation staying inside its target range. The Monetary Policy Committee kept the rate at 16%, Governor Ernest Addison told reporters on Monday in the capital, Accra. That was in line with the forecast of all four economists in a Bloomberg survey. Key Insights While inflation dropped below…

NAIROBI (Capital Markers in Africa) – Kenya’s central bank increased its authorized and paid-up capital amid demands by the government that state-owned corporations remit more dividends to its coffers. The central bank strengthened its paid-up capital by 75% to 35 billion shillings ($345.3 million) in September from 20 billion shillings, having increased authorized capital to 50 billion shillings from 5 billion shillings, the lender said on its Twitter account. The statement follows acting Treasury Secretary Ukur…

LUSAKA(Capital Markers in Africa) – Zambia’s central bank and the government agreed that 4.4 billion kwacha ($310 million) the state owed the institution be converted into securities, Governor Denny Kalyalya said. The state borrowed the money from the Bank of Zambia at a time when the country was emerging from an electricity crisis and economic strain, and as elections in 2016 approached. The loans peaked at 5.3 billion kwacha in July 2016 but were marked as zero…

JOHANNESBURG(Capital Markers in Africa) – The South African Reserve Bank held its benchmark interest rate and signaled that it may only start easing again in the second half of next year. The Monetary Policy Committee voted to keep the repurchase rate at 6.5%, Governor Lesetja Kganyago told reporters Thursday in the capital, Pretoria. Three members of the five-person panel opted to maintain the rate while the rest preferred a 25 basis-point cut. The decision was in line…