Banking

RABAT (Capital Markets in Africa) – The central bank hasn’t budged since 2016 despite taking an increasingly dim view of the country’s economy after a poor harvest and still-weak demand from its key markets in Europe. Meanwhile, consumer prices have recovered from a bout of deflation to exceed projections for the year. Policymakers are likely to keep their benchmark interest rate at a record-low 2.25% again at a quarterly meeting on Tuesday. The pause will probably last…

JOHANNESBURG (Capital Markets in Africa) – South African banks are urging clients to use digital channels as the industry prepares for what could be its biggest strike since 1920. “Banks will be operating as usual on the day,” the Banking Association South Africa said in an emailed statement on Monday. Lenders “are taking the necessary precautions to minimize disruption” related to the proposed protest action on Friday by the South African Society of Bank Officials and the…

NEW YORK (Capital Markets in Africa) – High-frequency traders haven’t taken over Treasuries, according to data just released by a senior U.S. government debt manager, a sign banks still call the shots in the world’s largest bond market. These automated market makers have bought and sold about $140 billion of Treasuries a day since April, 20% of total volume, Deputy Treasury Secretary Justin Muzinich said Monday during a speech in New York. These companies — the U.S….

LONDON (Capital Markets in Africa) – Facebook Inc. is once again defending Libra — this time against fears that the envisioned cryptocurrency could replace sovereign currencies from the U.S. dollar to the Euro and threaten central banks’ control over money creation. David Marcus, the executive leading the project, posted a series of tweets the same day members of the Libra Association met with regulators convened by a G-7 working group in Switzerland. He argued that creating Libra isn’t…

LAGOS (Capital Markets in Africa) – The New Development Bank, the multilateral development institution set up by members of the BRICS group of countries, has extended its first loan in local currency by providing 7 billion rand ($477 million) for South African roads. The 15-year loan to the South African National Roads Agency SOC Ltd. will be guaranteed by the country’s government and still needs the approval of the transport and finance ministers. “The loan…

NAIROBI (Capital Markets in Africa) – Equity Group Holdings Plc plans to buy a lender in the Democratic Republic of Congo, its second acquisition in five months, as part of the Kenyan bank’s strategy to expand across Africa. Directors agreed to enter a “non-binding term sheet with certain shareholders of Banque Commerciale du Congo for the purchase for cash of a controlling stake in BCDC with a view to eventually amalgamating the business of BCDC with that of…