Foreign exchange market

The FOREX did not seem surprised by the -robust- US figures and the Dollar rose only moderately against the Euro. While the pound is sinking, the dollar is showing a slight strengthening against the euro. The greenback lost steam as US bond yields fell on Tuesday, reducing the currency's appeal for yield as strong demand for a 30-year bond auction trumped any concerns about inflation. The euro returns to more than 1.20 dollars for the first time in a month and a half.

Cryptocurrency

After bitcoin's big decline last weekend, the cryptocurrency leader, which saw its price go up during the week, finds itself in tough competition. As the financial system begins to appropriate crypto-currencies, actions are multiplying in order to sanction users. After Turkey's decision on April 17 to ban all bitcoin transactions on its territory, rumors multiplied suggesting that India and especially the US Treasury Department were also going to tighten the constraints on the use of crypto -currencies. Nigeria, currently the 3rd user country of cryptocurrencies after the United States and Russia, is working on an evolution of regulations concerning cryptocurrencies.

In addition, most major central banks, including the Fed, Bank of England, European Central Bank and Chinese Monetary Institute, are evaluating the possibility of launching their own digital currencies. In addition, a task force launched by the Bank of England (BoE) and the Treasury of the United Kingdom will assess the possibility and interest of launching a British digital currency (cryptocurrency). The objective is to carry out transactions without going through banks.

Money Market

After three successful Treasury ODR issues with amounts varying between 22 and 40 billion FCFA, the State of Togo, through its General Directorate of Treasury and Public Accounts, made an exceptional issue ranging from 5 to 10 years. At the end of the auction, the UMOA-Titres agency listed 198.882 billion FCFA in overall bids from investors out of an amount put up for auction of 75 billion FCFA, i.e. a coverage rate of the amount put up for auction of 265.18%.

The General Directorate of Treasury and Public Accounting of Côte d'Ivoire raised, on April 15, 2021, a sum of 57 billion FCFA by auction of assimilable treasury bonds (BAT) with maturities of 91 and 182 days. This fundraising is intended to cover the financing needs of the State budget of Côte d'Ivoire.

For its part, Benin announces, for April 29, 2021, a simultaneous issuance of Recovery Bonds (ODR) with maturities of 7 years and 10 years. The sum sought is 30 billion CFA francs. Reimbursement of these bonds will take place on the first business day following the maturity date.

Stock market

In an interview with Financial Afrik, the Director General of the Regional Stock Exchange (BRVM), Dr. Edoh Kossi Amenounvé indicated that despite Covid-19, the regional market was the least volatile in the world; in connection with the various actions that have been taken in the face of this pandemic crisis.

The Bloomfield Investment Corporation stock market analysis report indicates that the BRVM 10 index ends the week with 128.40 points, an increase of 3.02% while the BRVM Composite index ends with 144.32 points, i.e. an increase of 1.76%. According to the pan-African rating agency specializing in credit risk assessment, based in Abidjan, the market capitalization of the equity market stands at 4,338 billion CFA francs.

Transactions in equity market value amounted to 3,627 million CFA francs at the end of the week, driven mainly by the "Public Services" (72%) and "Finances" (25%) sectors. The SMB CI share recorded the largest increase in the market with a gain of 33.86%, while the ORAGROUP TOGO share posted the largest drop with a drop of 7.07%. The value of the Nestlé Côte d'Ivoire share, which was 625 FCFA at the end of the trading session on April 21, 2021, up 6.8%, should increase further in the coming weeks. This result represents 1.5 times its market value.

Raw materials

After the US Department of Energy (EIA) announced a rise in crude inventories of about 600,000 barrels for the week ending April 16, oil contracts are falling. While inventories slightly exceeded the 436,000 barrel increase, Brent and WTI returned to prices more seen since March 18. Analysts point together the unexpected rise in crude inventories in the United States published Wednesday by the US Energy Information Agency (EIA) as the main bearish factor.

The Ivorian government announces that between October and the end of March, 300,000 tons of cocoa were ground thanks to the incentive measures developed for processors. This performance is attributed to efforts to promote cocoa processing and create more added value at the local level.

In addition, China announces the publication very soon of its own version of the Better Cotton Initiative (BCI) standards. This initiative is part of a comprehensive set of principles and criteria for delivering high quality products.

Banks and Insurance

Oragroup announced in a press release that it had performed well in 2020, despite a difficult context linked to the effects of the pandemic on the economy. While the total balance sheet showed an increase of 24% compared to the previous year, customer deposits of the entire Orabank network amounted to 2,124 billion and customer receivables to 1,584.8 billion. , i.e. increases of 17% and 16% respectively. Its total balance sheet stopped at more than 3,268.2 billion CFA francs. In total, the Group posted net banking income of 155.4 billion and consolidated net income of 9.4 billion. Remember that Oragroup has 166 agencies, more than 2,000 employees and 500,000 customers.

The results as of December 31, 2020 of the BOA Group listed on the Regional Stock Exchange (Brvm) were presented on Tuesday during a webinar, in which several senior executives and the country directors of the various subsidiaries took part. According to the results for the 2020 financial year, carried out in a context marked by the Covid-19 health crisis, the six listed banks of the Bank Of Africa (BOA) Group are posting resilient results.

The Ivorian Bank Company, a 75% subsidiary of the Moroccan group Attijariwafa Bank, achieved at the end of December 2020, a NBI of 74.4 billion FCFA. According to data communicated on the Regional Stock Exchange (BRVM) of Abidjan, the NBI is up by 3.6% against +9% in 2019, and up to +16.2% in 2018. This performance is also below the average of the last five years (+13.3%).

Bridge Bank Group Côte-d'Ivoire (Bbg-Ci) has obtained authorization from the Banking Commission of the West African Monetary Union (Umoa) for the installation in Senegal of a branch which will start its activities with an endowment in permanent resources set at 5,000 million. According to the explanations of the Banking Commission, the opening of a Bbg-Ci branch in Senegal is part of the implementation of its 2020-2025 strategic plan. It is registered under number K 0236 W on the Umoa list of banks.

In one of his contributions, published on Financial, Adama Diallo, Manager Statistics, Research and Business Development, deplores the weak presence of insurers in the financial markets of the Inter-African Conference on Insurance Markets (CIMA) zone. According to him, the financial market of the CIMA zone is made up of two economic zones: WAEMU in West Africa and CEMAC in Central Africa. But, the BRVM is the only stock exchange in the CIMA zone that works properly.

At Cameron, the new director of insurance, Antoni Marie Jubilaire Aboui Mendoua announces that he is tackling the major difficulties that are undermining the sector. Among other things, the promotion of the insurance sector, cleaning up the market, development of the legal and institutional framework, monitoring of companies in difficulty or under recovery, processing and dissemination of information and insurance regulations.

During the AMRAE Risk Management Meetings, the experts proposed a few strategies adapted to periods of crisis. During the exchanges placed on the theme: "What financing of risks by the insurance market, integrating risk management?", the experts insisted on the necessary dialogue with insurers, especially in this period.

Governance

The Angolan government announces the privatization of at least 113 companies this year, including the Bank of Commerce and Industry (BCI). The Secretary of State for Finance and Treasury, Ottoniel Santos said this Tuesday at the end of the meeting of the National Interministerial Commission for the Privatization Program 2019-2022 (PROPRIV) that in the first quarter, 40 companies will be privatized; in the second, 60 and in the third 13 companies.

Financial crimes

In a statement, the Dutch bank announced that he would pay a fine of 480 million euros to put an end to criminal proceedings. NBA Amro has agreed to put an end to the proceedings initiated by the Dutch courts, which denounce flaws in the fight against money laundering.

After the training of brigade commanders of the national gendarmerie and their deputies, the National Financial Information Processing Unit of Mali (CENTIF) organized a capacity building workshop for the investigation and prosecution authorities of the National Police. The objective is to inform them sufficiently about Law No. 2019-056, relating to Cybercrime which determines cybercriminal offenses and the procedures to be followed for their repression, adopted on December 05, 2019.

The Committee for Justice, Legislation and Human Rights at the Moroccan House of Representatives has unanimously adopted a bill relating to the fight against money laundering. This is bill n°12.18 amending and supplementing the Penal Code and law n°43.05. This new regulation is part of Morocco's efforts to strengthen the national judicial system in the fight against money laundering and the financing of terrorism. A plenary session is scheduled for Tuesday in the House of Representatives devoted to the vote of ready-made legislative texts, including that relating to money laundering.

Regional growth

The Regional Council for Public Savings and Financial Markets (CREPMF) organized a workshop on updating the texts to better secure the market. In accordance with the 2014-2021 Strategic Plan initiated by the CREPMF and approved in 2013 by all the States of the West African monetary zone, the actors are working to improve governance and deepen the Regional Financial Market, but also and above all, to strengthen the security of investors and savers.

In its report on monetary policy in Umoa, the Central Bank of West African States (Bceao) reveals that budget revenues and donations rebounded by 4.1% while the budget deficit of UEMOA, including grants and commitments, fell back to represent 5.7% of Gross Domestic Product (GDP) in 2020. Grants recorded an increase of 956.4 billion CFA francs or 60.4%, of which the impact was mitigated by the decline in budget revenue of FCfa 327.4 billion.

Driven by Mali and Côte d'Ivoire, the outstanding amount of loans granted by the decentralized financial services of the West African Monetary Union (UMOA) in 2019 reached 12.1%, according to the Central Bank of the States of West Africa (BCEAO). The overall outstanding balance of loans from decentralized financial services (SFD) of the Union reached 1662.2 billion FCFA, reflecting a growth of 12.1% compared to 2019. Mali and Côte d'Ivoire are the two countries which recorded the largest increases.