Foreign exchange market

Fears over Ukraine are making traders nervous. On Friday, US President Joe Biden said Moscow was preparing a pretext to justify a possible attack on Ukraine, which is hurting bitcoin. Bitcoin was trading around $40,500, a two-week low, after falling on Thursday. The world's largest and most well-known cryptocurrency is down 15.3% from its January 2 high of $47,989. Ether, the cryptocurrency tied to the ethereum blockchain network, fell 7.43% to $2,891.32, down $231.92 from its previous close.

For its part, the British pound is recovering against the euro and the dollar, galvanized by higher-than-expected UK inflation figures which are fueling expectations of future rate hikes by the Bank of England.

Cryptocurrencies

Tensions between Russia and the West over a potential invasion of Ukraine continue to influence risk appetite levels in financial markets. Thus, the dollar remains stable this Friday against the European currency. Around 11:30 a.m., the greenback was trading at 1.1367 dollars for one euro (-0.06%). The yen, a safe haven, gained ground against the dollar. The dollar slipped to a new two-week low of 114.78 yen in early Asian trade, and is down 0.5% since the start of the week.

Stock markets

At the end of the trading session of this Thursday, February 17, 2022, the market capitalization of the shares of the Regional Stock Exchange (BRVM) fell from 6,299.612 billion FCFA the day before to 6,387.963 billion FCFA. This sharp increase is caused by that of the indices, in particular the composite BRVM index which gained 1.40% to 212.21 points against 209.27 points the day before. As for the BRVM 10 index, it also gained 0.86% to 158.69 points against 157.34 points the day before. The market capitalization of the bond market also increased by 3.959 billion to 7510.692 billion FCFA against 7506.733 billion FCFA previously. As for the total value of transactions, it fell from 744.942 million FCFA the day before to 615.476 million FCFA on February 17.

Money Market

The Public Treasury of Burkina Faso carried out on Wednesday, February 16, 2022 on the WAEMU financial market an operation of assimilable treasury bills (BAT) with a duration of 182 days. This operation enabled him to raise the sum of 33 billion FCFA after auction. Investors whose bids are successful will end up with a weighted average return of 3.14%.

The State of Côte d'Ivoire raised, on Tuesday, February 15, 2022, the sum of 30 billion FCFA on the WAEMU financial market after its issuance by auction of assimilable treasury bonds (BAT) with a duration of 3 months. This fundraising will make it possible to cover the financing needs of its budget.

With more than 305% coverage rate on the issue of treasury bonds, Senegal received 35 billion FCFA on Friday, February 11, 2022.

In the CEMAC zone, the Congolese government intends to raise CDF 430 billion thanks to treasury bonds between February and March 2022. February 1), 3 issues of indexed Treasury Bonds with a three-month maturity and 3 indexed Treasury Bonds with a six-month maturity.

Raw materials

Oil continues to decline on Friday. WTI is trading below the symbolic $90 a barrel mark as the market clings to signs of easing in the Ukraine crisis and a return of Iran to the market. Around 11:00 GMT (12:00 CET), the price of a barrel of Brent from the North Sea for delivery in April lost 2.65% to 90.51 dollars. In New York, a barrel of West Texas Intermediate (WTI) for delivery in March, which is the last day of use as a benchmark contract, fell 2.64% to 89.34 dollars.

A fuel shortage was observed last week in Nigeria, in the administrative capital Abuja and in the economic capital Lagos. It has caused long queues at the few service stations that sell fuel and to remedy this situation, the country announces that it will supply its service stations.

During the week of February 14 to 19, 2022, the ton of copper observed an increase on the international market. According to a press release from the National Commission for Mercurial Prices of Export Products of the Ministry of Foreign Trade, the ton of copper is trading at 9825.80 USD against 9764.40 USD last week, an increase of 614 USD. 0.63% surplus. Tin and gold are selling at 43,377.50 vs. $43,065.00 and 59.17 vs. $59.10 respectively. Mining products such as the ton of cobalt, the gram of silver and tantalum, are experiencing price stability in the international market during the period indicated, trading respectively at 74,970 USD/T, 75 USD/gr and 327 USD/gr. For its part, the ton of Zinc observed a drop in price, selling at 3631.95 against 3647.10 USD during the week.

In Côte d'Ivoire, the Coton-Cashew Council launched the 2022 cashew nut marketing campaign. Production promises to be auspicious for the players and the Board forecasts a production of 1,040,000 tonnes in 2022. The compulsory farm gate price was set at CFAF 305 per kilogram. With regard to the compulsory floor price for the inland warehouse, it is set at 330 FCFA/kg and the compulsory prices for the factory warehouse and the port warehouse are respectively 359 FCFA and 389 FCFA per kilogram.

Companies

The Fund for African Export Development (FEDA) is investing in TND SA, a leading FMCG company in Mauritania. This investment will help diversify TND's business beyond importation to include integrated dairy and poultry manufacturing, with the aim of replacing imports with locally produced foods, positioning the Company to become a regional player. medium term.

Saudia Airlines and Huawei Tech Investment Saudi Arabia, have signed an agreement on the digital transition. This new partnership relates, among other things, to the launch of a dedicated application on Huawei's AppGallery platform. This agreement, signed between Saudia Airlines and Huawei Tech Investment Saudi Arabia, will allow the Saudi airline to integrate the holistic ecosystem set up by Huawei for users in the Middle East, Africa and beyond.

Air Liquide has just completed an excellent year by all performance criteria. The Group's 2021 revenue amounted to 23,335 million euros, up +8.2% on a comparable basis. The Group's published revenue increased by +13.9%. This strong sales growth in 2021 comes after a year 2020 marked by the Group's resilience in a particularly difficult health environment.

Telecom operator Orange has been accused by MTN of cyberattacks on its network from 2015 to 2017. The Liberian subsidiary of French telecoms group Orange will face a UK court on February 20.

Banks and Insurance

The World Bank published on Tuesday, February 15, 2022, its World Development Report 2022. The Report which examines the financial precariousness caused by the COVID-19 crisis and the lack of transparency of debt data, proposes priorities for action in the service of a fair recovery. The report calls for proactive management of troubled loans. Also, it is essential to ensure access to financial services for all to support the recovery from a historic pandemic.

The African Development Bank (AfDB) is committed to closing the financing gap of 42 billion dollars, or 24,150 billion FCfa for women entrepreneurs in Africa and unleashing their entrepreneurial capacity and their full potential. Thus, it launched a call for proposals for the transition of women entrepreneurs from the informal economy to the formal economy.

The African Development Bank has also approved a grant of 750,000 dollars, or about 430.12 million CFA francs for the benefit of the regional financial market of the West African Monetary Union (UMOA). The objective pursued is to carry out reforms which will deepen the market and make it more competitive and attractive for investors.

The West African Development Bank (BOAD) increases its capital by 1.5 billion dollars. The capital increase will be carried out in two tranches. An immediate first of 1 billion dollars will be subscribed in part by the Central Bank of West African States, whose 46.9% stake will be diluted accordingly, and 400 million by the eight regional shareholder countries (Benin , Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo). This operation will make it possible to inject, through a leverage effect, nearly 4 billion dollars into the economy of the eight countries of the region.

The European Investment Bank has released 62 million euros to support players in the technology, banking and agricultural sectors in Africa. Established in early 2022, EIB World is a new branch of the European Investment Bank solely dedicated to international partnerships and development financing outside the European Union.

Société Générale Côte d'Ivoire (SGCI) published its financial results for the year 2021 on February 10 on the website of the Regional Stock Exchange (BRVM). In 2021, SGCI's NBI increased by 15% compared to the same period of the previous year, reaching 189 billion FCFA. This performance is mainly due to the increase in the net interest margin (+15%), outstanding loans and other products (+16%).

Ecobank Senegal is committed to contributing to the implementation of the system initiated by the Central Bank of West African States (Bceao) to optimize access to financing for SMEs/SMIs. The bank signed an agreement with the support and supervision structures (Sae) for small and medium-sized enterprises last Thursday.

The Sunu Group received approval in Mauritania through a local company called Sunu Assurance Mauritanie SA. The approval signed by the Minister of Finance follows a request submitted last September by the leader of life insurance in the zone of the Inter-African Conference of Insurance Markets (CIMA). The approval allows the company Sunu Assurances Mauritanie SA to exercise the profession of insurer in the branches of life insurance, IARD and miscellaneous risks, throughout the national territory.

To support the insurance sector in the implementation of an effective mechanism for the fight against money laundering and the financing of terrorism (AML/CFT), the Insurance and Social Welfare Supervisory Authority (ACAPS) has just to publish a new guide on ML/FT typologies. This new document sets out the different types of money laundering and/or terrorist financing in life insurance, through a case analysis.

Financial crimes

The special prosecutor of the court of repression of economic and financial offenses announced the opening of an investigation against several personalities including the opponent Cellou Dalein Diallo. It relates to the sale, in 2002, of two planes and other property belonging to Air Guinée, the defunct national company. In addition to Cellou Dalein Diallo, Minister of Transport and Public Works at the time of the events, Cheick Amadou Camara, former Minister of Economy and Finance, Ibrahima Camara, director of the privatization unit of the Ministry of Economy and Finances and Mamadou Sylla, an economic operator, are also concerned.

With the rise of e-commerce and the covid-19 pandemic, social networks are increasingly becoming the theater of action for cybercrime. In an interview granted to lefaso.net, Julien Legma, head of service in charge of police collaboration within the central brigade for the fight against cybercrime (BCLCC) indicated that the overall damage amounted to more than 20 million CFA francs. More than 2,500 complaints were recorded in Burkina Faso in 2021. These acts of cybercrime are valued at more than one billion CFA francs.

Pastor Gody's Eye Quaicoo and his assistant Ama Béatrice Ouattara were convicted of aggravated fraud and money laundering. The two were tried in their absence, following a default judgment rendered by the Economic and Financial Pool of the High Court of Ouaga-1. The pastor was sentenced to five years in prison and a fine of 15.55 million FCFA.

Regional growth

The African Continental Free Trade Area (Zlecaf) currently registers 6 countries that are in the process of implementing it. These are Côte d'Ivoire, Senegal, Togo, Guinea, Niger and Burkina Faso.

Financial inclusion will be at the heart of the challenges of the 1st International Digital Finance Fair to be held in the Ivorian economic capital on March 28 and 29, 2022. A window and debates around innovative solutions are planned at this fair such as the implementation highlights fintechs, which will develop software offers that will be presented to partners and banks.

The eighth African Islamic Finance Summit will be held on March 23 in Banjul. The Summit will serve as a platform for African think tanks to discuss innovative financial inclusion strategies that would help further facilitate development in Africa.

A new Real Estate Investment Fair is coming to Abidjan on February 24 and 25, 2022. The Babimodays fair is a B to B Real Estate Investment Fair organized around the theme: What present and future developments in the real estate and territories. The show's main objective is to become a catalyst event for real estate ecosystems in the region.