Exchange Market

The dollar that has regained some ground on the Japanese currency is still down 1.2% against the yen this week, its first week of decline since early March. Thus, the yen is on the verge of breaking a nine-week series of losses, due to weakening risk sentiment. The euro, meanwhile, fell 2.6% against the yen this week, its biggest decline since early March. The euro was at $1.0394, up 0.16%, holding above its 2017 low of $1.034. The weakness of the euro kept the Dollar Index at 104.63, just off its 20-year high of 104.92. The pound fell to $1.2221, hurt. The Russian ruble strengthened above 63 to the dollar in Moscow for the first time since early February 2020 and hit a new five-year high against the euro.

Bank Al-Maghrib delivered the main indicators on the financial and monetary evolution of Morocco in the week of April 28 to May 4, 2022. The institution chaired by Abdellatif Jouahri indicates that during this week, the dirham appreciated by 0.18% against the euro and depreciated by 0.33% against the US dollar. No auction operations (issuance of securities on the financial markets) were carried out on the foreign exchange market during this period.

Cryptomonnaies

All cryptoassets have been suffering for several weeks from the rise in the dollar favored by the rise in US interest rates. This Friday, bitcoin, the main cryptocurrency by its overall market value, gained 4.57% to $ 30,217.32 at 08:30 GMT against $ 25,401 in session the day before, its lowest level since December 2020. Ether, the second-largest cryptocurrency by capitalization, was trading at just over $2,000 on Friday after falling the previous day to $1,700, nearly 60% below its November peak.

Revolved by the adoption of a law on cryptocurrency by Bangui, the governor of the Bank of Central African States (BEAC) Abbas Mahamat Tolli wrote to the Central African Minister of Finance to put him under pressure. In this letter, he asks to convene the sessions of the extraordinary board of directors of the BEAC and the ministerial committee of the Central African Monetary Union (Umac) to examine the "implications" of the decision to adopt bitcoin as a legal tender.

Current markets

African stock markets are moving closer to integration. A total of 30 brokerage firms for cross-border trade have been selected for an ambitious project with a combined market capitalization of $1.25 trillion. These exchanges are the Johannesburg Stock Exchange, the Nairobi Stock Exchange, the Nigerian Stock Exchange, the Mauritius Stock Exchange, the Egyptian Stock Exchange, the Casablanca Stock Exchange and the Regional Stock Exchange (BRVM) bringing together eight West African countries — Benin, Burkina Faso, Côte d' Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.

Investors operating at the  regional stock exchange (BRVM) did not show a very great appetite for listed stocks at the end of the day. The total value of transactions was 47.574 million CFA francs against 783.976 million CFA francs the day before. Regarding the market capitalization of the equity market, it stood at 6473.853 billion FCFA against 6476.032 billion FCFA on May 11, 2022, a decrease of 2.179 billion FCFA. On the other hand, that of the bond market is stationary at 7698.209 billion FCFA. 

Monet Market

At the end of a simultaneous issue by auction of assimilable treasury bonds (BAT), Côte d'Ivoire obtained on Thursday, May 5, 2022 the sum of 52 billion FCFA at the level of the WAEMU financial market. With a duration of 182 days and support and resilience vouchers of 364 days, this operation recorded a bid of 52 billion FCFA.

At the end of its 91-day maturity BAT issue, the State of Guinea-Bissau raised on April 10, 2022 an amount of 10 billion FCFA (15 million euros). The purpose of the fundraising is to mobilize the savings of natural and legal persons in order to ensure the coverage of the financing needs of the budget of the State of Guinea-Bissau.

At the end of a simultaneous issue of 5-year and 7-year Treasury stimulus bonds (DSBs), Burkina Faso raises 40.091 billion FCFA. This operation, organized by UMOA-Titres, resulted in global bids from investors of 52.144 billion FCFA on an amount put up for auction by the issuer of 50 billion FCFA. This gives a coverage rate of the amount put out to tender of 104.29%.

Prime materials

Oil is increasing but fears of lower demand limit gains. Thus, oil prices extended their gains on Friday, but were heading for their first weekly loss in three weeks. Both benchmark contracts, however, were on track to post declines for the week, with Brent expected to fall nearly 3% and WTI nearly 2%.

Deground gold was down 0.4% to $1,874.89 an ounce, at 0252 GMT, while U.S. gold futures also slipped 0.4% to $1,874.80. Cash slipped 0.5% to $22.23 an ounce, platinum 1.6% to $948.00 and palladium 0.4% to $2,038.58.

Several airlines in Nigeria suspended operations on Monday, May 9, 2022. The sector is going through a difficult time because of the high prices of kerosene. Airlines are following the injunction of the Air Operators Association (AON), to suspend flights, due to the 100% increase in kerosene prices over the last 12 months. The price of aviation fuel (JetA1) has risen from N190 per litre to N700 currently.

The International Cotton Advisory Committee (ICAC) indicates that the 2021/2022 cotton campaign shows an impressive turnaround. Cotton areas in West Africa climbed 44%. The industry is also expected to perform well compared to the previous season, with areas, production and consumption all on the rise.

From May 1 to 15, 2022 in Togo, the prices per kilo of robusta healthy coffee and premium cocoa are experiencing a slight increase. The kilogram of Robusta Healthy Coffee is 830 CFA francs. Cocoa quality is 930 CFA francs per kilo, we learn in a statement from the coordination of the coffee-cocoa sector (CCFCC). These prices recorded a slight increase of 1.8% for coffee and 1.6% for cocoa compared to the target prices from 13 to 30 April.

Companies

The executives of TotalEnergies Marketing Senegal announced their results of activities at the end of the first quarter of 2022. Over the period, the company's tax-free revenue increased by 19%. This turnover stood at 104 billion FCFA against 87.409 billion FCFA at March 31, 2021. During the period under review, the total tonnage of hydrocarbons sold was down 4% to 180,600 tonnes compared to 188,500 tonnes in the first quarter of 2021.

Société Générale officials have published the group's results of activities at the end of the first quarter of 2022. The data show that the Group's net banking income, driven by very good momentum in all business lines, stood at €7.281 billion, up +16.6%. Retail Banking's France business posted strong growth.

The Norwegian company Empower New Energy has signed an agreement with Arab Medical Equipment Company (AMECO). This partnership will make it possible to build a 2.5 MW solar power plant. The solar power plant will be dedicated to supplying electricity to Ameco's facilities in Ramadan City. It will be built in several phases, the first of which is 500 kWp.

MTN Nigeria Plc and Mafab Communications ltd will roll out 5G from August 2022. The country will soon join Kenya, South Africa and Lesotho in the very closed circle of countries that have deployed this technology. The 5G network, once deployed, will bring many benefits and opportunities that will generate accelerated growth and a "smart" lifestyle in the country.

Banks and Insurance

The World Bank (WB) will disburse $295 million to increase access to energy and clean cooking for Chadian populations. An agreement was signed in this context in N'Djamena, the Chadian capital. The donation will increase access to energy from 6% to 30% within five years, or one million electrified households by 2027.

The WB also issued a statement announcing the disbursement, via the International Development Association (IDA), of $20 million to the Government of The Gambia. This grant is intended to support the Gambian government in fiscal management (debt, public investment and financial sustainability) and reform of the energy and telecommunications sectors. It will also serve to strengthen the transparency and governance of state-owned enterprises.

The West African Development Bank (BOAD) has been awarded a Ba1 rating by Moody's Investors Service (Moody's) for its $500 million issue of subordinated securities. BOAD's Baa1 rating reflects the bank's good capital adequacy, despite low asset quality and a limited degree of diversification.

The Bank also signed a Memorandum of Understanding on cooperation with the Ministry of Economy and Finance of the Kingdom of Morocco. A new commitment that will offer significant business and investment opportunities for Moroccan economic operators in the West African sub-region, in particular through better access to information around the pipeline of potential projects and the support of BOAD teams.

The Federation of Insurance Companies under African National Law (Fanaf) will hold its Scientific General Assembly from 23 to 25 May 2022 in Dakar at the King Fahd Convention Centre. This 46th edition is placed under the central theme of "Systemic Risks: Insurance and Resilience". Three high-level discussion panels will develop this eminently strategic theme for the insurance sector but also for the development of the African continent. These are the "Digital Challenges in the Age of Systemic Risks".

Financial Crimes

In a two-day workshop, senior anti-money laundering criminal prosecutors and investigations from the United States, the United Kingdom and Morocco met tuesday in Marrakech. The goal is to share successful strategies in prosecuting money laundering crimes. The workshop demonstrates the joint U.S.-Morocco commitment to fighting criminal organizations and blocking their access to illicit financing.

The Economic and Financial Pool of the Tribunal de Grande Instance Ouaga I acceded on May 3, 2022 to the release requested by lawyers Me Paulin Salembéré, Me Amedée Yeré, Me Thierry Michel Traoré, Me Hamidou Sawadogo and SCPA Karamabiri-Nyamba. The prosecutor of Faso at the TGI Ouaga-I had requested the referral of the file at the end of May because he did not have all the documents of the procedure. Drissa Ouattara and her co-defendants are now at large.

Governance

At the request of Romuald Wadagni, Minister of State in charge of Economy and Finance, an IMF evaluation mission intervened on benin's financial management. At the end of the work, the Technical Assistance Report-Assessment of The Transparency of Public Finances (IMF Report No. 22/111) of April 2022 indicates that Benin is performing better compared to countries with comparable income levels and institutional capacities that have been the subject of a Public Finance Transparency (ETF) assessment. Of the 36 principles across three pillars of the institution's Code of Transparency of Public Finances, almost half are at the satisfactory level (12 practices) or advanced (5 practices). The elementary level was assigned to 12 practices, while 5 practices were estimated to be non-existent. In view of benin's specific context, 2 principles of the Code, relating to historical revisions and natural resources, were considered non-applicable and therefore not evaluated, says the team led by Sailendra Pattanayak.

"The Banker" awarded on May 4, 2022, the prize called "Deal of the year" in the category "Sustainable Finance – Africa" to the Benin Eurobond show. This operation was dedicated to financing projects with a high impact on the United Nations Sustainable Development Goals (SDGs). The distinction rewards Benin's unique capacity for financial innovation, and positions Benin's Eurobond SDG operation among the major transactions carried out during 2022.

Regional growth

Stein will host the 17th Trade Fair of the Organization of Islamic Cooperation (OIC) from 13 to 19 June 2022. The meeting is organized by the Islamic Center for the Development of Trade (ICDT) and the International Center for Foreign Trade  of Senegal (CICES). This new edition will allow exhibitors from the 57 member countries to discuss ways and means to increase trade .   More than 10,000 professional visitors are expected on an area of 20,000 m2 including more than 8,000 m2 dedicated to  the exhibition. 

Commersioners meeting in Algiers on 11 and 12 May at the African Forum on Investment and Trade discussed the theme "Africa is the future". This edition allowed participants to discover the Continental Free Trade Area, its assets, its functioning and its role in boosting trade, especially during the post-Covid-19 period. The event allowed Algeria to highlight its non-hydrocarbon export capacities. The African Union (AU), the Arab League, the African Export-Import Bank, the Arab Agricultural Investment and Development Agency (OAIDA) and the Islamic Chamber of Commerce, Industry and Agriculture (CICIA) are among other organizations represented at this major event.

On the margins of the Summit of Heads of State, 15th session of the Conference of the Parties (COP15) to the United Nations Convention to Combat Desertification (UNCCD), Heads of State signed a commitment to combat desertification and drought. This is a call to action that comes in response to a stark warning from the United Nations Convention to Combat Desertification (UNCCD) that up to 40% of all ice-free land is already degraded, with disastrous consequences for climate, biodiversity and livelihoods.