Foreign Exchange

The dollar rose slightly Friday in a wait-and-see market. The greenback gave up 0.20 percent to $1.0225 per euro. The pound sterling depreciated against the U.S. dollar, the day after the Bank of England (BoE) decided to raise interest rates as it has never done in 27 years, in a move that could have a negative impact on the euro.interest rates at a 27-year high in an effort to quell runaway inflation, but it issued a stark warning about growth. Against the euro, the pound gained 0.1 per cent after falling 0.64 per cent on Thursday, its biggest one-day drop since June 14.

Cryptocurrencies

Luxembourg crypto institution and trading platform, Forex Suggest has suggested launching the crypto calculator for cost evaluation. The calculator will allow the latter to study "how much the crypto you used for purchases could be worth if you kept it" in terms of the recorded value of the crypto-currencies, according to the calculation platform. The trading platform informs that this instrument will also enable the crypto market to ride the waves of volatile headwinds.

Money markets

Côte d'Ivoire obtained on Tuesday, August 2, 2022 on the financial market of the WAEMU, a sum of 65 billion CFA francs to finance its budget. This was the result of a simultaneous auction of 91-day Treasury bills and 3 and 5-year Treasury stimulus bonds. The total amount of the bids received by the Ivorian State is 114.600 billion FCFA. This gives a coverage rate of the amount auctioned of 176.31%.

The Nigerian government issued CFAF 38.5 billion on the WAEMU financial market on Thursday, July 28, 2022, following an issue of 5- and 10-year Treasury recovery bonds (ODR). The sum of the bids gives 59.280 billion CFA francs out of an amount auctioned by the issuer of 35 billion CFA francs. This gives a coverage rate of 169.37% of the amount auctioned. After auction, the amount retained is 38.5 billion FCFA and the amount rejected is 20.780 billion FCFA. This gives an absorption rate of 64.95%.

Stock markets

The National Stock Exchange of India (NSE) and the Singapore Exchange (SGX) launched NSE IFSC-SGX Connect, a platform that will allow global investors to trade dollar-denominated Nifty futures contracts available on the Singapore Exchange. The new platform will provide global investors with real-time access to NSE IFSC market data.

The trading session of this Thursday, August 4, 2022 reveals that the main indicators of the Regional Securities Exchange (BRVM) are moving in a scattered row. The total value of transactions was established at 708.021 million FCFA against 498.293 million FCFA the day before. The capitalization of the equity market is down 38.831 billion. The bond market, on the other hand, was up 777 million. The composite index lost 0.62% to 208.35 points against 209.64 points the day before. For its part, the BRVM 10 index also recorded a decline of 0.41% to 162.59 points against 163.26 points the day before.

Commodities

Oil is treading water, weighed down by recession fears that are weighing on demand. The barrel of Brent North Sea for delivery in October grappled 0.48% to 94.57 dollars. U.S. West Texas Intermediate (WTI) for September delivery was up 0.38 percent at $88.88. However, Brent is still up more than 21% for the year and U.S. WTI is up more than 18%.

The latest forecast from Capital Economics shows a recovery in gold prices in 2023. But before then, gold is expected to fall further to $1,650 by the end of the year before beginning a recovery. Since peaking in March when gold was trading above $2,000 an ounce, the precious metal has retreated, falling about 11%. The decline has been driven by a stronger u.s. dollar and the federal Reserve's aggressive fight against inflation through its oversized interest rate hikes.

Ghana's parliament approved a $1.3 billion syndicated loan to finance the purchase of cocoa beans from producers for the 2022/23 cocoa season, which will begin in early October.

The most active cotton contract for January 2023 delivery gained 35 yuan (about $5.2) to close at 13,970 yuan a ton. On Wednesday, the total trading volume for six cotton futures contracts listed on the ZCE was 669,015 lots with a turnover of 48.46 billion yuan.

Companies

British oil firm BP reported its highest profit in 14 years in the second quarter of this year. It announced a profit of $8.45 billion for the second quarter. The company took the opportunity to increase its dividend by 10% to 6.006 cents per share, exceeding its previous forecast of a 4% annual increase.

Airtel Africa posted a 25% year-over-year increase in net income. However, on a sequential basis, net income fell 26%, hurt by higher costs and the call ban in Nigeria. Airtel Africa's revenue for the three months ended June 30 rose 13% year-on-year and 2.8% sequentially in reported currency to $1.257 billion, the company announced Thursday.

Banking and Insurance

The African Export-Import Bank (Afreximbank) and the Ivorian government are organizing a three-day trade fair dedicated to the creative and cultural industries from November 25 to 27 at the Sofitel. This meeting will allow African and diaspora actors in the music, film, fashion, video game and virtual reality industries to present their work to potential partners and buyers from around the world.

Pan-African bank Ecobank has officially launched "EcobankPay", the digital payment solution via cell phone. From now on, a customer can pay via EcobankPay in supermarkets, gas station stores, markets, pharmacies and street vendors. EcobankPay can be used in all 33 countries in which Ecobank operates.

The West African Development Bank (BOAD) is now relying on the Program for the Promotion of Private Investment in the Solar Energy Sector (PPIPS) to boost solar energy in West Africa. he PPIPS, with a budget of CFAF 165.958 billion, will mainly benefit Benin, Burkina Faso, Guinea Bissau, Mali, Niger and Togo.

At the end of the^first half of 2022, 8 Nigerian banks reported a profit of N176.11 billion despite macroeconomic challenges. They are FCMB Group Plc, Union Bank of Nigeria Plc, Jaiz Bank Plc, Wema Bank Plc, FBN Holdings Plc, Sterling Bank Plc, Ecobank Transnational Incorporated (ETI) and Unity Bank Plc.

The UMOA-Titres agency has published its 2021 ranking of Primary Dealers (SVTs) in the public securities market in the WAEMU zone. At the national level, Ecobank Benin is the market leader. For the year 2021, twenty (20) SVTs of the Union have been evaluated and classified by WAMU-Securities according to the issuers for which they have the quality of SVT. These are fifteen (15) banks and five (5) SGIs. On the Beninese market, Ecobank Benin is ranked first. It is followed in the top 3 by Orabank Togo and Coris bank Burkina. The Ecobank Group remains the leader among the Primary Dealers in 4 of the 7 countries surveyed. The exception was in Côte d'Ivoire with Société Ivoirienne de Banque at the top; in Guinea-Bissau with Coris Bank Burkina and in Niger with Orabank Togo.

Access Bank Ghana (ABG) has released its financial results for the six months ended June 30, 2022. The Ghanaian subsidiary of Nigerian banking group Access Bank has announced a 43% increase in profit for the first half of 2022. Total assets, loans and advances, and customer deposits increased by 26%, 28%, and 7.8% respectively.

The Ghana Exim Bank announced a $10 million financial package to boost the yam sector in Ghana. This initiative aims to increase shipments of the tuber in order to consolidate the country's position as the world's leading exporter since the end of its 2021/2022 fiscal year, ahead of heavyweights in the sector such as Jamaica and the USA.

The Ecobank Group's subsidiary in Côte d'Ivoire has been named "Best Trade Finance Bank" by Global Finance. The evaluation process is multi-stage and includes nominations from banks and financial service providers, as well as input from industry analysts, business leaders, technology experts and independent researchers. The jury also considered criteria such as: transaction volume, global reach, customer service, competitive pricing, and technological innovation.

Vista Bank Burkina has joined Proparco's Trade Finance operations guarantee program. This project aims to support the financing of imports of basic commodities in Burkina Faso through a EUR 10 million guarantee envelope on trade finance instruments issued by Vista Bank Burkina. The 2-year facility will enable Vista Bank Burkina to issue trade finance instruments for a total amount of EUR 10 million, with a guarantee from AFD Group of up to 100%.

Coris Bank International (CBI) Côte d'Ivoire and the Société de promotion et de participation pour la coopération économique (Proparco), a subsidiary of the French Development Agency (AFD), have signed an agreement for a guarantee line of 19 million euros. This signature was made between Mamadou Sanon, General Manager of Cbi-Ci and Fatoumata Sissoko-Sy, West Africa Regional Director of Proparco.

Global Credit Ratings announced that it has upgraded the rating of Ghanaian commercial bank, Fidelity Bank Ghana, from "A" to "A+". Also, the bank's "A1" short-term issuer ratings were affirmed with a stable outlook. GCR says the rating upgrade follows the banking institution's strong capitalization backed by substantial equity.

Kenyan insurtech startup Lami has raised USD 3.7 million to expand its insurance offering in Africa. This new fundraising brings the total amount raised to 5.5 million USD after the 1.8 million USD raised last year.

The BNP Paribas Group and the SUNU Group have concluded an agreement regarding the acquisition by the SUNU Group of 54.11% of the capital of the Banque Internationale pour le Commerce et l'Industrie du Sénégal (BICIS). The implementation of this agreement is subject to obtaining the regulatory approvals in force. The agreement is a continuation of a long-standing cooperation between the BNP Paribas Group and the SUNU Group in the field of bancassurance in sub-Saharan Africa.

Capital Express Assurance Limited announced that it has increased its total assets to N12.858 billion in the year ending December 31, 2021. The increase is estimated at 1.19% over the N11.95 billion recorded in the previous year. The announcement was made by the company's chairman, Otunba Ademola Adenuga at the 21st Annual General Meeting (AGM).

Financial crimes

The New York State Department of Financial Services (NYDFS) has fined Robinhood's crypto arm $30 million. It is accused of alleged violations of anti-money laundering, cybersecurity and consumer protection rules. As part of the settlement, Robinhood Crypto will also be required to retain an independent consultant to assess its compliance practices.

Regional growth

The world of the African financial industry is inviting itself to Lomé on November 28 and 29, 2022 on the sidelines of the Africa Financial Industry Summit (AFIS). The 2022 edition of AFIS will bring together leaders of banks, insurance companies, companies operating in mobile money, fintech, capital markets. The meeting will be attended by regulators, ministers of economy and finance, and representatives of major development institutions.

At the end of the Council of Ministers held last Wednesday, the Ivorian government announced that the 6th edition of the International Exhibition of Agriculture and Animal Resources in Abidjan (Sara), is postponed to November 2023. While it should be held in Abidjan from November 25 to December 4, 2022, the Sara has just been postponed to next year. The 6th edition will finally take place from Friday 3 to Sunday 12 November 2023.