Foreign Exchange Market

The Indian rupee had its worst week in five on Friday as risk sentiment was hurt by the Chinese yuan weakening above 7 per dollar to cross a key psychological level for the first time in two years. The partially convertible rupee closed down 0.1 percent at 79.74 per dollar. For the week, the rupee was down 0.2 percent, its biggest loss since the week ended Aug. 12.

The British pound was melting against the dollar on Friday, losing 0.77 percent to $1.1379 at around 0920 GMT (11:20 a.m. CET), after sinking to $1.1351, a level not seen in 37 years. Since the beginning of the year, the British currency has fallen by about 15% against the greenback. Meanwhile, the dollar index climbed 0.4 percent to 110.13, not far from its two-decade high of 110.79 reached earlier this month.

Sierra Leone's central bank announced Thursday that it would extend the concurrent circulation of its old and new currencies until the end of March 2023. The transition period from July 1 to September 30, 2022, during which the new and old leone are legal tender, "is hereby extended to March 31, 2023," the institution said in a statement posted on social networks, without providing any explanation.

Cryptocurrencies

Ethereum's volume and number of futures transactions surpass Bitcoin before the merger. According to a new report from Tom Rogers, head of research at ETC Group, last month was the "first time since records began that Ethereum's futures trading volume exceeded Bitcoin, at $1.07 [trillion] on the month." Data provided by Bitinfocharts shows that on September 4, the total number of transactions on Ethereum was 459,451 compared to 421,019 on Bitcoin. Over the past week, Ether's price has risen by 7% compared to a 4% increase for BTC, highlighting the fact that transaction volumes tend to correlate with price movements.

Money markets

CFAF 45.618 billion entered the coffers of the Senegalese Treasury on Friday 9 September 2022. This was the result of a simultaneous issuance of 364-day support and resilience bonds (BSR) and 7-year Treasury stimulus bonds. According to the report established by WAMU-Securities, organizer of the operation, there were total bids of 67.548 billion FCFA. The amount put up for auction by the issuer amounted to 50 billion FCFA. This gives a coverage rate of the amount put up for auction of 135.10%.

At the end of an issue of 5-year Treasury stimulus bonds (ORD), Guinea-Bissau collected CFAF 12.020 billion on the WAEMU financial market. WAMU-Securities indicates that the total amount of the bids amounted to 15.520 billion FCFA whereas the issuer had put in auction only 11 billion FCFA. This gives a coverage rate of the amount put up for auction of 141.09%.

Interest rates on the West African Economic and Monetary Union (WAEMU) money market were up in July 2022 compared to their June levels. This performance is linked to the increase in key rates of the Central Bank of West African States (BCEAO).

Stock markets

The Regional Securities Exchange (BRVM) and the Luxembourg Stock Exchange (LuxSE) signed a memorandum of understanding (MoU) on Wednesday on the development of sustainable finance in the WAEMU zone. This new partnership focuses primarily on sustainable finance, marks the first official step in a cooperation project aimed at strengthening sustainable finance in the West African Economic and Monetary Union (WAEMU).

At the end of the trading session on Wednesday, September 14, 2022, the market capitalization of the stock market of the Bourse Régionale des Valeurs Mobilières (BRVM) rose from 6,613.658 billion CFA francs the previous day to 6,166.869 billion CFA francs. That of the bond market is down by 10.742 billion, standing at 8170.005 billion FCFA against 8180.747 billion FCFA the day before. The total value of transactions was CFAF 891.100 million against CFAF 431.735 billion, an increase of CFAF 459.365 million. The indices closed higher. The BRVM composite index (general index of the stock market) gained 0.57% to 204.86 points against 203.69 points the day before. As for the BRVM 10 index (index of 10 leading stocks), it also gained 0.73% to 162.25 points against 161.07 points the day before.

Commodities

Oil prices wavered between gains and losses on Friday, after falling the previous day, still capped by growing fears of recession. At around 10:15 GMT (12:15 p.m. CET), a barrel of North Sea Brent crude for November delivery was up 0.13 percent at $90.96. U.S. West Texas Intermediate (WTI) for October delivery was down 0.09 percent at $85.06.

Gold is sliding as the dollar and yields rise on concerns about the U.S. Federal Reserve raising interest rates. Gold prices fell for a fourth straight session Friday, hitting their lowest level since April 2020. Spot gold was down 0.4 percent at $1,656.82 an ounce as of 8:45 a.m. GMT. U.S. gold futures were down 0.7 percent at $1,665.60. Gold prices have lost more than $400, or nearly 20 percent, since breaking through the key $2,000-an-ounce level in March. Elsewhere, spot silver slid 1.8% to $18.82 an ounce. Platinum fell 2.2% to $884.50, while palladium lost 2.5% to $2,082.38.

Companies

Pan-African housing development finance company Shelter Afrique has approved a $19.5 million line of credit to Mixta Afrique for affordable housing projects in Nigeria. The 7-year facility with a 24-month moratorium was structured to co-finance investments in Mixta's affordable housing projects and for debt refinancing. US$9.75(₦4billion) will be used to co-finance 1,171 affordable housing units comprising the ongoing Beechwood Park project (187 units) and the New Marula projects (984 units).

The president of the Chamber of Mines, Daour Dieng, announced that companies in the mining sector have paid more than 24 billion FCFA in royalties to the State of Senegal in 2020. According to Daour Dieng, the contribution of companies in the mining sector to the Gross Domestic Product (GDP) has been estimated at 162 billion CFA francs in 2020, an increase of more than 30 billion CFA francs compared to 2019. The mining sector is among "the six priority sectors identified" by the State of Senegal to increase "growth to 7% by 2035".

The Niger and Japanese rice companies have marked their continued agreement for the financing of six projects since 2016. Thus, more than CFAF 5 billion mobilized by Japan has enabled several incoming investments in the rehabilitation of infrastructure of the reception of renovated buildings of the Niger Rice Company (RINI).

The startup IOTA SO provides Beninese people with useful and intelligent objects. The presentation of these products was made on Friday, September 9, 2022 in Cotonou. It is a bag, hat, shoes, notepad, tie, briefcase, wallet, satchel, to name a few.

Janngo, the private equity firm based in Abidjan, Ivory Coast, announced its first closing at 34 million euros of capital commitments. By dedicating half of its resources to women-led companies through this fund, Janngo aims to work towards improving access to seed capital for technology entrepreneurs on a more equitable basis across the continent. Janngo's investment strategy will be to support start-ups that enable Africans to improve their access to essential goods and services and small and medium-sized enterprises on the continent, with a particular focus on women and youth.

Banking and Insurance

United Bank for Africa (UBA) Plc has released its audited financial results for the six months ended June 30, 2022. At the end of the first two quarters of the year, the bank was able to achieve a 12.6 percent appreciation in pre-tax profit (PBT).profit before tax (PBT) to N85.7 billion from N76.2 billion recorded in the same period of 2021. Operating profit rose 20.1% to N256 billion during the period, while the company's profit after tax ended the first half up at N70.3 billion.

In a statement issued on September 12, Ecobank Transnational Incorporated, the parent company of the Ecobank Group, announced that the current managing director, Ade Ayey, will be replaced by a new CEO.In a statement issued on September 12, Ecobank Transnational Incorporated, the parent company of the Ecobank Group, announced that the current Chief Executive Officer, Ade Ayeyemi, will retire after reaching the age of 60, in accordance with company policy. The Board of Directors has appointed Jeremy Awori to succeed Ade Ayeyemi as Managing Director. The effective dates will be communicated at a later date.

At the end of its meeting on Wednesday, September 14, 2022, the Monetary Policy Committee (MPC) of the Central Bank of West African States (BCEAO) decided to raise the Central Bank's key interest rates by 25 basis points, effective September 16, 2022. The main policy rate at which the Central Bank lends resources to banks is now 2.50%, up from 2.25%.

The Central Bank of Congo (BCC) has decided to postpone the application of the measure on the minimum capital of commercial banks operating in the country to January 1, 2025. In a press release, the issuing institute specifies that this postponement is due to the Covid-19 pandemic which has weakened several sectors of economic activity, including the banking sector.

La Régionale SA has obtained its license from the Central African Banking Commission (COBAC). An authorization that makes it the 18th banking institution in operation in the country. According to reports, La Régionale is a bank whose promoters are mainly private Cameroonian investors.

At the end of the first half of 2022, the net result after tax of the International Bank for Trade and Industry of Côte d'Ivoire (BICICI) has increased by 38.3% compared to the first half of 2021. The activity report of the banking institution indicates that this net result went from 4.413 billion FCFA in the first half of 2021 to 6.105 billion FCFA a year later, an increase of 1.692 billion FCFA in absolute value. According to the management of BICICI, this improvement is the consequence, among other things, of the control of management fees and the cost of risk, which led to an increase of 37.3% of the current result before taxes.

SUNU Bank Togoa obtained a PCI DSS (Payment Card Industry Data Security Standard) certification. In its role of securing credit card payments to its customers, SUNU Bank has complied with international data security standards applicable to the payment card industry. This is part of its strategic actions to improve its services to the satisfaction of its customers.

The Banque Nationale de Développement Agricole (BNDA) has just opened a new Automated Teller Machine (ATM) in Sénou, Mali. The objective is to get closer to its customers. According to the sales and marketing department of the green bank, the said ATM is located at the Shell station, opposite the Ecole Fondamentale Publique. It is now operational.

The former Gabonese Minister of Energy, Désiré Guedon, has just taken up his post as Executive Director of the African Development Bank for Benin, Burkina Faso, Cape Verde, Comoros, Gabon, Mali, Niger and Senegal. The newly promoted, who replaces the Senegalese Maimouna Ndoye Seck, will administer for a term of three years (2022-2025) with the support of Comoros (alternate), Burkina Faso (senior advisor) and Benin (advisor).

The directors of the company "Assurances Lafia-SA" have just chosen Sidibé Zamilatou Cissé to occupy the position of Chairman of the Board of Directors. This was during the meeting of members of the board of directors, held on August 10. It was also discussed the modalities for appointing a new CEO to head the company.

The Ghanaian government and the Africa Trade Insurance Agency want to combine their efforts to support small and medium-sized independent power producers in the country. The two parties are working to enable them to have more liquidity to develop their renewable energy projects. A Memorandum of Understanding was signed late last week for the deployment of the Regional Liquidity Support Facility (RLSF) in the country.

Financial crimes

France is being sued for failure to comply with the investor protection provisions of the Energy Charter Treaty (ECT). The French authorities have modified the photovoltaic feed-in tariffs. The French government's downward revision of the feed-in tariffs for photovoltaic electricity in 2020 is in the crosshairs of the German company Encavis, a producer of solar energy.German company Encavis, producer of renewable energy (RE), and three of its subsidiaries (Capital Stage Solar IPP, Société centrale photovoltaïque d'Avon-les-Roches, Le Communal Est Ouest).

The spread of crimes related to money laundering in northern Morocco is becoming increasingly worrying for the Northern Observatory for Human Rights (ONDH). In a statement, the Moroccan Observatory warned of the consequences of money laundering operations of drug lords in Tetouan, in the north of the Kingdom, and the suspicious enrichment ofa group of people active in the field of drugs and psychotropic drugs, drug trafficking, human trafficking, smuggling of migrants, fraud, breach of trust, corruption and abuse of influence.

Regulatory worries are piling up around the Entain betting group. After a sanction from the British regulator, the British company is facing another scandal after the betting commission in the United Kingdom imposed a record 17 million pounds (19.6 million euros) punitive fine last month. Australia announced on Monday the launch of an investigation into a subsidiary of the group to determine whether its activities were in compliance with the country's anti-money laundering and anti-terrorist financing laws.

Regional growth

Executives from banks and financing institutions met in Lomé last week as part of a seminar organized by the Ministry of Trade to publicize the WAEMU Industrial Restructuring and Upgrading Program (PRMN) in Togo.The meeting was organized by BRMN-Togo (Bureau de Restructuration et de Mise à Niveau), with the support of BRMN-Benin and the Togolese branch of the WAEMU Commission. The PRMN aims to revive industrial production, promote investment and employment, and improve the competitiveness of industries at the regional and international levels.