Taiwo Adekeye, FMVA
December 13, 2023
Oil prices fell more than 3% on Tuesday to their lowest level in six months on concerns of oversupply and after U.S. economic data showed an unexpected rise in consumer prices. Brent crude futures for February settled down $2.79, or 3.7%, to $73.24 a barrel. U.S. West Texas Intermediate crude futures for January slipped $2.71, or 3.8%, to $68.61 a barrel.
Nigeria: Naira weakens marginally at the official market
The NGN slightly declined against the USD at both the official and parallel markets, with the intraday high hitting N1186/$1. The intraday high recorded was N1186/$1, while the intraday low was N720.00/$1, representing a wide spread of N466/$1. forex turnover at the close of the trading was $99.09 million, representing a 25.19% decrease compared to the previous day. At the parallel forex market, where forex is sold, the naira closed down 1.24%. The quoted exchange rate was N1210/$1, down from N1195/$1 the previous day
South Africa: The ZAR recovers as us inflation data looms
The ZAR recovered in early trade on Tuesday against the USD as global markets braced for consumer inflation data out of the U.S. The rand traded at 19.0025 against the dollar, about 0.4% stronger than its previous close. While the dollar last traded around 0.18% weaker against a basket of global currencies. The volatile rand frequently follows both domestic and international trends, such as changes in US monetary policy.
Kenya: Global tourists do not need visa to enter Kenya
President William Ruto announced on Tuesday that starting in January, visitors from all around the world will not need a visa to enter Kenya. In order to eliminate the necessity for visa applications, the government created a digital platform that guaranteed every visitor would obtain an electronic travel authorization ahead of time. The tourism industry plays a major role in Kenya’s economy, offering beach holidays along its Indian Ocean coastline and wildlife safaris inland.
Brazil: Brazil to resume import taxes on solar panels
The Brazilian government approved steps to increase import duties on wind turbines and solar modules, which should encourage domestic manufacture of equipment used to produce renewable energy. The government revoked an import tax subsidy on assembled solar panels, as the country manufactures similar products, the government also revoked more than 300 temporary tax reductions on solar modules, effective in 60 days. Solar energy has already surpassed coal as the nation’s main source of electricity, and part of the equipment needed to produce it is made in Brazil. However, the panels are primarily imported from China.
Argentina: Argentina treats its budget deficit by devaluing the peso and cutting spending
Argentina will devalue its peso by more than 50% to 800 per dollar, cut energy subsidies, and cancel tenders of public works. The decision would be a tough one in the short-term but was needed to cut the fiscal deficit and bring down triple-digit inflation says the Economy minister. The South American country, a major grains producer, is battling inflation nearing 150%, central bank reserves deep in the red and two-fifths of the population in poverty. It has a wobbling $44 billion loan with the International Monetary Fund.
India: India’s retail inflation hits 3-month high in November
The increase in food costs in November caused India’s retail inflation to rise at its quickest rate in three months, which strengthened views that the central bank would not lower interest rates anytime soon. Annual retail inflation rose to 5.55% in November from 4.87% in the previous month. Food inflation, which accounts for nearly half of the overall consumer price basket, was 8.70% in November, up from 6.61% in October. Core inflation, which exempt volatile food and energy prices, was estimated to be 4.05%-4.2% in November, compared with 4.20%-4.28% in October.
