Taiwo Adekeye, FMVA
Research Analyst
U.S. light crude oil gained more than 2% a barrel on Friday after comments by U.S. Federal Reserve Chair Jerome Powell indicated the central bank was preparing to cut interest rates. Brent crude futures settled up by $1.80, or 2.33%, at $79.02 a barrel. U.S. West Texas Intermediate (WTI) crude futures finished up $1.82, or 2.49%, at $74.83.
Rand surged by 1.82% after Powells remark
The South African rand jumped on Friday, after comments by Federal Reserve Chair Jerome Powell signalled an interest rate cut next month. “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” Powell said to the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming. The Rand traded at 17.71 against the dollar , 1.82% stronger than its previous close while the Dollar index slumped 0.75% against a basket of currencies following Powell’s remarks.
FIRS To Draft Tax Bill For $400m Crypto Market September
Nigeria’s Federal Inland Revenue Service (FIRS) plans to introduce new tax legislation for Nigeria’s $400 million cryptocurrency market by September 2024. The currently unregulated market is believed to have contributed to the Naira’s depreciation against the dollar through exchange rate manipulation. Additionally, Nigeria’s Securities and Exchange Commission (SEC) is preparing to implement licensing for virtual and digital asset providers, including cryptocurrencies, with license issuance expected to begin shortly.
Nigeria’s July Remittances Hit $553m
The Central Bank of Nigeria (CBN) announced that remittance inflows to Nigeria rose to $553 million in July 2024, up from the $365 million reported in May 2024. For the first half of 2024, total remittances reached $2.34 billion, compared to $1.58 billion in the same period of 2023. This increase in remittances, driven by recent CBN foreign exchange reforms, complements the Foreign Portfolio Investment (FPI) flows, which grew to $5.92 billion in H1 2024 from $1.77 billion in H1 2023. However, exchange rate volatility may persist if export levels do not strengthen.
S&P Downgrades Kenya’s Credit Rating After Finance Bill Repeal
Global credit ratings agency S&P downgraded Kenya’s rating from “B” to “B-” on Friday, citing the recent repeal of the country’s 2024/2025 Finance Bill. The agency noted that this repeal, which followed protests leading to over 50 deaths and President William Ruto’s decision to discard the bill containing 346 billion shillings ($2.69 billion) in tax hikes, will hinder fiscal consolidation efforts. The downgrade reflects concerns about Kenya’s worsening medium-term fiscal and debt outlook due to the reversal of proposed tax measures.
