Africa: Foreign exchange rates as of 11:05 am AST

Currency Pair14 March 202215 March 202216 March 202217 March 2022
USD/NGN415.34415.241415.161415.592
USD/GHS7.03247.096087.117657.21492
USD/ZAR15.024115.074915.110115.0241
USD/GMD53.290453.245253.180953.0686
USD/AOA465.372465.372460.64452.606
USD/UGX3,589.463,593.013,573.673,570.82
USD/RWF1,006.381,007.041,005.521003.51
USD/KES113.301113.257113.35113.453
Dollar Index98.9398.7398.5798.13
Sources: OANDA, MarketWatch

Africa: Foreign exchange rates as of 10:01 am AST

Currency Pair14 March 202215 March 202216 March 202217 March 202218 March 2022
USD/NGN415.34415.241415.161  
USD/GHS7.03247.096087.11765  
USD/ZAR15.024115.074915.1101  
USD/GMD53.290453.245253.1809  
USD/AOA465.372465.372460.64  
USD/UGX3,589.463,593.013,573.67  
USD/RWF1,006.381,007.041,005.52  
USD/KES113.301113.257113.35  
Dollar Index98.9398.7398.57  
Sources: OANDA, MarketWatch

Africa: Foreign exchange rates as of 8:53 am AST

Currency Pair14 March 202215 March 202216 March 202217 March 202218 March 2022
USD/NGN415.34415.241   
USD/GHS7.03247.09608   
USD/ZAR15.024115.0749   
USD/GMD53.290453.2452   
USD/AOA465.372465.372   
USD/UGX3,589.463,593.01   
USD/RWF1,006.381,007.04   
USD/KES113.301113.257   
Dollar Index98.9398.73   
Sources: OANDA, MarketWatch

Africa: Foreign exchange rates as of 9:40 am AST

Currency Pair7 March 20228 March 20229 March 202210 March 202211 March 2022
USD/NGN415.769414.987414.987415.045415.341
USD/GHS7.05397.038567.038567.021527.01519
USD/ZAR15.353415.307415.307415.135615.0593
USD/GMD52.965453.058253.058253.110753.1487
USD/AOA470.136470.436470.436470.174469.209
USD/UGX3,582.843,586.453,586.453,591.783,593.51
USD/RWF1,017.671,012.151,012.151,009.761,003.57
USD/KES113.073113.103113.103113.157113.233
Dollar Index98.7398.9498.4598.2098.56
Sources: OANDA, MarketWatch

Africa: Foreign exchange rates of interest as of 10:13 am AST

Currency Pair7 March 20228 March 20229 March 202210 March 202211 March 2022
USD/NGN415.769414.987414.987  
USD/GHS7.05397.038567.03856  
USD/ZAR15.353415.307415.3074  
USD/GMD52.965453.058253.0582  
USD/AOA470.136470.436470.436  
USD/UGX3,582.843,586.453,586.45  
USD/RWF1,017.671,012.151,012.15  
USD/KES113.073113.103113.103  
Dollar Index98.7398.9498.45  
Sources: OANDA, MarketWatch

Interbank Market News Scan : A thought on creating an Afro-American currency …

My morning takeaway …

I think a currency should reflect the reality of the relationship between two distinct political economies that reside under a single flag.  I am specifically concerned with two groups under the American flag: Afro-America and the Virgin Islands of the United States.  Neither group have been fully incorporated into the American political economy.  There is only a 47-year difference between their starting attempts at incorporation into the United States with Afro Americans, at least on the surface, holding a lead in political-economic corporation due primarily to their physical presence in the contiguous United States, their 43 million population, and thus greater access to political channels.

Both Virgin Islanders and the Afro-American community have disproportionately higher poverty rates, lower incomes, and higher unemployment rates than their white American counterparts.  Both communities suffer from a dearth of capital and lack productive capacity, for now, through which they could independently sustain themselves.  Their banking markets are, like the rest of the United States, subject to the Federal Reserve, and the lip service of the Fed’s community development initiatives and the Community Reinvestment Act of 1977.

A priori, neither community draws the attention of family offices, hedge funds, investment banks, or individual trading desks in search of margin that supports any trade, including foreign exchange.  This is due primarily to both communities not having sufficient pooled natural and human resources upon which a currency (value or “energy”) can be calculated and leveraged.

Then again, under a credit creation theory of banking, this may not matter where credit, money, margin, are created out of thin air … but more on that at some other time.

In the mean-time I thought it would be interesting to add two proxy foreign exchange rates reflecting the currency of the Virgin Island (USVI) and Afro-American (AfAM) communities.  It is my endeavor, amongst too many others, to develop them in the near future …

20 May 2021

Currency PairsRates as of 2:00 pm GMT 20 May 2021Rates as of 12:44 pm GMT 19 May 2021
GHS/EUR0.14180.1419
GMD/EUR0.01610.0159
NGN/EUR0.00200.0020
SLL/EUR0.00010.0001
KES/EUR0.00750.0076
RWF/EUR0.00080.0008
ZAR/EUR0.05830.0584
MZN/EUR0.01370.0137
XCD/EUR0.30330.3033
USVI/USD0.00010.0001
AfAM/USD0.10000.1000
Source: OANDA, Alton Drew

Links you should follow …

Banks.  Three of the biggest US banking groups want the US Department of Agriculture to reconsider the terms of billions of dollars in planned debt relief for minority farmers, claiming it will cut into banks’ profits — and warn they may have to cut those same farmers off from future loans.  Banks say USDA’s debt forgiveness for minority farmers will cost them money and could affect future loans. Black farmers call that a threat. (msn.com)

Banks. Australian stocks closed higher on Thursday, marking their steepest rise in nearly two weeks, due to gains in tech and banking stocks and upbeat employment data.  Australian shares see best day in nearly 2 weeks on jobless data, banks boost | Nasdaq

Banks. In an effort stemming from the murder of George Floyd and at the behest of a Connecticut state official, a who’s who of financial institutions on Tuesday promised to address the effects of racial disparities in financial services by investing billions of dollars to support Black and Latinx communities. A state treasurer convinced big banks to commit billions of dollars to tackle racial inequities. This is the result. (msn.com)

Banks. Mike Mayo, Wells Fargo Securities senior banking analyst, joins ‘Power Lunch’ to discuss the competition banks could be facing from fintech, the future of bank branches and more. Banks are headed toward record efficiency, says Wells Fargo’s Mike Mayo (msn.com) Banks, central banks, digital currency. Can crypto benefit central banks? 3 ways digital currencies backed by central banks could benefit the global economy, according to Fitch (msn.com)

Central banks. The Bahamas became a global leader in e-money last year when it launched one of the world’s first central bank digital ­currencies—the “sand dollar”—beating China’s “digital renminbi” to the market by six months. How the Tiny Bahamas Beat Global Giants in the E-Currency Race (msn.com)

Interbank Market News Scan: If currency reflects value, Europe buys Africa on the cheap ….

My morning takeaway …

The value of a currency is determined by changes in supply and demand; the demand for Treasury notes denominated in the base currency; and the amount of the base currency held in reserve by foreign central banks.  The greater the amount of base currency held by foreign central banks, the lower the supply of the term currency, thus the higher the term currency’s price.

In the table below, the base currencies are on the left of the slash mark, the African currencies. The term currency, in the case the euro, is on the right of the slash.  So, today one Ghanaian cedi (GHS) is priced at 0.1419 euros.

At first blush it is tempting to consider the low euro price as a bad thing.  Yes, currency represents a country’s economic value and given these low absolute euro values a reader may feel despondent that Europe looks apparently with low favor on the African continent.  They would not be wrong.  The African continent has long been Europe’s supplier of resources with a well-documented imbalance in the relationship.

Coming terms with the imbalance should include African central banks and national governments taking fiscal and monetary actions to drive up their currency values.  The continent has taken small but important steps toward doing so with the creation of the African Continental Free Trade Area (AfCFTA) which went into effect last January.  The 54 signatories to the agreement hope that removing non-tariff barriers to trade, elimination of 90% of tariffs on internal trade, and the facilitation of the movement of human capital between nations will go far in stemming its move from the current colonial model and, in the words of Wamkele Mene, the AfCFTA secretariat, move Africa away from being a provider of commodities with final goods being processed elsewhere.

With a little resilience and focus, the Continent will get there and Europe will have to take another look at how she evaluates Africa’s value…

19 May 2021

Currency PairsRates as of 12:44 pm GMT 19 May 2021Rates as of 19 April 2021
GHS/EUR0.14190.1437
GMD/EUR0.01590.0162
NGN/EUR0.00200.0022
SLL/EUR0.00010.0001
KES/EUR0.00760.0077
RWF/EUR0.00080.0008
ZAR/EUR0.05840.0584
MZN/EUR0.01370.0135
Source: OANDA

Interbank Market News Scan: Remittances, foreign exchange; Africa sees average cost of remittances at 8.2% …

Foreign exchange rates of interest…

Currency PairsRates as of 8:13 am EST 17 May 2021
USD/AOA652.8280
USD/GMD50.9478
USD/GHS5.7535
USD/NGN379.9410
USD/KES108.0900
USD/SLL10134.0000
USD/RWF979.3480
USD/ZAR14.1119
USD/MZN58.3200
Source: OANDA

Links to follow …

Remittances. According to the bank’s latest Migration and Development Brief, officially recorded remittance flows to low- and middle-income countries reached US$540 billion in 2020, 1.6 per cent below the 2019 total of US$548 billion. Remittance flows remained strong during COVID-19 in 2020, says World Bank (jamaicaobserver.com)

Remittances, Philippines. Remittances continued to grow in March as more countries eased travel restrictions and reopened borders to foreign workers, the Bangko Sentral ng Pilipinas (BSP) reported Monday. Remittances up 4.9% in March (msn.com)

Remittances, Ghana. Remittances from Ghanaians grew by five per cent from $3.39 billion in 2019 to $5.57 billion in 2020, a World Bank report has said.
This was in spite of the grim economic outlook presented by the COVID-19 pandemic, which affected people’s earnings and the economies of nations worldwide last year. Remittances From Ghanaians Abroad Increase | Social | Peacefmonline.com

Remittances, Nigeria. Pan-African credit rating agency, Agusto & Co has projected that Nigeria’s diaspora remittances will reach $22 billion by 2021, representing a year-on-year (y-o-y) rise of five per cent. Agusto & Co Forecasts $22bn Diaspora Remittances for Nigeria in 2021 | THISDAYLIVE

Remittances, Kenya. Kenya is targetting to collect at least Sh700 billion from over four million Kenyans working abroad, Labour Cabinet Secretary Simon Chelugui has said. Kenya targets Sh700 billion in diaspora remittances annually (the-star.co.ke)