Executive summary
- The dollar has risen moderately since the recent US elections, with expectations of stronger economic growth under a Trump presidency exerting pressure on emerging market currencies. On average, the nine currencies tracked on the Stears Africa FX monitor depreciated by 0.2% m/m in November 2024. The strengthening dollar presents another challenge for interest rate decisions, as policymakers closely monitor interest differentials relative to the US. The outcome of the US elections forebode potential policy shifts that have increased policy uncertainty in Africa. These shifts could impact trade relations, foreign aid, and investment flows, creating a more challenging environment for African economies in the medium term. In Ghana, anticipation and speculation around the December 7, 2024 elections could further heighten political and economic uncertainty. The economic growth outlook for major African economies is broadly positive. IMF projections for real GDP growth are: South Africa at 1.1% in 2024, 1.5% in 2025,
