The Stears Weekly Macroeconomic Report highlights the macroeconomic trends and policy shifts shaping the African investment landscape, helping you make informed decisions in dynamic markets.
Country updates
Central Africa
Foreign exchange
Central African currencies depreciated last week. The Central African CFA franc (XAF) depreciated marginally by 0.3% w/w despite the euro’s gain, and the Congolese franc lost 0.3% amid mounting forex pressure. The Angolan kwanza has maintained its fixed rate at AOA911.96/$. Overall, we expect a better performance in the coming week. The euro’s strength will be evident in the positive impact on the XAF’s performance, as markets weigh a weaker US dollar due to potential rate reduction by the Fed. The Congolese franc is likely to benefit from an expected foreign exchange injection to support the currency, as well as positive market sentiments regarding the Central Bank governor’s plan to launch a franc-denominated capital market, which aims to reduce reliance on foreign currency. On August
