Browsing: Coronavirus

On Monday, the South Africa’s rand firmed back to below the key 15.00 per dollar mark, which is mostly on profit-taking and month-end positioning after a sustaining a steep slide triggered by the Wuhan coronavirus shaking the world, Reuters reveals.

At 0700 GMT the rand was 0.43 per cent firmer at 14.9650 per dollar, having ended at 15.0300 on Friday. The coronavirus dragged the currency to its weakest level in three months—traded at 14.4800 last Monday, which was 0.59 per cent lower than its New York Close on Friday, January 24.

Reuters reported that investors concerned about the spread of the coronavirus wiped more than $400 billion off the value of China’s stocks in the first trading session in two weeks after an extended Lunar New Year break as the death toll from the epidemic rose to 361.

READ:Coronavirus and the Implications for Emerging Markets

The rand has tumbled …

China is on an economic dalliance with Africa where trade between the country of the dragon and the ‘Dark Continent’ has hit US$188 billion from a meagre US$13 billion in 2001…

In addition to the tragic toll on human lives, the coronavirus outbreak in China brings potential economic and market implications for China and beyond. Franklin Templeton Emerging Markets Equity team has been monitoring the situation and weighs in with some thoughts, comparing it to the outbreak of SARS in 2003.

We are closely monitoring the impact on emerging market economies and equity markets from the outbreak of the coronavirus in China and other parts of the world. The situation is at an early stage and is evolving quickly. Both market and macro implications depend on the severity and duration of this epidemic episode.

What We Know So Far

• Since the first cases of the 2019 Novel Coronavirus (2019-nCoV) were notified to the World Health Organization (WHO) on December 31, 2019, over 4,500 confirmed cases have been reported in China, with over 5,700 suspected cases and 106 deaths.¹Based on

The China Coronavirus outbreak has shaken the world with fears of its spread looming.

Global markets have witnessed investors pulling their resources while calculating the economic impacts of the outbreak.

As China dines with Africa on the economic lines of trade, investment, and industrialization, there are rising concerns of whether the continent can contain the virus, which has already taken over 170 lives, with 7,000 confirmed cases and spread in about 15 countries.

Economic ramifications

There are growing concerns about the impact of the outbreak on Africa’s economies, earlier this week, a broad sell-off was witnessed in the global markets, affecting South Africa’s rand performance.

Theafricareport indicated that Johannesburg Stock Exchange plunged by as much as 2.6 per cent on Monday 28, the steepest decline in more than eight months.

South Africa, Kenya, Ethiopia, Uganda, Zambia, and Tanzania are some of the vibrant partners of China, whose economies rely on …

The Tanzanian government has taken serious precautions towards curbing the China coronavirus outbreak that has taken over 170 lives and more than 7000 new cases confirmed.

According to the Tanzanian Foreign Affairs Minister Palamagamba Kabudi, who was quoted by The Citizen, Tanzanians in China, particularly those with plans to travel abroad, have been urged to take attentive precautions related to guidelines issued by the Chinese government.

On the other hand, Tanzania’s national carrier, Air Tanzania told Reuters that it will resort to postpone its maiden flights from commercial capital Dar es Salaam to China.

The state-run carrier has been promoting and planning its charter flights to its historic development partner next month ahead of the expected launch of scheduled direct flights to the key Asia tourist hotspot.

Air Tanzania managing director Ladislaus Matindi told Reuters that, the company is taking precautions for the safety of its passengers, despite acquiring a …

South Africa’s rand has gained a slightly against the dollar early on Tuesday, after beginning the week on Monday on the back foot as investors calculated the economic impact of the coronavirus, which left stocks in Asia abandoned by investors.

Reuters reported that Africa’s most diversified economy currency firmed after hitting a more than six-week low in the previous session, and yet the coronavirus still weighs on the economic outlook.

At 0640 GMT, the rand traded at 14.5800 per dollar, 0.17 per cent than its previous close, while on Monday, at 0702 GMT the rand traded at 14.4800 versus the dollar, which is 0.59 per cent lower than its New York close on Friday 24th.

On the other hand, Reuters reported that the rand slipped to 14.6570 per dollar on Monday, its weakest since Dec. 12, with the selloff largely driven by investors dumping emerging-market assets.

Nedbank analysts wrote in …