Browsing: inflation

Zimbabwe dollars. Many Zimbabweans are forgoing traditional Christmas travels to the countryside due to lack of money. www.theexchange.africa

The global economy has come back strongly. So has inflation. Commodity prices are also making a strong comeback; however, their resurgence is causing stress in other economies.

Rising demand has pushed oil prices to a rising trend which may, in the long run, prove to be unsustainable. Food price inflation has reportedly reached the highest level since 2011. Further compounding the problem for households and businesses is the fact that in the United States consumer inflation has reached 5.5 per cent annually which is the highest it has been in 31 years.

Companies operating in Africa and the rest of the world need to consider these developments into their expectations and decisions. The question is how? How can companies inflation-proof, as it were, their finances to protect their viability?

Cash is always king in times of uncertainty and inflation. There are six ways that companies are well-advised to adapt to…

Zimbabwe is cracking down on individuals it terms illegal forex traders. www.theexchange.africa

If you received your salary on the 1st of January in ZWL, you would struggle to pay for goods and services in February. This volatile situation results in consumers seeing value eroded from their bank balances at an astonishing rate.

We see wages struggle to keep up with inflation, a phenomenon similar to 2008. Most people buy USD from the black market to retain some semblance of value in these balances.

Zimbabwe has a currency crisis, and the Authorities seem to be struggling to deal with it. The rate at which the Zimbabwe dollar is depreciating signifies the state of the economy. Much of this is being blamed on the countries foreign currency auction system.…

A morsel of bread. Kenya needs political will to ensure that agricultural productivity increases to stave off hunger. www.theexchange.africa

The KNBS report shows that the price of onions (leeks and bulbs), white bread, cooking oil (salad) and tomatoes increased by 7.46, 4.71, 4.62 and 4.55 per cent, respectively, in December 2021. Interestingly, these are the most basic household food items you will find in most homes.

When prices go up as much as they have done, it means that most households will either have to find alternatives or make do without these basic food items altogether.

In an election year, this is not something that Kenyans are prepared for especially with the decimation of job opportunities and livelihoods caused by the pandemic.

On another front, the country faces further hardships as consumer power declines. With food becoming scarce, the country is in dire straits already. Food production in Kenya is far behind demand.…

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Maize. Kenya food import bill has risen to sh155.42 billion as the country’s inflation rate continues to increase. www.theexchange.africa

In the first six months of the year, Kenya’s food imports had increased to sh103.34 billion. The figures collected by the Kenya Revenue Authority (KRA) showed that the food imports were sh12.35 billion more than the amount spent in the same period in 2020.

According to data from the national treasury, import expenditure increased by 29 per cent in the third quarter of 2021. China is the most significant contributor of Kenyan imports accounting for 31.6 per cent of the total bill from the Asian continent.

This is the fastest growth in the food import bill since a 60 per cent jump recorded in 2016 when the bill stood at sh82.83 billion. The exponential increase has been linked to the growing popularity of digital trading, allowing retailers and consumers to order and ship food and other commodities directly.…

Zimbabwe is cracking down on individuals it terms illegal forex traders. www.theexchange.africa

This year’s current account surplus was replaced by a deficit of 1.8 per cent of GDP and a budget deficit of 2.9 per cent in 2020, respectively.
A depreciation of ZWL2.5 to the US dollar was recorded in February 2019 before stabilizing at ZWL82 in December 2020. Unemployment remained high in 2019 at over 21 per cent, with poverty at 70.5 per cent and unemployment at 70.5 per cent respectively.
Currently, the banking sector is sound. …

Zimbabwe is cracking down on individuals it terms illegal forex traders. www.theexchange.africa

This means that these individuals would not be able to access financial services from the banks for a period of up to two years. The matter is still unfolding, and further developments will be advised in due course.
Zimbabwe, after attaining the highest inflation record in world history and especially for a country that was not involved in an armed conflict, took the decision to demonetize its defunct currency in favour of a basket of foreign currencies led by the United States dollar.
After a period of relative economic stability, the country took the decision to reintroduce the Zimbabwe dollar initially as a surrogate currency known as the Zimbabwe bond note. This was a response by the monetary authorities to a shortage of foreign currency and bank notes. …

L Sithole To Dollarize Or Not To Dollarize 01
  • Zimbabwe did not have a parallel market for foreign exchange in the years running from 2009 to around 2016.
  • Zimbabwe is heavily reliant on imported products and expends more foreign currency than it can afford.
  • Demand pressure has contributed to the fall of the Zimbabwe dollar resulting in general inflation.

To dollarize or not to dollarize?

This question has robbed monetary authorities of sleep as the Zimbabwe dollar falls precipitously on the parallel market.

Zimbabwe did not have a parallel market for foreign exchange in the years running from 2009 to around 2016.

It all began with the introduction of a surrogate currency that was fallaciously pegged at par with the United States dollar. The authorities initially posited that the surrogate currency was supported by a loan facility extended by the Africa Export-Import Bank (Afrexim Bank).

This loan it was said underscored the parity of the currency. It did not …

Kenya Private Sector August

The Kenyan private sector has recorded improvement for a fourth straight month in August 2021, according to a new report.

Stanbic Bank’s Purchasing Managers’ Index report indicates that the rate of growth picked up in August as firms saw a faster expansion in new business compared to July.

During the period, job creation also strengthened, but output rose at the slowest rate in four months and business confidence fell to a near-record low.

After climbing sharply in July, the pace of input cost inflation eased in August, leading firms to increase their charges at the softest rate in 2021 so far.

As such, the country’s PMI picked up to 51.1 from 50.6 in July, to remain above the 50.0 neutral mark for the fourth month in a row.

According to the index, readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show …

bank

Zimbabwe is on the verge of another economic cramp that is bound to be far worse than what it has been suffering for the last decade.

Already, the nation has been on an indefinite national lock down for the third month running, and now, the pandemic is really taking a dire toll on the economy. Well, it is not the Coronavirus effect that is bound to doom Zimbabwe into an economic crunch (yet again).   Rather, it is the country’s tendency to simply print money whenever it deems fit; if only life were so easy!

Zimbabwe, like all other countries, is looking to cushion its business sector from the coronavirus crunch. However, the way Zimbabwe is looking to fund its proposed US$ 998.34 million (ZW$18 Billion) stimulus package is if anything, questionable, if not downright inadvisable, or to be blunt, shall we just go ahead and call it, rudimentary?

Well, how…

A Nigeria Market by ft

Nigeria, the largest economy in Africa, has seen its inflation quickened to nearly two years high in January as food shortages caused by border closures continued to drive up the price of staples, the Nigerian National Bureau of Statistics revealed.

According to information from Bloomberg, the statistician report revealed that: consumer price rose to 12.1 per cent from a year earlier, compared with 12 per cent in December, which marks the fifth month of increases.

However, there were several crucial aspects in relation to the scenario, as revealed by Bloomberg.

It was highlighted that the nation’s monetary policy committee’s ability to raise interest rates to contain inflation is hampered by slow economic growth.

In January a Nigerian economist and Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele raised the number of money banks to need to deposit at zero interest with the central bank to clear up …