Naira Soars, Shilling Up on Rate Cut, Rand Flat Amid Data

Here’s this week’s overview of the Nigerian Naira, Kenyan Shilling, and South African Rand:

Nigerian Naira

The Nigerian Naira gained 1.75% against USD last week to trade at 1583 to the Dollar.

Nigeria's central bank said on Wednesday it has sold $876.26 million at 1,495 naira to the dollar at its first retail auction for end users.

The auction drew bids of $1.18 billion, received from 32 authorised dealers, the central bank said, adding that only 26 banks with bids valued at $876.26 million qualified.

Kenyan Shilling

Kenyan Shilling gained against the dollar last week to trade at 128.5 on Friday.

The Central Bank of Kenya lowered its benchmark interest rate to 12.75% at its meeting on Tuesday, after maintaining rates at their highest since 2012 for the past four meetings.

This decision was prompted by easing inflationary pressures. Kenya's overall inflation rate fell to 4.3% in July 2024, remaining below the target midpoint, thanks to stable food prices and a reduction in fuel costs.

Additionally, the country's GDP grew by 5.0% on an annualised basis in the first quarter of 2024, supported by strong agricultural performance and robust growth in the services sector.

While the banking sector remains stable with healthy liquidity ratios, concerns regarding geopolitical tensions and the impact of recent protests persist.

South African Rand

South African Rand ended flat against USD last week to trade at 18.3 at close on Friday. Data was largely disappointing with an unexpected decline in manufacturing production and weaker than expected foreign exchange reserves.

The stronger than expected US jobless claims data on Thursday calmed markets, however, and allowed the Rand to firm against the dollar later in the week.