Oil Prices Slip, Nigeria To Further Relax FX Control, EU-Kenya Trade Deal, and EGX Decline

Oil prices slipped on Tuesday after China cut benchmark lending rates less than some expected, sowing further concern over the oil demand outlook in the world's largest crude importer. Brent crude was down 19 cents at $75.90 a barrel at 0545 GMT. U.S. West Texas Intermediate (WTI) crude for July was down $1.02 from Friday's close at $70.76. The July contract expires at the end of trade on Tuesday.

NIGERIA: Central Bank Plans More Steps Toward Managed FX Float

Nigeria is set to introduce additional measures to relax foreign exchange controls and transition to a managed float regime, according to a senior Central Bank official. Deputy Governor Kingsley Obiora stated that the Central Bank has refrained from intervening in the currency market since allowing the naira to decline by 29% in a single day. The objective is to allow the market to determine the currency's price. Under President Bola Tinubu's administration, Nigeria has implemented various reforms to replace the unorthodox economic policies pursued by Muhammadu Buhari. Although Nigeria won't completely free the currency, Obiora emphasised the continuation of a managed float approach. Obiora also mentioned that it is too early to ascertain if the naira's exchange rate with the dollar has reached its lowest point, referring to analyses conducted by the International Monetary Fund and international banks that indicated the naira should not be as weak as the parallel market suggested.

KENYA: EU Signs Trade Deal with Kenya, Offers Duty-Free Access

The European Union and Kenya have signed a trade agreement granting duty- and quota-free access to Kenya in the bloc. The deal, which has been in discussions for over a decade, is open for other East African countries to join. While Kenya agreed to the pact in 2016, other East African Community members did not approve a regional deal. The agreement between the EU and Kenya is considered a bilateral implementation of a regional agreement with the Eastern African Community. Kenya plans to engage with other East African Community states and African nations to create a larger free-trade area. The agreement will benefit Kenyan exports and encourage European companies to invest in the country. The EU is Kenya's second-largest trading partner

GHANA: Intra-African Trade in Focus at Afreximbank's Annual Meetings in Accra

The 30th Afreximbank Annual Meetings (AAM2023), marking the 30th anniversary of Afreximbank's establishment, commenced on June 18 and concludes on June 21. Mohamed Maait, Egypt's finance minister and chairman of the meetings, stressed the need for collaborative efforts to address Africa's emerging challenges. Represented by Gamal Negm, deputy governor of the Central Bank of Egypt, Maait praised Afreximbank's role in developing and implementing solutions for Africa's problems. He expressed hope that AAM2023 would yield more constructive outcomes, emphasizing Afreximbank as a key institution aligned with the African Union's Vision 2063. Prof. Benedict Oramah, President and Chairman of the Board of Directors, highlighted the successful implementation of the Pan-African Payment and Settlement System (PAPSS), saving the continent $5 billion in intra-African transfer charges and facilitating trade in African currencies.

EGYPT: Gold Prices Slide as Egyptian Exchange Ends in Red Territory

Gold prices continued their downward trend as 24-carat gold dropped by EGP 62.75 to EGP 2,485.75 per gram yesterday. 21-carat gold also decreased by EGP 55, reaching EGP 2,175 per gram, while 18-carat gold lost EGP 47.25, settling at EGP 1,864.25 per gram. The gold pound depreciated by EGP 440, reaching EGP 17,400. On the Egyptian Exchange, the EGX30 index slightly declined by 0.21% to close at 17988.95 points. Similarly, the EGX70 index dropped by 0.19% to 3555 points, and the EGX100 index slipped 0.12% to end at 5274.09 points. Market capitalization increased to EGP 1.181 trillion. Exchange rates for the dollar, euro, and Saudi riyal remained relatively stable