Oil Stabilises, Kenya Gets World Bank Support, Ghana Reinforces Ban on Crypto, Nigeria's Forex Depleted, Angola's Oil Strategy

Oil prices stabilize as market weighs global economic slowdown fears and tighter crude supply. Brent crude dips to $76.45 per barrel by 07:52 GMT, while US West Texas Intermediate falls to $71.74 after prior gains.

KENYA: World Bank Supports Tightening Monetary Policy to Boost Forex Inflows

The World Bank Group has endorsed the Central Bank of Kenya's (CBK) decision to tighten its monetary policy stance, aimed at increasing foreign exchange (forex) inflows and bolstering the exchange rate. In a recent report, the World Bank highlights that the CBK's slow adjustment of the benchmark interest rate coincided with a decline in official reserves. Unfavorable global financing conditions and limited net capital and financial account inflows further impacted the situation. By acknowledging these challenges, the World Bank's disbursement of $1 billion to Kenya aims to address the decline in forex reserves and support the economy.

Ghana: Government Reiterates Ban on Cryptocurrency Transactions, Allows for Blockchain Innovation

The government has restated its prohibition on the use of cryptocurrency in all financial transactions, instructing all licensed institutions in the country to refrain from facilitating crypto transactions. Dr. Mohammed Amin Adam, Minister of State at the Finance Ministry, emphasized this stance during a parliamentary session. However, the government expressed its openness to exploring blockchain technology and other distributed innovations within a controlled environment. Until a regulatory framework is established, the government urges compliance with the directive issued on March 9, 2022, prohibiting cryptocurrency transactions through licensed institutions.

NIGERIA: CBN Depletes Nigeria's Forex Reserves in Defense of Weak Currency

Nigeria's forex reserves have depleted to their current levels due to the Central Bank of Nigeria (CBN) expending $17.81 billion in 2022 to defend the nation's weak currency in the forex markets. This amount was higher than the $16.55 billion injected in 2021. The intervention at the inter-bank forex market aimed to stabilize the Naira but resulted in a decrease in external reserves from $40.53 billion in December 2021 to $34.22 billion in June 2023. The CBN's activity report revealed that $7.12 billion was distributed and sold at the spot market, while $10.69 billion was sold and distributed at the forwards market, with specific allocations for different sectors.

ANGOLA: Government Lays Out Strategy to Stabilize Oil Production and Combat Decline

Angola's Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, reiterated the country's strategy to stabilize oil production and combat its decline during a seminar in Vienna. The strategy focuses on boosting exploration and bidding for new oil blocks. Azevedo highlighted that measures are being implemented in marginal fields to develop studied and agreed-upon areas. Additionally, Angola is working on projects to add value to its oil production, including petrochemical refining, ammonia and urea production, and increasing onshore storage capacity. Azevedo emphasized the country's commitment to participating in the energy transition process.

?

?

?

?

?

?

?