Foreign exchange market

The economic crisis, the closure of borders and the suspension of international flights do not seem to affect the foreign exchange market. The dollar is recovering after a slight bout of weakness. The Canadian dollar traded at the midpoint, up from its midpoint of 81.20 US cents. The single European currency is still above the symbolic bar of 200 Algerian dinars. The pound follows the recovery of its economy but two obstacles are looming. The GBP/USD pair resumed its upward trend.

Cryptocurrency

While the king of the cryptocurrency market is pausing in its evolution, it is Ether, the second cryptocurrency which is currently showing a strong increase in its value, to the point of crossing the 3000 dollar mark for the first time. This represents a 300% increase in its value since the beginning of the year, where Bitcoin has only gained 100%, after several broken records but also a decline since.

Money Market

At the end of its issue of recovery bonds (ORD) of the Treasury with a maturity of 5 years, the General Directorate of Treasury and Public Accounts of Togo collected 22 billion FCFA. The operation organized with the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO) aims to enable the issuer to mobilize the savings of natural and legal persons with a view to to cover the financing needs of the Togo State budget as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and restore performance prior to the health crisis.
Burkina Faso also raised on the financial market of the West African Monetary Union (UMOA) an amount of 66 billion FCFA. At the end of its issue of recovery bonds (ORD) from the Treasury with a maturity of 3 and 5 years organized in partnership with the Agence UMOA-Titres based in Dakar, Burkina Faso listed 139.011 billion FCFA while it was not requesting only 60 billion FCFA. This gives a rate of coverage of the amount auctioned of 231.69%.
Also the Public Treasury of Mali raised an amount of 27.500 billion FCFA on the regional financial market at the end of its issue of assimilable treasury bonds (BAT) with a maturity of 364 days. Out of an overall auction amount of 25 billion FCFA, overall bids from investors stand at 55.640 billion FCFA, representing a coverage rate of 222.56% of the amount auctioned.

Stock market

At the end of the trading session of this Monday, May 03, 2021, the market capitalization of the stock market of the Regional Stock Exchange (BRVM) stood at 4537.774 billion FCFA against 4.525.436 billion FCFA. FCFA the day before. The BRVM 10 index fell from 130.16 points the day before to 129.81 points on Monday, a decline of 0.27%. For its part, the BRVM Composite index gained 0.27% to 150.78 points against 150.37 points previously.
Nestlé Côte d'Ivoire made six successive days of increases at more than 6% on the BRVM. The company has decided to distribute nearly 9 billion FCFA in dividends to its shareholders. For the public, which holds 19.14% of the company's shares on the BRVM, this represents a return of 58% based on the closing price on April 21 (625 CFA francs), compared with the average market return. which was at 7.7%.
For its part, Total Côte d'Ivoire plans to distribute a gross dividend of 7.6 billion FCFA to its shareholders on behalf of the 2020 financial year, we learn from the financial statements published by the company on the Regional Stock Exchange. securities (BRVM) of Abidjan where it is listed. This represents just over 99% of its net profit and nearly 121.5 CFA francs of gross dividend before tax for each share held by investors.
12th out of the 30 SGIs in Umoa, SGI-Togo evaluated its stock market transactions at 7.24 billion FCFA. This volume, which represents only 1.47% of the transactions carried out during the year under review, remains low compared to those of the behemoths of the Abidjan stock market such as the CGF Bourse, Hudson & Cie, Attijari SWA.
The New York Stock Exchange closed in mixed order. The Dow Jones blue chip index hitting a new high, while NASDAQ technology stocks fell slightly.

Companies

Suncor Energy Corporation released its first quarter 2021 results. Total production increased to 785,900 barrels of oil per day (“boe/d”) for the first quarter of 2021, compared to 739,800 bpd for the corresponding quarter of the previous year, due to a combined utilization rate of recovery facilities of 97% and record in situ production.
As of March 31, 2021, the net income of Société Africaine de Plantation d'Hévéas (SAPH) fell. Meanwhile, the Ivorian company PALM CI, recorded an increase in turnover of 14.51% to 119.76 billion FCFA against 104.59 billion FCFA in 2019, an operating result up 238% standing at 5.51 billion FCFA against -3.98 billion in 2020 and above all a net result up by 163%.
The CEO of Fludor Benin SA and President of the Council of Private Investors of Benin (CIPB), Roland Riboux was received this Thursday, May 6, 2021 on the program dedicated to the valuation of economic actors, "The Economist's Club". Facing the media, the Franco-Beninese Roland Riboux, announced that he had succeeded in establishing a public-private dialogue, through the consultation framework, with the Ministry of Finance, the Ministry of Justice and soon a new consultation framework with the Electricity Regulatory Authority (ARE). Fludor Benin SA, specialized in the production of edible oil, the production of food-grade shea butter and the shelling of cashew nuts, aims to achieve record performance in the months to come.

Raw materials

Oil is treading water despite falling US inventories. Crude prices reversed their trajectory, to end close to equilibrium. The benchmark European crude contract had stopped earlier in the session within cents of the $70 mark. In New York, the American barrel of WTI for the month of June rose in session to a price not seen since March 8, but ended in very slight decline.
According to the outlook, cotton from Burkina Faso will experience the highest tariff for 5 years. The Ministry of Industry, Trade and Handicrafts of Burkina Faso has set the transfer price per kilogram of seed cotton at 270 FCFA for the 2021/2022 campaign.
Regarding cocoa, exports of beans from Ivory Coast totaled 1,075,849 tonnes (t), down 8% compared to the same period last year, according to provisional port statistics data. As for cotton, the volumes sold internationally are settling, at 83,776 t between January and the end of March, slipping by 1% compared to the beginning of 2020. Natural rubber is on the same pattern with shipments of 242,621 t between beginning of January and end of March 2021, i.e. 30% less than in January-March 2020. Shipments of cocoa products (powder, butter, chocolate) performed much better, totaling 223,921 t, i.e. an increase of 10% compared to the equivalent period October 2019-end March 2020.

Banks and Insurance

As part of the reform of the CFA franc started in December 2019, France launched the process of transferring 5 billion euros to the accounts of the Central Bank of West African States (BCEAO). Visiting Abidjan from April 29 to 30, Bruno Le Maire, the French Minister of Economy and Finance, reassured the Ivorian President Alassane Dramane Ouattara on the execution of the CFA franc reform agreements approved in December 2019. These agreements endorsed the end of the centralization of half of the BCEAO's foreign exchange reserves in the books of the Banque de France.
At the initiative of the African Development Bank (AfDB) and the International Fund for Agricultural Development (IFAD), a high-level dialogue brought together African and world leaders to urgently strengthen food systems within the framework efforts to overcome the pandemic and build the resilience of African countries. Exchanges between Heads of State, Ministers of Agriculture, Economy and Finance of the continent and other heads of pan-African and global institutions took place around the theme "Feeding Africa: leadership to intensify successful innovations.
The Ordinary General Assembly of the National Bank for Economic Development (BNDE) approved the result of the Bank which amounts to FCFA 2.573 billion. It is divided into 35% dividends and 65% reserves. The Bank's activity over the 2020 financial year ended with a total balance sheet amounting to 279 billion FCFA with an increase of 62.7 billion FCFA, i.e. + 29% compared to 2019. Loans to the customers and SFDs stand at 143 billion FCFA, they have increased over the 2020 financial year by 32 billion FCFA.

Governance

During an interview with France 24 and Radio France internationale (Rfi), the Beninese president addressed the issue of the total reopening of the borders between Benin and Nigeria. Referring to the actions carried out and those envisaged for the total reopening, the President of the Republic noted the administrative heaviness which could possibly drag in the rapid outcome of this file which has become a concern for the citizens of the two countries.

Financial crimes

The Sanctions Commission of the Prudential Control and Resolution Authority (ACPR) has fined Cardif Assurance Vie, the life insurance subsidiary of BNP Paribas, with a fine of 2.5 million euros. This is a reprimand due to “serious deficiencies” in its system for combating money laundering and the financing of terrorism.

Regional growth

Following the opening, on May 3, of the 29th extraordinary session of the Interparliamentary Committee of the West African Economic and Monetary Union (UEMOA), the Honorable Aka Véronique provided an update on the activities carried out during his four years of management. The institution has carried out several activities over the past four years. Among other things, "political lobbying" conducted with the high authorities of the Interparliamentary Committee for its maintenance as a parliamentary body of WAEMU. Also, within the framework of parliamentary diplomacy, the WAEMU Interparliamentary Committee has led several international offensives, notably by participating in high-level conferences.
The Council of Ministers of the West African Economic and Monetary Union (UEMOA) has appointed Nigerian Mamadou Diop as Vice-Governor of the Central Bank of West African States (BCEAO). He will occupy this position as of May 1, 2021, for a term of 5 years (2021-2025).
The Senegalese Mamadou Ndiaye passes the baton to the Togolese Badanam Patoki at the head of the Regional Council for Public Savings and Financial Markets (Crepmf). This appointment was made in application of the orientations of the Conference of Heads of State and Government of UEMOA, whose twenty-second ordinary session took place on March 25th.
The convergence pact, which should lead to the circulation of the Eco to replace the F CFA, has been suspended for two years. The decision was announced by the Burkinabé Minister of Economy, Finance and Development, Lassané Kaboré during the plenary session of the National Assembly held on May 4, 2021.