Foreign exchange market

While the ECB was more cautious, the euro fell against the dollar on Friday. A caution that contrasts with the prospect of a tightening of American monetary policy, while inflation continued to accelerate in January in the United States to reach 7.5% over one year, a record in nearly 40 years. . After jumping initially on Thursday, the greenback fell against the euro to approach the symbolic threshold of 1.15 dollars for one euro, which has not been crossed since October. But since this bout of weakness, the dollar has recovered. As a result of these hesitations, the euro-dollar parity is moving more or less to its level at the start of the year (+0.13% for the euro).

Attijari Global Research (AGR) revised upwards its forecasts for the USD/MAD pair over 1, 2 and 3 months, taking into account the liquidity conditions of the dirham. The dirham should depreciate over the same horizons, against the euro.

Cryptocurrencies

Coinbase removes cryptocurrency links after rug pull warnings. The pages, which contained a disclaimer that the information did not constitute investment advice and that the exchange was not responsible for "errors and delays", were created automatically from information carried by the data site CoinMarketCap. A page removed by Coinbase featured DeFi100 and urged users to check out CoinMarketCap for where to buy it.

Stock markets

The liquidity contract becomes mandatory at the Central African Stock Exchange (BVMAC). This is one of the new listing conditions. The liquidity of a security is measured by the volume of trade on this security, a share being liquid when the market conditions make it possible to buy and sell this share quickly and without impacting the price because the higher the turnover rate, the more the action is considered liquid.

At the end of the trading session of this Wednesday, February 9, 2022, the Regional Stock Exchange (BRVM) continued its rise initiated on Tuesday. The market capitalization of the equity market recorded an increase of 45.505 billion FCFA to 6206.733 billion FCFA, while that of the bond market ended the trading session down 9.254 billion FCFA, settling at 7494, 603 billion FCFA. The total value of transactions is still above 2 billion, standing at 2.030 billion FCFA against 2.727 billion FCFA previously. The composite index recorded an increase of 0.74% (after 0.72% the day before) to 206.19 points against 204.68 points previously. As for the BRVM 10 index, it also recorded an increase of 0.74% (after 0.87% the day before) to 157.49 points against 156.54 points previously.

Money Market

Togo was on the regional financial market on Friday, February 4, 2022. At the end of this third exit on the Public Securities market in the WAEMU zone, on behalf of this year, the country collected 35 billion FCFA. According to the Agence UMOA-Titres, this is an issue of assimilable treasury bonds (OAT) for a maturity of 120 months (10 years) with an interest rate of 5.9%.

On February 8, 2022, Côte d'Ivoire raised 60.050 billion FCFA. The issue by auction of 182-day and 364-day equivalent treasury bills (BAT) recorded more than 239% coverage rate. According to the report drawn up by UMOA-Titres, while the issuer only solicited 60 billion FCFA, it received as bids a total amount of 143.443 billion FCFA.

The Public Treasury of Niger raised this February 10, 2022 an amount of 33 billion FCFA on the financial market of the West African Monetary Union (UMOA). It was at the end of its issue by auction of assimilable treasury bonds (BAT) with a maturity of 364 days, organized in partnership with UMOA-Titres based in Dakar. This fundraising responds to the concerns of the Nigerien authorities to cover the financing needs of the State budget.

The Democratic Republic of Congo raises approximately USD 52.5 million in indexed Treasury Bonds on the local market. Indeed, the State launched, on February 1, 2022, indexed Treasury Bonds which made it possible to raise 105 billion CDF (approximately 52.5 million USD) on the local financial market. This amount represents a coverage rate of 110%, with bank bids having reached CDF 165 billion against the proposed 150 billion.

The weekly dashboard of operations of the treasury securities market of the Economic Community of Central African States (Cemac), for the period from February 7 to 11, 2022 indicates that the Gabonese Public Treasury will have to settle a total slate of 12.5 billion FCFA on February 11, 2022. This debt was contracted by issuing 26-week treasury bonds (BTA) on this same market. Gabon carried out on February 9, a new issue of Treasury bonds (BTA) at 26 weeks, to be able to mobilize an envelope of 12 billion FCFA.

Raw materials

Nothing is holding back the upward pressure on the oil market. While OPEC + has programmed a new increase of 400,000 barrels per day for the month of March, the oil markets have chained their seventh consecutive week of increases since January 1, 2022. Driven by optimistic forecasts on the demand for black gold, combined with still limited supply in a tight market, oil prices rose slightly on Friday. Around 11:00 GMT (12:00 CET), the price of a barrel of Brent North Sea oil for April delivery rose 0.54% to $91.90. In New York, a barrel of West Texas Intermediate (WTI) for delivery in March took 0.68% to 90.49 dollars.

As a prelude to the official launch of the 2022 campaign for the cashew sector, the Cotton and Cashew Council carried out an awareness-raising mission for the various players in the sector in the Worodougou and Béré regions. On the occasion, the ambitions of this new campaign were unveiled. According to Dr Ouattara Mariam, director of production at the Cotton and Cashew Council, the country hopes to reach one million tonnes in 2022.

Aluminum prices are stabilizing above 3000 USD, thanks to the increase in Russian gas deliveries to Europe. On the soft commodities side, wheat and corn prices fell in Chicago to 771 and 636 cents per bushel respectively. Cocoa, on the other hand, continued to advance at 2668 USD per ton.

With 3.7 million m3 in 2021, Gabon turns out to be the largest wood producer in the CEMAC zone. The country has boosted its wood production over the past decade, helped in this direction by the activity of the SEZ of Nkok. According to reports from the General Directorate of the French Treasury, Gabon has gone from producing 1.9 million m3 of wood in 2012 to 3.7 million m3 in 2021, almost doubling in a decade.

Companies

The international rating agency Moody's has announced its entry into the capital of Global Credit Rating Company (GRC). Moody's intends to expand its footprint in Africa with the acquisition of 51% of the capital of GRC. By taking a majority stake in the African leader in financial rating, Moody's intends to participate in the development of financial markets in Africa and thus demonstrate its interest in this area.

The Investisseurs & Partenaires (I&P) investment fund recently welcomed into its portfolio its first Togolese company, Lomé Business School, a university establishment offering training in management (marketing, finance, logistics, human resources) and IT management. I&P Acceleration in the Sahel is a general program, which pays particular attention to companies in the education sector working to improve the professional integration of young Africans.

Meridian Port Services (MPS) has invested USD 53.31 million for the capacity building of Terminal 3 of the Port of Tema. The company acquired 15 new gantries, including 3 quay gantries (STS) and 12 park gantries (eRTG). The business agreement between MPS and Shanghai Zhenhua Heavy Industries Company Limited (ZPMC) aims to continuously improve its services for the benefit of the port community and Ghana.

The mining company GoviEx Uranium has announced the launch of a 6,000 meter drilling program at the Falea polymetals project. The Falea project could become in a few years one of the mines supplying the world market. Because most forecasts expect an increase in demand for uranium and copper due to the energy transition.

In order to strengthen its network in Nigeria, the multinational Globacom has entered into a partnership agreement with Ceragon Networks. This agreement aims to offer the Nigerian telephone operator an extension of its network, but also to have cutting-edge technology.

Banks and Insurance

At the end of a four-day visit to Ghana, the World Bank's Regional Vice-President for West and Central Africa, Ousmane Diagana announced that the World Bank has planned a minimum of one billion dollars to drive job creation and inclusive growth in Ghana. Ousmane Diagana said that this new four-year scheme will support the energy, education, agriculture and health sectors in order to create more jobs.

The work of the Workshop for the restitution of the study on the creation of an Investment and Guarantee Bank (BIG) in the DRC was launched on Thursday, February 10 at the Hôtel du Rivière. This is an important reform aimed at guaranteeing public and private investment with a view to promoting the country's economic development. The Investment and Guarantee Bank, once set up, will be an important tool at the service of the economic and social development of the DRC which suffers from a deficit of lack of financing of the economy.

The air sector is considered one of the logistical pillars of the African Continental Free Trade Area. In order to boost air transport, Afreximbank announces that it will soon launch an aircraft leasing platform. The Bank also says it is in discussion with African companies to reduce complexity in payments, and promote the opening of new airlines on the continent.

Proparco and afriland first bank join hands to support the financing of imports in Cameroon. Thus, Proparco grants a Trade Finance guarantee of 15 million euros to Afriland First Bank. This first partnership between the two institutions is part of the Trade Finance transaction guarantee program launched in 2017 by Proparco to support the development of trade in its areas of intervention.

The pan-African quarterly magazine of the insurance and reinsurance sector was presented over the weekend by Colette Amorissani, promoter of the said book. Afrisk'Assur aims to contribute to a better popularization of economic activities, as well as actors in the insurance and reinsurance sector of the African continent.

Financial crimes

According to a Tax Justice Network, Public Service International and Global Alliance for tax justice report, tax losses due to tax avoidance by the wealthy and tax evasion by multinational corporations have caused Africa to lose a amount estimated at $17.1 billion last year, 2021. In CFA francs, this would correspond to 9750 billion CFA francs. Of this sum, 211 million dollars, or 21 billion FCFA, come from Benin. In UEMOA, the record is held by Senegal with 799 million US dollars.

For money laundering via money transfers from Montluçon (Allier) to Côte d'Ivoire, Hamed Dosso, an 18-year-old young man, was sentenced in Montluçon to 18 months in prison. Once his sentence has been exhausted, he will be expelled from French territory.

The Congolese authorities accuse the local subsidiary of the Cameroonian bank Afriland First Bank of not paying back to the Treasury all the funds collected under the RLT, which taxes import-export operations of containers of goods. Thus, the bank would have withheld funds from the collection of a tax known as the "terrestrial logistics fee". She was summoned by the Congolese authorities to return the millions of tax on imports and exports. In total, this sum would be around 7.5 million dollars.

Credit Suisse and four people are accused of aggravated laundering of funds from cocaine trafficking. Their trial at the Federal Criminal Court opened on February 7, 2022 in Bellinzona to last four weeks. The first day of the trial was the occasion of a battle around the prescription or not of certain facts after an investigation which lasted nearly fifteen years.

For suspicion of fraudulent customer accounts, the leaders of the German online bank N26 find themselves at the heart of an investigation. Customers complained that reported accounts were not blocked in a timely manner. German financial regulator BaFin fined N26 for breaching money laundering controls in September.

Governance

The rating agency, Moody's downgrades Ghana from B3 to Caa1 with a negative outlook. The country of Nana Akufo-Addo is now rated Caa1, at the same level as Burkina Faso. Moody's estimates that interest payments will absorb more than half of Ghana's revenue over the medium term.

Also, Moody's decides to keep Mali under surveillance. The country's rating was downgraded on February 4, 2022 from Caa1 to Caa2 on the Moody's scale. The country's rating remains more than ever linked to the possible negotiations of the junta with ECOWAS.

Regional growth

The third edition of the conference of the Pan-African Federation of Accountants of Africa (PAFA) was held this week in Lomé, the Togolese capital. The conference aims to “analyze and review key public financial management reforms” in these states and to “glimpse the long-term implications of governments’ responses to COVID-19”. The central theme is “Reform of public finance management in Africa, the agenda of French-speaking countries”.