Foreign exchange market

The major currencies are moving in various trends this weekend. While the dollar is stabilizing, the pound remains at a two-month high against the euro. The ruble hit its highest against the dollar since June 11, at $0.0139 to the ruble, or 71.68 rubles to the dollar.

The Swiss National Bank (SNB) again stepped in to protect the franc. It accelerated its interventions on the currency market. Between April and the end of June, its interventions on the foreign exchange market amounted to 5.44 billion francs. According to data published Thursday by the issuing institute, this sum is significantly more than the 296 million francs invested in the first quarter. But the volume of interventions varies greatly.

Cryptocurrencies

The market is regaining a taste for the first cryptocurrency. While regulators remain a little more relaxed, the price of bitcoin is at its highest since May. This Wednesday, the cryptocurrency leader gained 5.8%. Around 3:20 p.m. GMT (5:20 p.m. in Paris), bitcoin gained 5.8% to 54,494 dollars, after climbing to 55,423 dollars. Since the beginning of the month, the volatile cryptocurrency has taken more than 30%.

The Central Bank of Nigeria has announced the postponement of the launch of the country's digital currency, eNaira. For good reason, the financial institution evokes the events planned for the 61st anniversary of the country's independence.

Money Market

The UMOA-Titres agency has published the provisional timetable for government securities issues for the fourth quarter of 2021. As such, the forecast volume of government securities issues amounts to 697 billion FCFA. The Director of the agency, Adrien Diouf informs in a note that this sum is composed of 392 billion of Support and Resilience bonds and 305 billion of Recovery bonds. In accordance with its issuance program, the State of Burkina Faso raised 43.746 billion FCFA in recovery bonds on October 6, 2021 on the financial market of the West African Monetary Union (UMOA).

On the CEMAC community money market, Cameroon made two issues. This envelope is made up of a share of assimilable treasury bonds (20 billion CFA francs) and treasury bonds (56.960 billion CFA francs). At the end of this auction operation, Cameroon is doing with an overall envelope of 76.960 billion CFA francs out of the 80 billion sought.

Stock market

The capitalization of the shares of the Regional Stock Exchange (BRVM) crosses 5600 billion FCFA, standing at 5600.106 billion FCFA against 5599.404 billion FCFA the day before. The capitalization of BRVM shares recorded an increase of 304.264 billion FCFA. That of the bond market fell by 49.638 billion FCFA to 7068.806 billion FCFA against 7118.444 billion FCFA on October 5, 2021. The total value of transactions stood at 315.099 million FCFA against 499.216 million FCFA the day before. The BRVM 10 index fell by 0.31% to 143.79 points against 144.23 points the day before. For its part, the BRVM Composite index recorded a slight increase of 0.05% to 186.15 points against 186.06 points the day before.

Like other stock exchanges around the world, the BRVM has joined the "RING THE BELL FOR FINANCIAL LITERACY" initiative as part of World Investor Week (WIW 2021). This initiative of the World Federation of Exchanges (WFE) and the International Organization of Securities Commissions (IOSCO – IOSCO) is a week-long global campaign aimed at raising awareness of the importance of financial education, investor protection and financial inclusion by ringing stock market bells.

Raw materials

Oil prices are on the rise again after an update from the US Department of Energy. Prices had opened sharply lower the day after the announcement of a larger than expected increase in US stocks. But, after statements by the Secretary of Energy, Jennifer Granholm, having been interpreted as a possible use of strategic reserves of the United States to thwart the rise in prices, oil prices immediately reacted, returning quickly to the green.

Nigeria has decided to invest heavily in palm oil processing. Thus, the first oil producer in Africa and the first economy of the continent in terms of GDP is preparing to impose itself in the palm oil sector. However, the palm oil industry is under fire from critics around the world, accused in particular of contributing to deforestation or the disappearance of community lands.

The state financial organization wants to be a privileged partner of the coffee-cocoa sector. As part of the 2021-2022 coffee-cocoa campaign, the National Investment Bank (Bni) announces an envelope of 125 billion FCfa for the benefit of actors in the sector.

Companies

The leaders of the African Rubber Plantation Company (SAPH) based in Abidjan have announced a sharp increase in net income after tax. This result stood at 8.056 billion FCFA in the first half of 2021 against 1.728 billion FCFA in the first half of 2020. The increase is therefore estimated at 6.328 billion FCFA.

The huge Facebook & Co outage caused more damage than expected. WhatsApp, Facebook and Instagram are experiencing major disruptions. The disruption affected all online connections to WhatsApp and Instagram: neither the app nor the website were accessible. A situation that has created a shortfall for Gsm operators around the world. For his part, the CEO of WhatsApp, Facebook and Instagram lost 7 billion dollars and fell 2 places in the ranking of billionaires in the world.

Banks and Insurance

The World Bank published its latest edition of the Africa's Pulse report on October 6, 2021. According to the financial institution, sub-Saharan Africa should emerge from the recession caused by the COVID-19 pandemic with an expected growth level of 3.3. % for 2021. But for that, significant additional funding will have to be deployed. World Bank experts expect growth to hover around 4% in 2022 and 2023, lagging in recovery compared to advanced economies and emerging markets, reflecting sluggish investment in sub-Saharan Africa.

Cooperation between Mali and the World Bank, altered since May (following the dismissal of those responsible for the transition) is resuming with the financing of several development projects. The $30 million financing agreement will make it possible to carry out road works to improve accessibility for rural populations in the regions of Sikasso and Koulikoro in the south. Bamako receives 3 other financings, bringing the cumulative amount to $237 million from the World Bank. The first agreement, in the amount of $52.5 million, is additional support to "finance operational costs for vaccination and the expanded vaccination program through the acquisition of equipment to strengthen the cold chain and of incinerators”. The 2 ^nd concerns the Community Recovery and Stabilization Project in the Sahel, benefiting from a $100 million facility. The third financing of $55 million relates to the Regional Electricity Access and Battery Energy Storage Project (BEST).

The Beninese subsidiary of the banking group Bank Of Africa (BOA) saw its net banking income (NBI) down by 708 million FCFA (1.062 million euros) at the end of the first half of 2021 compared to the same period of the year. 2020. BOA Benin leaders announced that the bank's NBI fell from 22.950 billion FCFA on June 30, 2020 to 22.242 billion FCFA a year later, a decline of 3.08%. Despite this decline, BOA Benin officials are of the opinion that their establishment still maintains its first place with 23% market share. Similarly, the Ivory Coast subsidiary published its net income which stood at 9.043 billion FCFA as of June 30, 2021 against 7.312 billion FCFA as of June 30, 2020, an increase of 1.730 billion FCFA. This result was obtained after taking into account by the bank a tax on industrial and commercial profits (BIC) of 420 million FCFA and a cost of risk which fell considerably (standing at 442 million against 2.342 billion as of June 30, 2020). Net banking income (NBI) recorded a slight increase of 2.37%, rising from 19.926 billion FCFA in the first half of 2020 to 20.399 billion FCFA a year later.

Thanks to the financial support of the European Investment Bank (EIB), Cameroon becomes a shareholder of the Trade Insurance Agency. This membership will enable it to benefit from ATI guarantees to support export development, attract more foreign investment and improve regional and international trade.

The insurance company NSIA and the mobile telephone company MTN undertake to provide MTN subscribers with a service enabling them to purchase insurance for their vehicles or travel insurance. The two partners launched on Tuesday, October 5, 2021 NSIA SONOYA which is a product of NSIA insurance that we have put in place to allow the various customers not to travel and to subscribe remotely. It is a product made via the internet. Thanks to this service, MTN subscribers, who have a mobile money account, can subscribe to NSIA SONOYA without having to travel and receive the contract in 2 hours in Conakry and the surrounding area.

Financial crimes

The “Pandora Papers” takes a global dive into the secrets of offshore finance. This is a new investigation by the International Consortium of Investigative Journalists (ICIJ), of which Le Monde is a partner. This journalistic investigation reveals the secrets of 300 public officials, 35 heads of state, 130 billionaires... This leak of confidential documents, source of the investigation carried out by "Le Monde" and the ICIJ, reveals that many heads of state and African governments hide their fortunes behind anonymous front companies. Among others: the family of former President Kenya, President Ali Bongo, Prime Minister Patrick Achi, in Chad, Zakaria Déby, brother of the current Chadian President, in Lebanon, the current Prime Minister, Najib Mikati.

The Global Organized Crime Index has released its World Report on Organized Crime Levels. According to the study, Africa is the second continent with the highest level of organized crime. The African continent has a score of 5.17 out of 10, ranking just behind Asia which has a score of 5.30. On the continent, East Africa is the region with the highest levels of organized crime, with a score of 5.66. In second place, we find West Africa with a score of 5.47, Central Africa (5.11), North Africa (4.86) and finally Southern Africa (4. 67).

According to a study by the American think tank Global financial integrity, organized crime alone generates between 1600 and 2200 billion dollars each year. Money flows estimated at 10% of global GDP. Corruption, drug trafficking or tax evasion, dirty money would generate revenues each year reaching up to the equivalent of 10% of the world's GDP.

British company NatWest pleaded guilty on Thursday to money laundering charges. She is accused of failing to prevent the laundering of nearly 400 million pounds ($544 million). The bank, which is 55% taxpayer-owned after a state bailout of more than £45billion during the financial crisis, told a London court it had pleaded guilty to three criminal charges of failing to oversee adequately accounts for its clients between 2012 and 2016. NatWest could be sentenced to around £340 million under sentencing guidelines.

Governance

Senegal has been rated A-/A2 by Bloomfield Investment Corporation. Bloomfield Investment Corporation President Stanislas Zézé reveals that Senegal has obtained a long-term investment rating of A- (low risk) and a short-term investment rating of A2 (low risk). The A- long-term investment rating reflects high credit quality. “The protective factors are good. However, the risk factors are more variable and more important in times of economic pressure,” explains Bloomfield. In the short term, an A2 rating means that the certainty of timely repayment is good. The factors that strengthen Senegal's rating are based in particular on a debt strategy oriented towards concessional debt, making it possible to limit the cost of debt and overall satisfactory budget execution despite the restrictive context in 2020.

Regional growth

The member countries of the Economic Community of West African States (ECOWAS) have adopted a new common strategy to fight against transboundary animal diseases. Thus, the Community announces a regional emergency fund to support the initiative. It is a regional mechanism for preventing and combating zoonoses, such as avian flu, foot-and-mouth disease, peste des petits ruminants and rinderpest, which affect sectors such as livestock.

Through its patrol vessel HMS Trent, the United Kingdom is involved in the fight against the incidence of piracy in the Gulf of Guinea. The British Royal Navy patrol vessel HMS Trent sets sail for the Gulf of Guinea to undertake security patrols and a mission in support of allies in West Africa. Once in the Gulf of Guinea, after a period of maintenance and a crew rotation, the River-class patrol vessel will visit Nigeria, Ghana, Senegal, Gambia and Cape Verde.