Kenya’s shilling will probably weaken further over the next five weeks after hitting a 13-month low yesterday as businesses accumulate dollars on concern March 4 elections may spark violence, according to a Bloomberg News survey of traders and analysts.
South Africa’s decision to replace nuts and lentils with vodka and cheese in the consumer price index is damping chances of slower inflation and a recovery for the world’s worst-performing bond market.
Namibia’s debut rand bond sale, the first by a foreign government, will probably prompt other African nations to sell bonds in the South African currency, lured by an investment industry overseeing $600 billion of assets.
South African government bonds were the worst performers last week as spreading labor unrest, the first rating downgrade since apartheid and a widening trade deficit overshadowed the debt’s inclusion in a benchmark index.
The rand surged to a two-week high against the dollar after South African Finance Minister Pravin Gordhan indicated the government may intervene in the foreign- exchange market to reduce swings in the currency.