<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Sept 13 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks slipped on Wednesday as a spike in oil prices fuelled fears of persistent price pressures ahead of a key U.S. inflation reading that could determine whether the Federal Reserve is close to the end of its rate hiking cycle.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was down 0.2% by 0906 GMT, falling for the second straight session.



After a strong start to the week on optimism around upbeat economic data from China, emerging market stocks have come under pressure in the run-up to the U.S. consumer price index reading for August as any upside in inflation expectations could add to worries that rates will stay higher for longer.



The data, expected at 8:30 a.m. ET (1230 GMT) is likely to show annual CPI rose about 3.6% last month, a Reuters poll showed, after climbing 3.2% in July, though core inflation is expected to have eased.



A stronger-than-expected core inflation reading &#8220;will probably lay the groundwork for a reasonably hawkish FOMC meeting this time next week, where despite unchanged rates, the Fed will (through its dot plots) hold out the threat of one further hike this year,&#8221; ING strategists said in a note.



Clouding the outlook for inflation further, oil prices held on to a 10-month peak hit the previous day, with the recent shutdowns of oil ports in Libya adding to supply concerns. O/R



On Wednesday, equities in China&nbsp;.CSI300&nbsp;fell 0.6% while the yuan&nbsp;CNY=CFXS&nbsp;firmed against the dollar.



China&#8217;s central bank will boost demand and support a modest rebound in prices, the Financial News, a publication run by the People&#8217;s Bank of China (PBOC) said on Wednesday, citing an unnamed senior central bank official.



Amundi, Europe&#8217;s largest asset manager, said on Wednesday it had turned neutral on Chinese equities in the latest sign of a shift in investor sentiment towards the world&#8217;s second biggest economy.



Broader EM currencies&nbsp;.MIEM00000CUS&nbsp;were flat, with the South African rand&nbsp;ZAR=&nbsp;down 0.2%, while the Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;weakened past 96 to the dollar, pulling back from near six-week highs.



The Hungarian forint&nbsp;EURHUF=R&nbsp;was up 0.1% against the euro ahead of minutes from the Hungarian central bank&#8217;s August policy meeting where it cut its one-day deposit rate by 100 basis points to 14.00%.



The Romanian leu EURRON= firmed 0.2% versus the euro after data showed inflation stood at 9.43% in August, above market expectations of 9.15%.



In other news, global ratings agency Moody&#8217;s cut its outlook on Gabon to &#8220;negative&#8221; from &#8220;stable&#8221;, citing heightened political and government liquidity risks following last month&#8217;s coup.



(Reporting by Amruta Khandekar and Johann M Cherian in Bengaluru; Editing by Jacqueline Wong)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Stocks fall for second day on jitters ahead of US inflation

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Emerging market equities sank to two-month lows on Monday, as the latest stimulus measures from China disappointed investors, while Turkish banks slumped after the central bank rolled back a scheme that protects deposits against falls in the lira.



The MSCI&#8217;s EM equities index&nbsp;.MSCIEF&nbsp;fell 0.4% &#8211; its eighth straight day in the red and longest losing streak since April 2022.



Heavyweight stocks of Shanghai .SSEC, .CSI300 and Hong Kong .HSI slumped more than 1%, with China&#8217;s blue-chip index .CSI300 hitting a nine-month low after the country&#8217;s central bank cut its one-year benchmark lending rate by a smaller-than-expected 10 basis points and kept the five-year rate unchanged. .SS



The yuan&nbsp;CNH=D3&nbsp;weakened by about 0.2% to 7.32 per dollar in offshore trading.



&#8220;At the current juncture, deeper rate cuts and RRR cuts could be seen as concrete moves that are necessary to help restore confidence, even though they may not lead to stronger credit and economic growth soon,&#8221; Commerzbank strategist Ulrich Leuchtmann said in a note.



&#8220;Admittedly, rate cuts will lead to larger interest rate differentials vis-a-vis the U.S. and most major economies, posing further downward pressure on the CNY initially. However, should more forceful stimulus be seen as effective in putting a floor to economic growth, the pressure on the CNY could also be alleviated.&#8221;



Most other Asian stock markets were mixed, though equities in central Europe&nbsp;.WIG20,&nbsp;.BETI&nbsp;and South&nbsp;Africa&nbsp;.JTOPI&nbsp;rebounded after losses last week.



Turkish banks .XBANK fell 3.7%, lagging the country&#8217;s benchmark index .XU100, after the central bank began rolling back a costly scheme that protects lira deposits from FX depreciation, marking another move toward more orthodox policies.



The central bank is widely expected to raise interest rates later this week, its third hike under Governor Hafize Gaye Erkan, who has vowed to continue with &#8220;gradual and steady rate hikes&#8221;. The central bank last week forecast year-end inflation at about 60%, up from 43.8% in July.



Further, investors will keep a close eye on the central bankers gathering at Jackson Hole, Wyoming, later this week, for clues on where U.S. interest rates will settle after a series of aggressive hikes.



EM currencies have come under pressure recently due to surging Treasury yields and a stronger dollar following signs of resilience in the U.S. economy and bets that borrowing costs there could remain elevated for longer.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;slid to a fresh record low of 27.165 per dollar, but most other currencies stabilised.



Focus will also be on a summit of the BRICS group of major emerging economies &#8211; Brazil, Russia, India, China and South&nbsp;Africa&nbsp;&#8211; in Johannesburg between Aug. 22 and Aug. 24.



(Reporting by Sruthi Shankar in Bengaluru; editing by Eileen Soreng)

World map with charts and graphs as symbols of global finance

China, Turkish banks send EM stocks on longest losing run in over a year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Aug 14 (Reuters)&nbsp;&#8211;&nbsp;The Russian rouble slid past the psychologically important 100 per U.S. dollar on Monday, while China and Hong Kong stocks fell after disappointing credit data added to worries about a slowdown in the world&#8217;s second-largest economy.



The roubleRUBUTSTN=MCX was last down 100.78 against the dollar, after hitting a 17-month low. The currency has lost a quarter of its value since President Vladimir Putin sent troops into Ukraine in February 2022.



&#8220;The rouble has been underperforming all this year, partly on lower oil revenues but also because of capital flight,&#8221; said Michael Wang, deputy portfolio manager at Mirabaud Asset Management.



&#8220;The most recent leg weaker was likely triggered by the central bank&#8217;s announcement last week that it would stop buying foreign currency on the domestic market.&#8221;



Putin&#8217;s economic advisor Maxim Oreshkin said in an op-ed for the TASS news agency that the Kremlin wanted a strong rouble and that loose monetary policy was the main reason behind the Russian currency&#8217;s weakening.



China&#8217;s blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC fell 0.7% and 0.3% respectively, after data showed China&#8217;s new bank loans tumbled in July and other key credit gauges also weakened.



Furthermore, two Chinese listed companies said they had not received payment on maturing investment products from Zhongrong International Trust, adding to stress in a financial market already roiled by a property sector downturn.



China&#8217;s Country Garden2007.HK, the country&#8217;s top private property developer, shed 17.4% on suspending trading of its 11 onshore bonds from Monday.



Overall, MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.9%, while the currencies index&nbsp;.MIEM00000CUS&nbsp;slipped 0.2%.



Shares of India&#8217;s Adani group companies slid 1% to 3% after Deloitte resigned as auditor of Adani Ports APSE.NS, the first such move at the conglomerate since U.S. short-seller Hindenburg&#8217;s report on the company in January.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;traded at 27.0525 against the dollar, weakening from a closing level of 26.9 on Friday.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;slipped 0.1% against the euro, lagging central and eastern European peers, after data showed consumer prices in the 12 months to July rose 10.8%.



In Latin America, Argentina&#8217;s markets face an election hangover after a shock primary election win for far-right libertarian Javier Milei, who wants to axe the central bank and dollarize the economy, shook up the race towards general elections in October.



Investment bank JPMorgan&#8217;s analysts recommended staying &#8220;market weight&#8221; on Argentina&#8217;s government bonds on Monday.



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Varun H K)

Russian rouble falls past 100 vs dollar; China woes linger

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market stocks and currencies fell on Tuesday, on concerns over continued slowdown in second-largest economy China following weak trade data, while Hungary&#8217;s forint gained as traders stuck to their bets of a gradual policy easing.



China&#8217;s blue-chips .CSI300 and Hang Seng indexes .HSI fell 0.3% and 1.8% respectively, after weak data on July imports and exports reinforced fears of further economic slowdown in third quarter, heightening pressure for fresh stimulus.



Chinese developers .HSMPI also fell 4.8%, after Country Garden&#8217;s 2007.HKfailure to pay two dollar bond coupons due on Aug. 6 confirmed fears of the nation&#8217;s biggest privately owned developer slipping into repayment troubles.



The MSCI index for EM stocks&nbsp;.MSCIEF&nbsp;lost 1.0%, touching a three-week low intraday, with traders keenly awaiting U.S. and China inflation prints.



The MSCI EM currencies gauge&nbsp;.MIEM00000CUS&nbsp;fell 0.3%, hitting a near one-month low during the day, with China&#8217;s yuan&nbsp;CNY=&nbsp;slipping 0.3% against the U.S. dollar.



In Central and East Europe, Hungary&#8217;s headline inflation slowed to an annual 17.6% in July, matching expectations, with Economic Development Minister Marton Nagy noting that the rate will fall to single digits by October.



Hungary&#8217;s forint&nbsp;EURHUF=,&nbsp;however,&nbsp;gained 0.4% against the euro ahead of the July policy meeting minutes&nbsp;due&nbsp;on Wednesday.



&#8220;The July inflation indicator is unlikely to have a significant impact on monetary policy,&#8221; said Peter Virovacz, senior economist at ING in Budapest.



&#8220;Primary, post-data market reactions suggest that investors are dismissive of the possibility of more aggressive rate cuts in response to the disinflation seen&#8230; perhaps why we have seen the forint begin to strengthen again.&#8221;



Romania&#8217;s leu EURRON= remained unchanged, largely holding on to Monday&#8217;s action, after the central bank kept its benchmark rate on hold at 7%.



Meanwhile, Polish central banker Przemyslaw Litwiniuk said cutting rates this autumn would be a mistake amid speculation that policy easing could be just around the corner.



While the Polish zloty&nbsp;EURPLN=&nbsp;slipped 0.2%, Czech crown&nbsp;EURCZK=&nbsp;was&nbsp;flat.



Traders will also keep an eye out for Russian, Czech and Romanian inflation data due this week.



Russia&#8217;s rouble weakened past 96-per-dollar, heading back towards a more than 16-month low, hampered by strong local demand for foreign currency.



Meanwhile, traders monitored developments around the jailing of Pakistan&#8217;s former premier Imran Khan, whose lawyer said he challenged his conviction on graft charges in a high court on Tuesday.



The Pakistani rupee&nbsp;PKR=&nbsp;and stocks&nbsp;.KSE&nbsp;were down 0.9% and 0.8%, respectively.



Pakistan International Airlines PIAa.PSX, however, jumped 9% on the government&#8217;s plan to privatise the loss-making national carrier.



(Reporting by Ankika Biswas in Bengaluru; Editing by Varun H K)

Stocks, FX crumble as weak China trade data bolster slowdown fears

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-820x547.jpeg" alt="" class="wp-image-426544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



India’s rice export ban could ripple across global rice markets — and millions are expected to be impacted, with Asian and African consumers set to bear the biggest brunt.



India, the world’s largest rice exporter, banned the exports of non-basmati white rice on Jul. 20, as the government sought to tame surging domestic food prices and “ensure adequate domestic availability at reasonable prices.”



The country accounts for more than 40% of the global rice trade.



“Malaysia appears to be the most vulnerable according to our analysis,” Barclays said in a recent report, highlighting the country’s sizable reliance on Indian rice.



“It imports a substantial portion of its rice supply, and India accounts for a relatively large share of its rice imports,” the analysts wrote.&nbsp;



Singapore is likely to be affected as well, with the report showing that India makes up around 30% of the city state’s rice imports.



However, Barclays noted that Singapore is largely dependent on imports of food in general, not just rice. The country is currently in the midst of seeking exemptions from India’s ban.



Rice prices are currently hovering at decade highs, with El Nino putting further risks on global production in other major Asian rice producers such as Thailand, Pakistan and Vietnam.



Barclays pointed out that Philippines would be the “most exposed to a rise in global rice prices,” given how the weighting of rice is highest in the country’s CPI basket. However, a large bulk of the Southeast Asian nation’s rice imports comes from Vietnam.



<h2 class="wp-block-heading" id="h-other-affected-regions"><a></a>Other affected regions</h2>



Asia is not the only region hit by India’s rice export ban, many African and Middle East nations are also vulnerable.



The markets highly exposed to India’s export restrictions are concentrated in Sub-Saharan Africa and in the Middle East and North Africa (MENA) region, said BMI, a Fitch Solutions research unit. The firm cited Djibouti, Liberia, Qatar, the Gambia, and Kuwait as being the “most exposed.”&nbsp;



India’s withdrawal of non-basmati white rice, comes on the heels of last September’s ban on shipments of broken rice. That means up to 40% of India’s rice exports are now offline, according to BMI forecasts.



This is not India’s first time imposing an export ban on non-basmati rice, but the impact this time could be more far-reaching than before.



In October 2007, India imposed a ban on non-basmati exports, only to temporarily lift the ban and impose it again in April 2008, sending prices almost 30% higher to stand at the record high of $22.43 per hundredweight (cwt). 



Prices tripled in the span of six months, according to an agricultural research company, the International Potato Center (CIP).&nbsp;



Samarendu Mohanty, Asian regional director at CIP, noted that India was not a major player in global exports of non-basmati rice back then, and the current ban has “a more far-reaching impact” than 16 years ago.



He added that the magnitude of the ban would depend on how other rice importers and exporters react.



<h2 class="wp-block-heading"><a></a>‘Possible mayhem’ in markets?</h2>



If major rice exporters like Vietnam and Cambodia impose their own form of export restrictions, and significant importers like Indonesia and Malaysia scramble to stockpile, the world will be looking at “possible mayhem in the rice market,” Mohanty said.



He cautioned that it could even be worse than the aftermath in 2007.



“The scale of people impacted by Indian rice ban will be in millions,” said Mohanty, adding that poorer consumers in India’s neighbors, particularly Bangladesh and Nepal will be the hardest hit.



“There is very low probability of this export ban being lifted,” Mohanty said, adding that the ban is here to stay at least until India’s general elections in April next year.



The South Asian nation is currently wrestling with high vegetable, fruit and grain prices, a sticking issue which could hurt the election prospects of Prime Minister Narendra Modi.



India’s inflation rose to 4.8% in June on the back of soaring food prices — still within the central bank’s&nbsp;inflation target of between 2% and 6%.



However, inflation “threatens to come in at 6.5% in July,” HSBC estimated in a report dated July 24.



HSBC economists cautioned that extreme weather events could further put a strain on crop output.



“If shipments fall, there could be global price implications, spilling over into wheat, which is a part-substitute,” the bank noted. The economists said cereal prices are already rising both domestically and globally, with the latter also affected by the Black Sea grain deal.



Wheat prices jumped after Russia withdrew from the Black Sea grain deal.



Under the agreement, Moscow agreed to allow Ukraine to continue to export grain in a bid to prevent a global food crisis following the war on Ukraine.



But the Kremlin pulled out of the deal in July, claiming promises made to Russia under the deal were not met.

107279962-1690905799907-gettyimages-1513202449-INDIA-ASSAM-NAGAON-PADDY

India’s rice export ban to hurt millions globally. These countries will be the worst hit

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



July 31 (Reuters)&nbsp;&#8211;&nbsp;Hong Kong equities boosted gains in the emerging market stock index on Monday, setting the stage for a monthly advance, while traders kept an eye out for political unrest and a monetary policy decision in Pakistan and Russia&#8217;s geopolitical tensions.



Tech .HSTECH and real estate .HSMPI stocks led a Hong Kong rally on hopes of further measures following weak manufacturing data, aiding a 0.2% gain in the MSCI&#8217;s gauge for EM stocks .MSCIEF.



However, the MSCI gauge has been resilient with a near-6% jump in July, eyeing its best month this year, even though evidences of a rocky post-pandemic recovery, property market troubles and scepticism around China&#8217;s policy measures have sent its stocks on a turbulent ride.



&#8220;Stimulus hopes gripped markets last week following a more supportive tone in a key Politburo meeting, but we are not convinced that this is the turning point markets are hoping for,&#8221; Tellimer analysts noted.



Other notable EM performers pointed out by analysts included South African shares amid signs of softer inflation and possible rate cuts, Turkey on an investment deal with Abu Dhabi and central bank developments and Pakistan after its IMF deal.



Pakistan&#8217;s benchmark stock index .KSE rose as much as 2% on Monday to pass 48,000 points for the first time since August 2021, data showed.



Traders monitored Pakistan&#8217;s unrest ahead of a general election due late this year, including a suicide bombing, while also awaiting a policy decision later in the day.



Meanwhile, the MSCI EM currencies index&nbsp;.MIEM00000CUS&nbsp;steadied as it was set for monthly gains as the dollar headed for a July decline amid bets that the Federal Reserve&#8217;s policy tightening concluded with last week&#8217;s 25-basis-point rate hike.



South Africa&#8217;s rand&nbsp;ZARUSD=R&nbsp;was set for its best month since January 2019. Deutsche Bank analysts retained their constructive view on the currency given their bearish stance on the dollar, while flagging fiscal risks into the October budget.



The crown EURCZK= gained 0.5% against the euro after preliminary data revealed the Czech economy notched slight quarterly growth in the second quarter, showing recovery signs.



A report showed Poland&#8217;s central banker Przemyslaw Litwiniuk acknowledging still-high inflation and no reason to think about near-term rate cuts.



Data, however, showed Polish inflation eased more than expected in July, boosting chances of a rate cut as soon as September. The zloty EURPLN= was flat against the euro.



The Russian rouble RUBUTSTN=MCX hit a more than three-week low against the dollar as a favourable tax period passed and after drone attacks in the heart of Moscow damaged two office buildings in the Moskva-Citi business district.



Elsewhere, rating agency Fitch upgraded Latvia and Armenia, it downgraded Estonia.



(Reporting by Ankika Biswas in Bangaluru)

Stock market report. 3d illustration

Stocks, currencies eye monthly gains; Pakistan rate decision awaited

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-820x535.jpg" alt="" class="wp-image-426420" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-1536x1002.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/O7FDLGIGURL2RMKM6ZRNN6FPEU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Labourers unload rice bags from a supply truck at India&#8217;s main rice port at Kakinada Anchorage in the southern state of Andhra Pradesh, India, September 2, 2021. Picture taken September 2, 2021. REUTERS/Rajendra Jadhav/File Photo</figcaption></figure>



SINGAPORE, July 26 (Reuters)&nbsp;&#8211;&nbsp;Global rice importers are likely to seek direct deals with governments in exporting countries as India&#8217;s ban on shipments of a key variety is squeezing supplies and igniting concerns over food security.



Buyers from Africa to Asia are likely to scramble for rice shipments as supplies tighten in coming months following India&#8217;s decision last week to ban non-basmati white rice exports.



The ban will cut availability of the staple on world markets by about a fifth, traders and analysts said, and could lead to importers seeking more government-to-government deals to overcome shortages and&nbsp;tame spiralling prices.



&#8220;Export restrictions inherently reduce trust in the dependability of international trade,&#8221; said Shirley Mustafa, rice market analyst at the U.N.&#8217;s Food and Agriculture Organisation (FAO).



&#8220;Thus, they could result in importing countries looking at government-to-government deals to ensure supplies.&#8221;



While announcing its export ban last week, India has left the door ajar for such deals, saying that it will consider meeting the requirements of countries in need of rice supplies.



<h2 class="wp-block-heading" id="h-india-s-government-deals">INDIA&#8217;S GOVERNMENT DEALS</h2>



Last September, India banned exports of broken rice in a bid to cool domestic prices, but since then official data shows the country approved sales of around one million metric tons of broken rice to Indonesia, Senegal, Gambia, Mali and Ethiopia.



&#8220;The current ban excludes government-to-government sales, and it remains within the government&#8217;s prerogative,&#8221; said B.V. Krishna Rao, president of the Rice Exporters Association.



&#8220;A decision will be made based on the needs of importing countries and the supply situation in the local market.&#8221;



African buyers are likely to approach the Indian government for rice sales, and Asian importers such as Indonesia and the Philippines could sign&nbsp;government-to-government&nbsp;contracts with the region&#8217;s top exporters Thailand and Vietnam, traders said.



Indonesia has signed an agreement with the Indian government to potentially import one million metric tons of rice if the El Nino weather pattern hits its domestic supplies.



India last month approved wheat and broken rice exports to a few countries that had requested shipments of grains.



Indonesia&#8217;s National Food Agency (NFA) said that deals the country has made since end of last year are sufficient for now, while the National Food Authority in the Philippines can import rice upon approval by the president in an emergency situation.



India has ample stocks as of now to meet such requests, while Vietnam is due to start harvesting its main crop, analysts said.



&#8220;India&#8217;s government stocks of non-basmati rice are ample, standing at around 41 million tonnes on July 1,&#8221; FAO&#8217;s Mustafa said. &#8220;So, they could service the needs of both domestic public distribution and government level trades.&#8221;



(Reporting by Naveen Thukral; Additional reporting by Rajendra Jadhav in Mumbai, Enrico Dela Cruz In Manila and Dewi Kurniawati in Jakarta; Editing by Simon Cameron-Moore)

FILE PHOTO: Labourers unload rice bags from a supply truck at India’s main rice port at Kakinada Anchorage

Global rice market set for government deals as India’s ban curbs supplies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



July 25 (Reuters) &#8211; A rally in Chinese equities on vows of economic support lifted the emerging market stocks index to a one-month high on Tuesday, while the furore in Israel over the government pushing through judicial changes spurred selling in the country&#8217;s markets.



China&#8217;s blue chips index .CSI, broader benchmark index .SSEC and Hong Kong&#8217;s Hang Seng .HSI soared between 2.1% and 4.1% after top leaders pledged to step up policy support to boost domestic demand amid a rocky post-COVID recovery.



The MSCI gauge for EM stocks .MSCIEF gained 1.8%, and was set for its biggest one-day percentage gain in nearly two months.



China&#8217;s property developers&#8217; shares and bonds also enjoyed strong buying, with the sector&#8217;s giant Country Garden 2007.HK and its management unit Country Garden Services 6098.HK rebounding 18.3% and 26.5%, respectively.



Meanwhile, analysts&#8217; opinions on the significance of the July Politburo meeting were divided, with most, however, acknowledging a notable change in tone to support the beaten-down real estate market.



&#8220;More stimulus is on the way, but it will probably be just enough for the economy to meet the &#8216;around 5%&#8217; official target,&#8221; said Tommy Wu, senior China economist at Commerzbank.



The MSCI index for EM currencies .MIEM00000CUS gained 0.3%, with the yuan CNY= rising 0.6%, also aided by major Chinese state-owned banks selling U.S. dollars in both onshore and offshore spot markets, Reuters reported.



Meanwhile, the shekel ILS= touched a two-week low against the greenback, while Tel Aviv share index .TA125 was on track to log its steepest two-day decline since mid March.



Israel&#8217;s parliament on Monday ratified the first bill of a judicial overhaul sought by Prime Minister Benjamin Netanyahu, after last-gasp compromise efforts collapsed and failed to ease a constitutional crisis that has been convulsing the country for months.



&#8220;We are in for a prolonged period of political and economic uncertainty… the protests are not going to end just because the vote was won in parliament,&#8221; said Stuart Cole, chief macro economist at Equiti Capital.



&#8220;Investors will be looking to offload Israeli assets and move capital out of the country given that there is no obvious end in sight to the domestic turmoil.&#8221;



Ghana&#8217;s central bank on Monday called for tighter fiscal policy as it hiked its main interest rate by another 50 basis points to 30.0%. The nation is grappling with its worst economic crisis in a generation amid double-digit inflation and ballooning public debt.



The cedi GHS= was up 0.4% against the dollar.



Hungary and Nigeria&#8217;s rate decisions are also on deck, with the forint EURHUF= slipping 0.1% against the euro and the Naira NGN= gaining 1.5% against the dollar.



Elsewhere, Indonesia central bank held its key policy rates for the sixth straight review.



The Russian rouble RUBUTSTN=MCX strengthened to a more than one-week high against the dollar, boosted by high oil prices and an upcoming month-end tax period.



(Reporting by Ankika Biswas in Bengaluru; Editing by Simon Cameron-Moore)

China stocks leap on stimulus hopes, Israeli assets weaken

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-820x547.jpg" alt="" class="wp-image-426190" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/HEZFFZGV3JKH7CD2WNESNXGKDE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">United Nations Development Programme (UNDP) Administrator Achim Steiner speaks during a news conference in Kabul, Afghanistan, March 29, 2022. REUTERS/Ali Khara</figcaption></figure>



GENEVA/LONDON, July 14 (Reuters)&nbsp;&#8211;&nbsp;A United Nations agency urged global finance ministers to give poor countries debt repayment breaks, estimating the COVID-19 pandemic and subsequent surge in inflation and borrowing costs had pushed an extra 165 million people into poverty.



The U.N. Development Programme said the jump meant more than 20% of the world&#8217;s population &#8211; around 1.65 billion people &#8211; were now living on less than $3.65 a day and struggling to put food on the table.



Group of 20 finance ministers meeting in India next week will discuss tackling poverty, along with reforming the world&#8217;s top multilateral institutions and the international debt architecture.



Achim Steiner, UNDP Administrator, called the surge in poverty alarming.



&#8220;What this means is a government that can no longer pay its teachers; a government that can no longer employ doctors and nurses in hospitals, that cannot provide the medicines for rural health centers,&#8221; he told journalists.



All of the additional 165 million people in poverty were in low or lower-middle income countries, UNDP said.



Poverty levels had been gradually dropping until the pandemic but have since risen.



Interest rate rises meant poorer nations now spend twice or three times the share of their revenues on servicing debt compared to wealthier ones, and about 2.3 times more on interest payments than on social assistance.



Steiner said the UNDP was calling for a &#8220;Debt-Poverty Pause&#8221; so that those countries facing the most acute problems can focus their resources on critical social expenditure.



It would be similar to the since-ended Debt Service Suspension Initiative (DSSI) the G20 set up to help poorer countries during COVID-19.



The UNDP estimates 25 low-income countries spent over 20% of their revenues on debt servicing last year. It was highest number crossing that threshold since 2000 and could rise further if global interest rates continue to rise.



&#8220;Particularly for low income countries &#8230;the debt burden has become unsustainable,&#8221; Steiner said.



Eliminating poverty is one of a series U.N. goals aimed at tackling some of humanity&#8217;s most entrenched problems by 2030.



U.N. Secretary-General Antonio Guterres has called for sweeping reform of the international financial system to allow for a more equitable distribution of resources.



A report this week showed almost 30% of the $92 trillion of government debt in the world is owed by developing countries.



&#8220;We need new mechanisms to anticipate and absorb shocks,&#8221; Steiner said, adding that mitigating the recent impact on the world&#8217;s poor would cost just over $107 billion, or 0.065 percent of global GDP.



(Reporting by Emma Farge in Geneva and Marc Jones in London)

UNDP Administrator Achim Steiner speaks during a news conference in Kabul

UN agency calls for debt pause option as poverty rates rise

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



July 13 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks rallied on Thursday with the dollar taking a hit on growing bets of an imminent end to the U.S. rate-hiking cycle, while Pakistan dollar bonds jumped after the International Monetary Fund cleared a $3 billion bailout.



The MSCI index for EM stocks&nbsp;.MSCIEF&nbsp;gained 1.4%, touching a three-week high, led by heavily-weighted China&#8217;s blue-chip stocks&nbsp;.CSI.



China&#8217;s Hong Kong-listed tech giants .HSTECH advanced 3.8% after Premier Li Qiang urged the companies to support a slowing economy, adding to signs that a years-long crackdown on the sector is over.



The MSCI index for EM currencies&nbsp;.MIEM00000CUS&nbsp;rose 0.5%, touching a near three-month high, set for its steepest five-day percentage gain since mid January.



The dollar came under further pressure as traders took surprisingly slow U.S. inflation as a signal rate rises will be all but finished by month&#8217;s end.



&#8220;With uncertainty in U.S. and other developed markets over inflation outlook and central bankers&#8217; desire to re-establish anti-inflation credibility, safer options remain those EM currencies backed by positive real interest rates, like in Brazil and Mexico,&#8221; said Hasnain Malik, emerging &amp; frontier markets equity strategy at Tellimer.



Pakistan&#8217;s sovereign bonds and rupee PKR= gained after the IMF cleared a $3 billion bailout programme, which will immediately disburse about $1.2 billion to help stabilise the ailing economy.



This follows a $2 billion financial support from Saudi Arabia this week.



&#8220;Pakistan&#8217;s IMF deal and follow-on release of bilateral funds from Saudi and others allows it to step back from a full blown crisis,&#8221; Malik added.



The South African rand&nbsp;ZAR=&nbsp;jumped 0.8%, slipping below 18 per dollar for the first time since mid April, ahead of local mining output data.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;edged higher, still smarting from the impact of domestic political turmoil and capital outflows following last month&#8217;s abortive mutiny.



Meanwhile, data showed Czech Republic&#8217;s headline inflation eased below 10% in June for the first time since 2022 start. Another set showed Romania&#8217;s consumer price rose 10.25% year-on-year in June from May&#8217;s 10.64%, in line with expectations.



These inflation prints come in the backdrop of growing talks of rate cuts in Central and Eastern Europe. However, both the Romanian leu&nbsp;EURRON=&nbsp;and Czech crown&nbsp;EURCZK=&nbsp;were flat against the euro.



Elsewhere, Thailand markets floundered as political instability weighed on sentiment, with Prime ministerial hopeful Pita Limjaroenrat bracing for a critical test of his political clout.



South Korea&#8217;s central bank held rates steady for the fourth time, saying it will maintain a tight stance on monetary policy amid still-high prices. The won KRW= was up 0.4%.



(Reporting by Ankika Biswas in Bengaluru;Editing by Krishna Chandra Eluri)

Stocks, FX rally; Pakistan dollar bonds jump on IMF nod to bailout

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI-820x546.jpg" alt="" class="wp-image-426167" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/6ZEUYCY2HBKP7H32FJBMQXZXQI.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee</figcaption></figure>



LONDON, July 12 (Reuters)&nbsp;&#8211;&nbsp;Global public debt surged to a record $92 trillion in 2022 as governments borrowed to counter crises, such as the COVID-19 pandemic, with the burden being felt acutely by developing countries, a United Nations report said.



Domestic and external debt worldwide has increased more than five times in the last two decades, outstripping the rate of economic growth, with gross domestic product only tripling since 2002, according to the Wednesday report, released in the run up to a G20 finance ministers and central bank governors&#8217; meeting July 14-18.



Developing countries owe almost 30% of the global public debt, of which 70% is represented by China, India and Brazil. Fifty-nine developing countries face a debt-to-GDP ratio above 60% &#8211; a threshold indicating high levels of debt.



&#8220;Debt has been translating into a substantial burden for developing countries due to limited access to financing, rising borrowing costs, currency devaluations and sluggish growth,&#8221; the UN report added.



Furthermore, the international financial architecture made access to financing for developing countries both inadequate and expensive, the UN said, pointing to net interest debt payments exceeding 10% of revenues for 50 emerging economies worldwide.



&#8220;In Africa, the amount spent on interest payments is higher than spending on either education or health,&#8221; the report found with 3.3 billion people living in countries that spend more on debt interest payments than on health or education.



&#8220;Countries are facing the impossible choice of servicing their debt or serving their people.&#8221;



Private creditors, such as bondholders and banks, represent 62% of developing countries&#8217; total external public debt.



In Africa, this creditor participation grew from 30% in 2010 to 44% in 2021, while Latin America has the highest ratio of private creditors holding external government debt for any region at 74%.



The United Nations said multilateral lenders should expand their financing, with measures such as a temporary suspension of International Monetary Fund (IMF) surcharges &#8211; commissions charged to borrowers using its credit lines extensively &#8211; and increased financing access for countries in debt distress.



A debt workout mechanism is also needed &#8220;to address the slow progress of the G20 Common Framework&#8221;, the authors said, without providing any further details on how that mechanism should work.



The debt treatment framework was adopted by the Group of 20 major economies and official creditors in October 2020, and aims to include non-Paris club members such as China in debt relief.



(Reporting by Jorgelina do Rosario, editing by Karin Strohecker and Sharon Singleton)

6ZEUYCY2HBKP7H32FJBMQXZXQI

Global public debt hits record $92 trillion – UN report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



July 11 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market stocks gained on Tuesday as risk appetite improved amid bets that market-punishing U.S. rate hikes were approaching an end, while equities in China rose on Beijing&#8217;s support for the property sector.



The heavily-weighted blue-chip CSI300 index&nbsp;.CSI300&nbsp;and Hong Kong&#8217;s Hang Seng Index&nbsp;.HSI&nbsp;climbed 0.7% and 1.0% respectively, boosting the MSCI index&nbsp;.MSCIEF&nbsp;for EM stocks by 1.2%.



Hong Kong-listed China developers .HSMPI jumped as much as 3.2%, before paring gains, after China extended some policies in a November rescue package until end-2024 to shore up the real estate sector, with markets expecting more stimulus soon.



Pakistan&#8217;s benchmark KSE 100 index .KSE jumped 1.3% to its highest in more than a year after the country received $2 billion in financial support from Saudi Arabia, another boost for the ailing economy after an IMF bailout.



Turkish President Tayyip Erdogan on Monday agreed to forward to parliament Sweden&#8217;s bid to join the NATO military alliance, appearing to end months of drama over an issue that had strained the bloc as war has raged in Ukraine. Turkey&#8217;s BIST-100 stock index .XU100 gained 0.8%



&#8220;Foreign policy matters for a country (Turkey) that needs external capital, sits close to some of the world&#8217;s hottest military conflicts, is part of the route taken by migrants on the way to Europe, and has ambitions to project influence and power in all directions outside its borders,&#8221; said Hasnain Malik, emerging &amp; frontier markets equity strategy at Tellimer.



Elsewhere, the Bank of Israel left short-term borrowing rates unchanged on Monday for the first time since early 2022, but warned that rates could be hiked further if inflation picked up again.



Tel Aviv shares&nbsp;.TA125&nbsp;rose 0.2%, while the shekel&nbsp;ILS=&nbsp;fell 0.3%.



The MSCI index for EM currencies&nbsp;.MIEM00000CUS&nbsp;advanced 0.3%, hitting a near one-week high and on track for its biggest one-day percentage gain in nearly a month.



The dollar =USD weakened to a two-month low after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle. FRX/



South Africa&#8217;s rand ZAR=strengthened 0.5% ahead of local manufacturing data that could provide more clues about the health of the economy.



A strengthening Russian rouble RUBUTSTN=MCX continued to move further away from a more than 15-month low hit last week after a slump triggered by an aborted armed mutiny.



Among major movers in the Central and East Europe, Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;was up 0.3% against the euro, while Czech Republic&#8217;s crown&nbsp;EURCZK=&nbsp;was down 0.2%.



(Reporting by Ankika Biswas in Bengaluru; Editing by Christina Fincher)

Easing Fed rate concerns, China stimulus hopes boost EM stocks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI.jpg" alt="" class="wp-image-426046" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI-149x90.jpg 149w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Machinery is seen at the Congolese state mining company Gecamines&#8217; copper plant in Kambove, in the southern region of Katanga January 31, 2013. REUTERS/Jonny Hogg</figcaption></figure>



NAIROBI, July 6 (Reuters) &#8211; Gecamines aims to produce 30 metric tons of germanium a year at a plant which is nearing completion in the Democratic Republic of Congo, the state-owned copper and cobalt producer said on Thursday.



Starting in September, the plant at Big Bill slag in Lubumbashi will process waste material from the tailings site and germanium could be available on the market from October, Gecamines Chairman Guy Robert Lukama told Reuters.



China on Monday announced export curbs on some gallium and germanium products, citing national security interests, causing concern in the semiconductor and defence sectors, which use the metals in products from computer chips to fibre-optic cables.



&#8220;The move by China will create some scarcity in the market, which means that our germanium which is not yet committed could have more value,&#8221; Lukama said in an interview.



&#8220;There are no customers yet, but there is interest, its been there since we started the project and we are quite sure that we will get more interest on our germanium shortly.&#8221;



The Chinese curbs from Aug. 1 could disrupt global supply chains, as China controls most production of the metals.



Gecamines expects to see more interest for its metals and could enter into sales contracts from 2024, Lukama said.



The plant at the Big Hill slag will also process copper, cobalt and silver cost effectively, as it is cheaper to recover metal from tailings, he added.



Congo is the world&#8217;s top cobalt supplier and Africa&#8217;s biggest copper producer.



Gecamines also plans to explore the viability of processing gallium and could consider further investments to recover germanium from old mining sites if global demand firms up.



&#8220;In the past germanium was not critical that is why they just put them as a tailings,&#8221; Lukama said.



&#8220;If the demand is huge, then we can spend more money on restoration of those mines to convert into viable projects.&#8221; 



(Reporting by Felix Njini; Editing by Jason Neely and Alexander Smith)

Congo’s Gecamines aims to get germanium out of new plant from October

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-820x547.jpg" alt="" class="wp-image-426016" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A labourer dehusks rice before loading it in bags at a processing unit in the town of Fanaye, on the outskirts of Saint Louis, Senegal September 13, 2022. REUTERS/Zohra Bensemra</figcaption></figure>



SEOUL, July 6 (Reuters)&nbsp;&#8211;&nbsp;South Korea is set to sign an agreement next week with eight African nations to help boost rice production and cut their dependence on imports, Agriculture Minister Chung Hwang-keun told Reuters, amid concerns over food security on the continent.



The move also comes as President Yoon Suk Yeol has pledged to revamp South Korea&#8217;s foreign policy and make it a &#8220;global pivotal state&#8221; playing a more active role around the world.



Under the &#8220;K-Ricebelt Project&#8221;, South Korea will build facilities in Ghana, Guinea, Guinea-Bissau, Gambia, Senegal, Cameroon, Uganda and Kenya to produce rice seeds that better suit local conditions and have yields two to three times higher than domestic varieties, Chung said in an interview this week.



The minister said during several visits to Africa starting late last year officials told him they desperately needed help.



&#8220;It was when food security was a global issue. Rice prices had almost doubled due to supply chain disruptions,&#8221; Chung said, noting how food imports had squeezed the countries&#8217; foreign exchange reserves.



Rice is a staple in West Africa, but local production only meets around 60% of demand, according to the Economic Community of West African States (ECOWAS). This means the region is very exposed to global price volatility and trade disruptions.



An agriculture ministry official said South Korea planned to spend more than 100 billion won ($77 million) on the food project over the next four years, with a goal of distributing 10,000 tonnes of rice seeds every year from 2027.



&#8220;President Yoon Suk Yeol has been very clear about this, that we should come forward to help because we were the ones getting help during the difficult times,&#8221; Chung said.



South Korea has been able to produce enough rice to meet more than 90% of local demand, though still depends heavily on some other food imports.



Agriculture ministers from the eight participating African countries are due to visit Seoul to sign agreements on the project on Monday.



The United Nations&#8217; World Food Programme welcomed the move.



&#8220;The K-Rice project will bring outstanding rice varieties and hope to the small farmers in Africa suffering from the climate crisis,&#8221; Marian Sunhee Yun, the director of WFP Korea Office, said.



($1 = 1,302.3500 won)



(Reporting by Soo-hyang Choi; Editing by Ed Davies and Sonali Paul)

PKJQ7JMDLFNENCLG7LH25JBXNY-1

South Korea to help Africa cut dependence on rice imports -minister

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="468" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1.jpg" alt="" class="wp-image-425988" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1-140x90.jpg 140w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A worker walks near the Congolese state mining company Gecamines&#8217; copper concentrator at its Kambove operation in the southern province of Katanga, File. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s curbs on exports of germanium products will lift prices of the semiconductor material, Congolese state miner Gecamines said on Wednesday, creating more value for Democratic Republic of Congo as it readies a&nbsp;new unit&nbsp;to produce it.



China on Monday announced&nbsp;export restrictions&nbsp;on some gallium and germanium products, citing national security interests, alarming international companies in the semiconductor and defense industries.



&#8220;We will produce germanium (to replace material) that&#8217;s unavailable for the market,&#8221; Gecamines&#8217; chairman Guy Robert Lukama told Reuters.



Congo, already the world&#8217;s top cobalt supplier and Africa&#8217;s biggest copper producer, plans to explore for minerals needed to facilitate the global transition to a low-carbon economy, including lithium, tin, and rare earths.



The germanium and gallium export curbs from Aug. 1 could potentially cause disruption to global supply chains, as China controls most production of the metals used in computer chips and other products.



Nyrstar, an international producer of minerals and metals,&nbsp;told Reuters&nbsp;it is considering germanium and gallium projects in Australia, Europe and the U.S.



North America&#8217;s biggest germanium producer, Canada&#8217;s Teck Resources&nbsp;TECKb.TO, told Reuters in an emailed statement that the curbs on Chinese exports would not have any impact on its germanium production.



(Reporting by Felix Njini and Clara Denina; Editing by Alex Richardson and Jan Harvey)

FILE PHOTO: Worker walks near the Congolese state mining company Gecamines’ copper concentrator at its Kambove operation in the southern province of Katanga

Congo to benefit as China curbs germanium exports, state miner says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-820x512.jpeg" alt="" class="wp-image-397703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-820x512.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-300x187.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-768x479.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-1536x959.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A fuel attendant fills a tank at a gas station on Lagos&#8217; Ibadan highway on January 2, 2012 where new pump prices were implemented. Queues formed at petrol stations, protests broke out and unions threatened to paralyse Nigeria on January 2 over a deeply controversial measure that has more than doubled pump prices. The move announced on Sunday in Africa&#8217;s most populous nation and largest oil producer immediately ends fuel subsidies on petrol, a policy that had held pump prices at 65 naira per litre ($0.40, 0.30 euros). AFP PHOTO / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP via Getty Images)</figcaption></figure>



LONDON, July 4 (Reuters)&nbsp;&#8211;&nbsp;Abdoulaye Diallo is paying over 50% more to fill up his &#8220;thiak-thiak&#8221; motorbike taxi in Keur Mbaye Fall, a suburb of Senegal&#8217;s capital Dakar, than he was before the government began lifting fuel subsidies in January.



Diallo, 25, is already navigating punishing inflation and deadly political riots, but his biggest problem is he cannot pass on the cost of filling his fuel tank, which has risen to 3,500 CFA ($5.82), from 2,000 CFA last year.



&#8220;The customers&#8230;don&#8217;t realize how difficult it is,&#8221; Diallo said. &#8220;That&#8217;s the kind of thing we need to protest against.&#8221;



Senegal, like Nigeria and Angola, is removing costly fossil fuel subsidies – a move once considered politically unthinkable but which has become a necessity due to crushing debt, a spike in borrowing costs and high fuel prices.



Global spending on fossil fuel consumption subsidies doubled to a record $1 trillion last year as the war in Ukraine sent oil prices skyrocketing, according to the International Energy Agency (IEA).



Senegal&#8217;s fuel and electricity supports gobbled up 4% of GDP last year, while Nigeria spent $10 billion capping the price of petrol. Angola spent 1.9 trillion kwanza ($2.3 billion) in 2022, which is more than 40% of what the IMF estimated it spent on social programmes.



&#8220;The cost is too high for us to continue to pay,&#8221; said Stanley Achonu, Nigeria director of the ONE Campaign, which advocates for sustainable debt and an end to poverty.



<h2 class="wp-block-heading" id="h-sheer-fiscal-necessity">SHEER FISCAL NECESSITY</h2>



Nearly every country on earth has some fossil fuel subsidies, according to the Organisation for Economic Co-operation and Development (OECD). Costs ballooned when governments stepped in to shield citizens from punishingly high energy bills after Russia invaded Ukraine.



Goolam Ballim, chief economist with Standard Bank in Johannesburg, said African countries were removing them &#8220;out of sheer necessity&#8221; due to the toxic combination of rising borrowing costs and already large debt piles.



A borrowing spree during the last decade of low interest rates saw debt-to-GDP ratios in many African nations double or triple; ONE Campaign figures show that debt to GDP across Africa roughly doubled to 24% in the past decade.



Now, high costs have effectively locked many out of international bond markets. China, the lifeline lender to some African nations, has also tightened its purse strings.



After COVID-19 battered economic growth and the war in Ukraine boosted fuel and food prices, African countries had no &#8220;powder in the keg&#8221; to fund subsidies and kick-start economic recoveries.



&#8220;Credit spreads for African countries have surged,&#8221; said Ballim, indicating rising borrowing costs. &#8220;They&#8217;re about three times that of the average of emerging markets.&#8221;



According to the World Bank, almost half of the countries in sub-Saharan Africa are in or at high risk of debt distress.



<h2 class="wp-block-heading">FEEDING THE RICH</h2>



For people like Diallo, the timing is tough. Inflation in Senegal hit a record 14.1% last year, though it has since slowed, while in Nigeria it remains above 22%, its highest in decades. Angola&#8217;s double-digit inflation is likely to stay high due to the weakening kwanza.



In Angola, gasoline prices nearly doubled to 300 kwanza ($0.3645) per litre last month, prompting deadly protests, while Nigeria abandoned its last effort to cut subsidies in 2012 after crippling strikes.



But David Amaglobeli, deputy division chief in the IMF&#8217;s fiscal affairs department, said tough times should not stop subsidy removal.



&#8220;This money could be used or could be put to more productive use,&#8221; he said, adding that wealthier people disproportionately benefited from price caps, while printing money at the central bank to pay for them boosts inflation.



Widespread smuggling, which has &#8220;virtually disappeared&#8221; since Nigeria lifted subsidies, also drained cash that states could use boost economic growth for all citizens, he said.



Zambia cut subsidies as part of its IMF bailout after a painful 2020 default. Subsidy spending fell from 2.4% of GDP in 2021 to 0.4% in 2022, enabling a proportional rise in funding for education, health and social protection. Supporting vulnerable households &#8220;more or less immediately&#8221; is essential, Amaglobeli said.



Gregoire Garsous, senior policy analyst with the OECD, agreed.



&#8220;This is why we tend to think (subsidies) should be progressively phased out, and with policies that would replace them for those that would be hurt,&#8221; he said.



Nigeria will get $800 million from the World Bank to help support its poor, but Achonu said its registry of vulnerable citizens had only about 10 million people, compared with its more than 130 million poor.



The World Bank estimates that subsidy removal, and scrapping foreign exchange controls, would save Nigeria some 21 trillion naira ($27.49 billion) from 2023 to 2025.



Angola said it would phase its subsidy removal through 2025, and the savings would go towards cash transfers to poor citizens and to support agriculture, fishing and public transit.



Senegal will also slowly remove price supports through 2025, transfer cash to its poorest and continue carefully targeted subsidies for public transit. But those measures leave out urban taxis like Diallo&#8217;s motorbike.



&#8220;Changing prices will be tough for us,&#8221; Diallo said. &#8220;The authorities should take responsibility.&#8221;



($1 = 822.9400 kwanzas)



($1 = 764.0000 naira)



(Additional reporting by Karin Strohecker in London, Ngouda Dione in Dakar and Christian Elion in Brazzaville; Editing by Hugh Lawson)

Caught between riots and debt crises, African countries cut fuel subsidies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



June 29 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market currencies weakened on Thursday as the dollar gained on the back of hawkish comments by major central bankers, while Sri Lanka&#8217;s sovereign dollar bonds rose after the government made its latest debt restructuring pitch.



The greenback&nbsp;=USD&nbsp;strengthened to a seven-month high against the Japanese yen after U.S. Federal Reserve Chair Jerome&nbsp;Powell, speaking on a panel with ECB President Christine Lagarde, Bank of Japan (BOJ) Governor Kazuo Ueda and Bank of England Governor Andrew Bailey, pointed to expectations for two rate rises this year.



&#8220;Powell&#8217;s comments were on the hawkish side and are consistent with another hike coming in July,&#8221; Jefferies interest rate strategist Mohit Kumar said.



The Chinese yuan weakened&nbsp;CNY=CFXS&nbsp;despite the People&#8217;s Bank of China (PBOC) setting a much stronger than expected official rate.



Sri Lanka&#8217;s sovereign&nbsp;dollar bonds&nbsp;rose by as much as 0.77 cents earlier in the session, Tradeweb data showed.



The crisis-hit island nation is asking foreign&nbsp;investors&nbsp;in its international sovereign bonds to take a 30% haircut and seeks similar concessions from holders of its other dollar-denominated bonds in the effort to restructure massive debt.



The&nbsp;World Bank&nbsp;approved $700 million in budgetary and welfare support for Sri Lanka on Thursday, the biggest funding tranche since an International Monetary Fund (IMF) deal in March.



South Africa&#8217;s rand&nbsp;ZAR=&nbsp;dropped 0.2% ahead of producer price index data for May later in the day.



Central bank data&nbsp;showed&nbsp;South Africa saw a small foreign direct investment inflow of 0.5 billion rand ($26.76 million) in the first quarter of 2023, down from a revised inflow of 64.0 billion in the previous quarter.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;kept near a record low at about 26 to the dollar, while the Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;weakened to 87 against the dollar, hampered by domestic political instability after an aborted mutiny over the weekend.



&#8220;Countries like China and Iran, which are aligned with Russia, and prefer a weak but coherent Russia to a strong or fragmented Russia, will be left in a weaker position relative to their rivals than before,&#8221; said Hasnain Malik, emerging &amp; frontier markets equity strategy at Tellimer.



Brazil&#8217;s central bank inflation report will be watched later in the day.



(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Clarence Fernandez)

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Economy

Stocks fall for second day on jitters ahead of US inflation

China, Turkish banks send EM stocks on longest losing run in over a year

Russian rouble falls past 100 vs dollar; China woes linger

Stocks, FX crumble as weak China trade data bolster slowdown fears

India’s rice export ban to hurt millions globally. These countries will be the worst hit

Stocks, currencies eye monthly gains; Pakistan rate decision awaited

Global rice market set for government deals as India’s ban curbs supplies

China stocks leap on stimulus hopes, Israeli assets weaken

UN agency calls for debt pause option as poverty rates rise

Stocks, FX rally; Pakistan dollar bonds jump on IMF nod to bailout

Global public debt hits record $92 trillion – UN report

Easing Fed rate concerns, China stimulus hopes boost EM stocks

Congo’s Gecamines aims to get germanium out of new plant from October

South Korea to help Africa cut dependence on rice imports -minister

Congo to benefit as China curbs germanium exports, state miner says

Caught between riots and debt crises, African countries cut fuel subsidies

Currencies fall against dollar, Sri Lanka plans new debt restructuring

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