<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>



June 26 (Reuters)&nbsp;&#8211;&nbsp;A broad gauge for emerging market stocks hit near three-week lows on Monday after a failed mutiny by Russian mercenaries raised questions about stability in the country, sending the rouble to its lowest in nearly 15 months against the dollar.



The MSCI&#8217;s emerging market stocks index&nbsp;.MSCIEF&nbsp;fell 0.3% by 0847 GMT, heading for its sixth straight session of declines.



A short-lived mutiny by Wagner Group mercenaries over the weekend has made Western allies assess how President Vladimir Putin might reassert his authority and what it could mean for the war in Ukraine.



Russia&#8217;s rouble was 0.2% weaker against the dollar at 84.87&nbsp;RUBUTSTN=MCX&nbsp;in Moscow trading, after hitting 87.2300 in early trade, its weakest point since March, 2022.



&#8220;Many geopolitical experts claim that President Putin&#8217;s position is now weaker, which should be positive for Ukraine and it may force him to seek peace talks earlier than previously assumed,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets in London.



&#8220;Should such a scenario unfold, it would be particularly positive for the euro and the CEE currencies – particularly the zloty.&#8221;



Ukraine&#8217;s sovereign dollar-denominated bonds rose nearly 3 cents on Monday, with the 2041 bond rising as much as 2.9 cents to trade at 42 cents in the dollar &#8211; its strongest level since Russia&#8217;s invasion of Ukraine in February, 2022, Tradeweb data showed. XS1303929894=TE



The Polish zloty&nbsp;EURPLN=&nbsp;was flat against the euro, while other central and eastern European currencies edged lower against the euro.



The Turkish lira TRY= plunged nearly 3% to a new record low of 26 against the dollar, after the central bank took steps to simplify its macroprudential framework over the weekend, having hiked rates sharply last week.



Pakistan&#8217;s sovereign dollar-denominated bonds jumped after the country&#8217;s parliament approved a revised budget in a last- ditch bid to clinch a deal with the International Monetary Fund (IMF).



China and Hong Kong stocks&nbsp;.HSI,&nbsp;.SSEC&nbsp;closed down for a fourth straight session on Monday, as tourism data during last week&#8217;s three-day Dragon Boat Festival pointed to weak economic recovery.&nbsp;.SS



S&amp;P Global cut its forecast for economic growth in China this year, underscoring the uneven nature of the country&#8217;s post-reopening recovery that is spurring more calls for further stimulus.



South Africa&#8217;s rand ZAR= was among rare gainers against the dollar, firming some 0.2%. Data from the Johannesburg Stock Exchange showed offshore investors sold a net 7.63 billion rand ($407 million) of South African stocks last week.



(Reporting by Shreyashi Sanyal in Bengaluru, editing by Ed Osmond)

Stock market report. 3d illustration

Stocks extend fall, rouble languishes at 15-month low after failed mutiny

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



June 20 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell for the second straight session on Tuesday as a modest rate cut from China disappointed investors awaiting bigger policy stimulus from the country to boost its faltering economic growth.



MSCI&#8217;s index of emerging market equities&nbsp;.MSCIEF&nbsp;was 0.8% lower at 0817 am GMT, hovering near one-week lows.



The People&#8217;s Bank of China cut its key lending benchmarks on Tuesday to shore up a slowing economic recovery, but the cut to the five-year rate, on which mortgage rates are based, was not as large as markets had expected.



Equities in mainland China&nbsp;CSI300&nbsp;and Hong Kong&nbsp;.HSI&nbsp;were a big drag, with the Hang Seng Mainland Property Index&nbsp;.HSMPI&nbsp;slumping nearly 4%.



&#8220;It (the smaller rate cut) does suggest that the PBoC is unwilling to bolster the already inflated housing markets to support growth. Instead, the central bank believes the oversized household savings at present should be able buttress consumption going forward even without mortgage payment relief,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



Hopes of major policy stimulus from China had helped EM stocks log solid gains last week, after the country lowered some lending rates to aid its economy through a rocky post-pandemic recovery.



Also denting sentiment, China and the United States failed to produce any major breakthrough during a rare visit to Beijing by U.S. Secretary of State Antony Blinken, though both parties agreed to stabilize their intense rivalry.



EM currencies&nbsp;.MIEM00000CUS&nbsp;were down 0.1%.



The Hungarian forint EURHUF= slipped 0.2% against the euro ahead of a local interest rate decision where the central bank is expected to deliver another cut to the one-day deposit rate.



Turkey is working on extending a measure limiting annual rent increases to a maximum of 25%, Justice Minister Yilmaz Tunc was quoted as saying late on Monday by state-owned Anadolu news agency.



The lira&nbsp;TRYTOM=D3&nbsp;was slightly weaker at 23.6075 against the dollar.



The South African rand ZAR= rose 0.2% against the dollar, extending gains to the fifth straight day. South Africa&#8217;s composite leading business cycle indicator fell 1.0% month on month in April, central bank data showed on Tuesday.



(Reporting by Amruta Khandekar; Editing by Sharon Singleton)

Investment-management

Stocks fall for second day as China’s rate cut disappoints

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-820x541.jpg" alt="" class="wp-image-425505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Harsha Bangari, Managing Director, India EXIM Bank, poses for a picture after an interview with Reuters at a hotel in New Delhi, India, June 15, 2023. REUTERS/Anushree Fadnavis</figcaption></figure>



NEW DELHI, June 15 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s Export-Import Bank plans to step up investments under a government-supported line of credit programme to finance Indian companies looking to access fast-growing African markets, the bank&#8217;s top official said, part of a move to expand trade ties.



Amid rising competition from China, Indian Prime Minister Narendra Modi has stepped up efforts to strengthen ties with African nations via aid for infrastructure projects and private investments by Indian companies.



&#8220;Africa is becoming a big consuming continent and there Indian companies have huge potential to find a market,&#8221; Harsha Bangari, managing director of Export-Import (EXIM) Bank of India, told Reuters in an interview on the sidelines of the 18th CII-Exim Bank Conclave on India-Africa Growth Partnership.



State-owned EXIM Bank, which plays a critical role in providing export financing and government-directed lending to other countries, was supporting over 300 small Indian companies to expand business in African countries, she said.



&#8220;We are seeing a consistent and steady trend,&#8221; in increasing lines of credit and trade finance, she said, adding EXIM&nbsp;Bank had so far made a credit commitment of $12.8 billion to 42 African countries.



The bank plans to raise $3-$3.5 billion of funds in the current financial year, mostly denominated in U.S. dollars, to finance new projects, she said.



With nearly $75 billion of investments by Indian companies, India is among the top five investors in Africa, government officials told African leaders at the three-day summit.



Bilateral trade between India and Africa rose to nearly $100 billion in the fiscal year to the end of March 2023, and the government aims to raise it to $200 billion by 2030.



EXIM Bank was engaged with various African governments as part of India&#8217;s economic diplomacy, including over a metro train project in Mauritius, exports of buses from India to Senegal, and an electricity project in Gambia, Bangari said.



&#8220;We have identified sustainable fuels and minerals for transport, renewable and clean energy, climate smart agriculture among other areas for supporting lending to the African countries,&#8221; she added.



(Reporting by Manoj Kumar; Editing by Mark Potter)

Harsha Bangari, Managing Director, India EXIM Bank, poses for a picture after an interview with Reuters at a hotel in New Delhi

India’s EXIM Bank plans to step up funding for African countries

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-820x471.jpg" alt="" class="wp-image-425497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-820x471.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-768x441.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-1536x882.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, October 31, 2022. REUTERS/Umit Bektas/File Photo</figcaption></figure>



JOHANNESBURG/LUSAKA/KAMPALA, June 15 (Reuters)&nbsp;&#8211;&nbsp;Key African states stressed the need for grain imports to tackle food insecurity as Russian President Vladimir Putin prepares to discuss with the continent&#8217;s leaders the fate of a deal allowing the safe Black Sea export of food and fertiliser from Ukraine.



Putin&nbsp;said&nbsp;on Tuesday that Russia was considering quitting the Black Sea grain initiative &#8211; brokered by the United Nations and Turkey in July last year &#8211; because its own grain and fertiliser shipments still face obstacles.



The pact could&nbsp;expire&nbsp;on July 17.



A delegation of African leaders is due to visit both Ukraine and Russia from this weekend in a push to end Russia&#8217;s 16-month long war, and Putin has said he plans to use the occasion to raise the matter.



South African President Cyril Ramaphosa believes Putin and Ukrainian President Volodymyr Zelenskiy are aligned with him on the &#8220;importance of grain deliveries to Africa for the alleviation of food insecurity&#8221;, said Ramaphosa&#8217;s spokesperson Vincent Magwenya.



&#8220;We are therefore not aware of any threats to pull out of the grain deal,&#8221; Magwenya told Reuters on Wednesday.



Kremlin spokesman Dmitry Peskov&nbsp;said&nbsp;on Wednesday that Moscow had not yet made a decision on withdrawing.



Russia has issued a list of&nbsp;demands&nbsp;it wants met, including the resumption of its Black Sea&nbsp;ammonia&nbsp;exports and&nbsp;reconnection&nbsp;of the Russian Agricultural Bank to the SWIFT payment system.



<h2 class="wp-block-heading" id="h-devastating-toll">&#8216;DEVASTATING TOLL&#8217;</h2>



While food and fertiliser exports do not fall under the West&#8217;s tough sanctions imposed on Russia over the war, Moscow says restrictions on payments, logistics and insurance create barriers.



Putin also complained that under the deal &#8220;almost nothing goes to African countries&#8221; and said Moscow is ready to supply grain for free to the world&#8217;s poorest countries.



The United Nations has long&nbsp;said&nbsp;the Black Sea grain deal is a commercial enterprise, but that it benefits poorer countries by helping lower food prices globally.



Zambia&#8217;s Foreign Minister Stanley Kakubo said in a statement on Wednesday that the war in Ukraine and conflict in Sudan had &#8220;taken a devastating toll on African communities, resulting in the loss of life, and food insecurity, due to the rising costs of grain and fertiliser&#8221;.



According to U.N.&nbsp;data&nbsp;more than 31 million tonnes of grain have been exported under the pact, with 43% of that to developing countries. More than 625,000 tonnes of grain has been shipped by the U.N. World Food Programme for aid operations.



The Black Sea grain deal was initially brokered for 120 days. Russia has agreed to extend it three times but&nbsp;warned&nbsp;on Wednesday that its &#8220;goodwill&#8221; cannot last forever.



Not all African states were worried, however.



&#8220;If it&#8217;s true that we would starve if that grain deal is disrupted, why is it that it&#8217;s the West crying more than us Africans? They are crying crocodile tears,&#8221; Uganda&#8217;s state minister for Foreign Affairs, Okello Oryem told Reuters.



He added that Uganda would have no qualms about accepting free grain from Russia.



(Writing by Michelle Nichols; Editing by Joe Bavier, Kirsten Donovan)

FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi in Istanbul, Turkey

Africa needs grain imports, key states say ahead of Putin talks

<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 15 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks were at four-month highs on Thursday, boosted by hopes of more policy stimulus from China to support its struggling economy, while currencies were subdued after the U.S.&nbsp;Federal Reserve&#8217;s &#8216;hawkish pause&#8217; propped up the dollar.



The MSCI index of emerging market equities .MSCIEF rose 0.7% by 0841 am GMT as China&#8217;s weak industrial output and retail sales growth in May boosted expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.



China has already ramped up stimulus measures in recent days, with its central bank on Thursday lowering the borrowing cost of its medium-term policy loans for the first time in 10 months.



China&#8217;s blue-chip stocks gained 1.6% and Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;rallied 2.2%, while the yuan&nbsp;CNY=CFXS&nbsp;erased early losses to edge 0.1% higher.



Broader emerging market currencies .MIEM00000CUS were down 0.06% as the dollar =USD firmed after the Fed on Wednesday left interest rates unchanged but signaled that borrowing costs may still need to rise by as much as half of a percentage point by the end of this year.



&#8220;The pause in rate hikes was widely expected and communicated, and over the past weeks, there were strong hints to the possibility of new rate rises,&#8221; said Paolo Zanghieri, senior economist at Generali Investments.



&#8220;What surprised in the June meeting was the possible extent of such&nbsp;an&nbsp;increase.&#8221;



The European Central Bank (ECB) is widely expected to hike rates by 25 basis points later in the day.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;slipped to 23.67 against the dollar after having steadied on Wednesday.



Turkish home sales fell 7.7% year-on-year in May, data showed on Thursday.



The Polish zloty EURPLN= was flat against the euro, while shares in Poland&#8217;s banking sector .BNKI fell 2.3% after the European Union&#8217;s top court backed consumers in a foreign currency mortgage case.



In other news, Nigeria&#8217;s central bank moved to liberalize foreign exchange trading on Wednesday, capping a dramatic day that saw the official Naira rate devalued by more than a third.



The International Monetary Fund on Thursday expressed dissatisfaction with Pakistan&#8217;s recently presented budget in a blow for the cash-strapped country.



(Reporting by Amruta Khandekar; Editing by Sohini Goswami)

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

China stimulus hopes boost stocks, FX muted as Fed signals rate hikes

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



June 14 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks and currencies were subdued on Wednesday as investors awaited the outcome of the U.S. Federal Reserve&#8217;s monetary policy meeting for clues on the direction of interest rates in the world&#8217;s largest economy.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was down 0.2% by 0823 am GMT, slipping from a fresh four-month high hit earlier in the session, while currencies&nbsp;.MIEM00000CUS&nbsp;were 0.1% lower.



The Federal Reserve is expected to leave interest rates unchanged at the end of its meeting later in the day given a slowdown in inflation, pausing an aggressive rate-hiking cycle which began early last year.



Investors will also focus on comments from Fed Chair Jerome Powell at a conference held shortly after the policy decision.



Hopes of a pause in the Fed&#8217;s tightening as well as a rate cut from China to boost its faltering economic recovery have aided sentiment towards emerging market equities this week.



&#8220;Inflationary pressures have faded sufficiently for the Fed to skip a rate hike, but not to end the tightening cycle. The overall message could be far more hawkish than the markets assume,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;The key question is whether the markets actually listen to what Chair Powell has to say about inflation being sticky and that more rate hikes are likely.&#8221;



China&#8217;s blue-chip stocks index&nbsp;.CSI300&nbsp;was muted, while the yuan&nbsp;CNY=CFXS&nbsp;steadied just above a six-month low against the dollar as investors assessed odds of further policy stimulus from the country.



The Chinese central bank is widely expected to cut the borrowing cost of medium-term policy loans for the first time in 10 months on Thursday after it lowered two key short-term policy rates, a Reuters poll showed.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;weakened from the previous day&#8217;s close and was last at 23.68 against the dollar, but had still not touched Monday&#8217;s record low of 23.77 versus the dollar.



The Russian rouble RUBUTSTN=MCX slid to a more than 14-month low past the 85 mark against the dollar due to limited foreign currency supply in a reduced-liquidity market.



South Africa&#8217;s rand ZAR= gained 0.6% against the dollar ahead of retail sales data for April due later in the day.



(Reporting by Amruta Khandekar; Editing by Jan Harvey)

istockphoto-1076949610-612×612-1

Stocks, FX subdued with all eyes on Fed rate decision

<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>



June 12 (Reuters)&nbsp;&#8211;&nbsp;Stocks in emerging markets edged higher on Monday at the start of a week dominated by major central bank policy decisions, while Turkey&#8217;s lira slid to an all-time low as investors awaited signals on the central bank&#8217;s next move on interest rates.



MSCI&#8217;s emerging markets equities index&nbsp;.MSCIEF&nbsp;was up 0.1% at 0817 am GMT, clinging to a two-month high.



Market focus this week is on monetary policy decisions from the U.S. Federal Reserve, the European Central Bank (ECB) and the Bank of Japan (BOJ), which will shape expectations for the direction of interest rates in major global economies going forward.



China&#8217;s blue-chip index&nbsp;.CSI300&nbsp;was trading higher ahead of a fresh batch of data on the world&#8217;s second-largest economy this week, while the yuan&nbsp;CNY=CFXS&nbsp;weakened to a fresh six-month low against the dollar.



Several Chinese commercial banks cut interest rates on a range of yuan deposits from Monday, following their larger peers in a coordinated move to ease pressure on profit margins.



The Turkish liraTRYTOM=D3 weakened to 23.77 against the dollar, its lowest level so far, as investors awaited any indications from authorities about a reversal of unorthodox monetary policies after the appointment of a new central bank governor last week.



JPMorgan said on Monday it expects Turkey&#8217;s central bank to hike rates to 25% from the current 8.5% at its June meeting, while Goldman Sachs has said rates could rise to 40%.



&#8220;Lira could see more bouts of volatility in the coming weeks as intervention takes a backseat and more &#8220;rational&#8221; policy making is being advocated. However, better communication to the markets ahead of the meeting could smooth out the volatility,&#8221; said Charu Chanana, market strategist at Saxo Markets in Singapore.



The country&#8217;s main stock index&nbsp;.XU100&nbsp;hit an all-time high of 5,725.25 points earlier in the session.



Turkey&#8217;s central bank said on Monday the country&#8217;s current account deficit in April widened to $5.404 billion, with the figure surpassing a Reuters forecast.



Separately, Turkey&#8217;s unemployment rate edged up 0.1 points month-on-month to 10.2% in April.



Nigeria&#8217;s sovereign dollar-denominated bonds rose sharply on Monday, as overseas investors welcomed the suspension late on Friday of central bank governor Godwin Emefiele, who oversaw multiple exchange rates that sought to keep the naira strong.



(Reporting by Amruta Khandekar; Editing by Sherry Jacob-Phillips)

World map with charts and graphs as symbols of global finance

Stocks rise ahead of major cenbank decisions; Turkey’s lira weakens

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg" alt="" class="wp-image-425362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger</figcaption></figure>



June 9 (Reuters)&nbsp;&#8211;&nbsp;Pandemic-related disruptions to global supply chains and the effects of Russia&#8217;s war in Ukraine have driven up prices of energy, commodities and other necessities.



Here&#8217;s how governments are trying to help hard-hit consumers and companies:



<h2 class="wp-block-heading" id="h-americas">AMERICAS:</h2>



* U.S. President Joe Biden&#8217;s drug pricing reform, part of the Inflation Reduction Act, penalises drugmakers for excessive prices, aiming to reduce out-of-pocket costs for Medicare recipients. The program has been challenged in court by drugmaker Merck &amp; Co MRK.N.



* Brazil&#8217;s state oil company Petrobras PETR4.SA in May approved a new fuel pricing policy for gasoline and diesel that will sharply lower costs for motorists. President Luiz Inacio Lula da Silva has pledged to introduce a bill making the annual minimum wage adjustment above inflation a permanent rule.



* Mexico has raised the minimum wage by 20% for 2023. In March it opened the door to imported Brazilian bovine products for the first time as it looks to diversify its food supply to try to curb inflation.



* Colombia raised the minimum wage by 16% for 2023.



<h2 class="wp-block-heading">EUROPE:</h2>



* The European Commission extended its gas price cap system to all trading hubs in the European Union from May. EU countries agreed on the cap in December.



* French finance Minister Bruno Le Maire said 75 big food industry players had pledged to lower prices on hundreds of products starting next month. The government has been urging food retailers and manufacturers to cut prices to help households.



* Hungarian Prime Minister Viktor Orban earlier in June imposed mandatory price cuts on some basic food items by large retailers.



* Poland plans to raise the minimum wage twice more in 2024. It was increased from January 2023 and will be lifted again from July.



* Germany is launching a programme that will make available tens of billions of euros for firms facing substantial energy costs. The government last year introduced electricity and gas price caps.



* Most British households can expect cheaper energy bills from July after regulator Ofgem slashed its price cap to reflect a slump in wholesale costs. The new cap marks a near 40% fall compared with the previous level.



* The Greek government in May extended to the end of September some of the measures it took last year to help households and businesses with soaring energy bills.



* Italy in March approved measures worth almost 5 billion euros ($5.38 billion) to cut energy bills for families and firms.



* Portugal in March announced a package to help low-income families, including scrapping value added tax on essential food products.



* Spain raised the minimum wage from January by 8%.



<h2 class="wp-block-heading">ASIA-PACIFIC:</h2>



* Australia will raise the minimum wage by 5.75% from July 1. In May, the government said it would include A$14.6 billion ($9.79 billion) over four years in the federal budget for cost of living relief.



* South Korea has cut tariffs from June on higher-priced edible products, including pork and sugar.



* Pakistan in April capped the retail price rise in essential drugs at 14%.



* India in March lifted the inflation-adjusted allowance for federal government employees by 4%.



* Top Japanese companies in March agreed to their largest pay increases in a quarter of a century at annual labour talks, heeding Prime Minister Fumio Kishida&#8217;s call for higher wages.



* Japan has allocated more than 2 trillion yen ($14.33 billion) from reserve funds to try to limit inflation.



* Thailand in March agreed to extend an excise tax cut on diesel to July 20.



* The Philippines in December extended lower tariff rates on rice and other food items to the end of 2023.



<h2 class="wp-block-heading">AFRICA AND MIDDLE EAST:</h2>



* Nigeria needs to review its minimum wage policy, President Bola Tinubu said earlier in June. The country&#8217;s main labour union is negotiating with the government after petrol prices soared following the removal of a decades-old subsidy.



* Morocco in April adopted a decree cancelling VAT on agricultural inputs such as soil nutrients.



* The majority of South Africa&#8217;s public sector unions in late March agreed to a 7.5% wage increase after five months of strike action. The two-year deal is significantly higher than what the government had factored into its 2023 budget.



* Israel in early March reached a wage deal with its main public sector labour union, covering some 350,000 civil servants, and offering 11% increases between 2020 and 2027.



* Turkey in December raised the monthly minimum wage for 2023 by 55% from the level determined in July.



(Reporting by Reuters bureaus; Compiled by Olivier Sorgho, Tristan Chabba, Anna Mackenzie and Laura Lenkiewicz; Editing by Catherine Evans)

Grocery store in Washington

What are governments doing to ease inflation pain?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg" alt="" class="wp-image-425291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington, U.S., April 11, 2019. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



WASHINGTON, June 6 (Reuters)&nbsp;&#8211;&nbsp;The World Bank on Tuesday raised its 2023 global growth forecast as the U.S. and other major economies have proven more resilient than forecast, but said higher interest rates would cause a larger-than-expected drag next year.



Real global GDP is set to climb 2.1% this year, the World Bank said in its latest Global Economic Prospects report. That&#8217;s up from a 1.7% forecast issued in January but well below the 2022 growth rate of 3.1%.



The development lender cut its 2024 global growth forecast to 2.4% from 2.7% in January, citing the continuing effects of tighter monetary policy, particularly in reducing business and residential investment.



&#8220;Growth over the rest of 2023 is set to slow substantially as it is weighed down by the lagged and ongoing effects of monetary tightening, and more restrictive credit conditions,&#8221; it said.



&#8220;These factors are envisaged to continue to affect activity heading into next year, leaving global growth below previous projections.&#8221;



The bank predicted global growth rebounding to 3.0% in 2025.



In January, the World Bank had warned that global GDP was slowing to the brink of recession, but since then, strength in the labor market and consumption in the U.S. had exceeded expectations as has China&#8217;s recovery from COVID-19 lockdowns.



U.S. growth for 2023 is now forecast at 1.1%, more than double the 0.5% forecast in January, while China&#8217;s growth is expected to climb to 5.6%, compared to a 4.3% forecast in January after COVID-reduced growth of 3% in 2022.



The bank, however, halved its previous 2024 U.S. growth forecast for the U.S. to 0.8%, and cut China&#8217;s forecast by 0.4 percentage point to 4.6%.



The euro zone got a forecast increase to 0.4% growth for 2023 from a flat outlook in January, but the forecast for next year was also cut slightly.



<h2 class="wp-block-heading" id="h-banking-stress">BANKING STRESS</h2>



Recent banking sector stress is also contributing to tighter financial conditions that will continue into 2024, the lender said.



It cited one potential downside scenario where banking stress results in a severe credit crunch and broader financial market stress in advanced economies. This would likely cut 2024 growth by nearly half to just 1.3% &#8211; the slowest pace in 30 years outside of the 2009 and 2020 recessions.



&#8220;In another scenario where financial stress propagates globally to a far greater degree, the world economy would fall into recession in 2024,&#8221; the bank added.



The bank said inflation is expected to gradually edge down as growth decelerates and labor demand in many economies softens and commodity prices remain stable. But it added that core inflation is expected to remain above central bank targets in many countries throughout 2024.



(Reporting by David Lawder; Editing by Edwina Gibbs)

FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington

World Bank lifts 2023 global growth forecasts, but cuts next year’s outlook

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg" alt="" class="wp-image-425180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-768x530.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings with the logos of three of South Africa&#8217;s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town, South Africa, September 3, 2017. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, May 31 (Reuters)&nbsp;&#8211;&nbsp;Economic growth in key Sub-Saharan African economies will slow this year as weaker global growth makes the backdrop less favourable and high interest rates deter investment, ratings agency S&amp;P said in a research report.



S&amp;P said it now forecast the gross domestic product of eight Sub-Saharan African economies it tracks would expand 2.9% in 2023, down from 3.4% in 2022.



Its latest forecast is slightly more gloomy than a research report from June last year that predicted 2023 growth of 3.2% for seven African economies.



This year&#8217;s report included economic forecasts for Angola, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mozambique, Nigeria and South Africa. S&amp;P&#8217;s 2022 report did not feature Mozambique forecasts.



&#8220;The economic environment remains far from growth friendly, reflecting elevated policy uncertainty and above-average systemic financial stress,&#8221; S&amp;P said. &#8220;Policymakers face a tricky trade-off between public debt management, especially given higher interest rates, and macroeconomic stability.&#8221;



However, the end of the COVID-19 pandemic, the reopening of tourism and services sectors, and falling food and fuel prices should bring some relief, S&amp;P added.



S&amp;P now forecasts South Africa&#8217;s economy will grow 0.7% this year, down from a 1.6% forecast given in June 2022 because of an intensifying electricity crisis.



Democratic Republic of Congo and Ethiopia were poised to be the growth leaders in 2023 with GDP expansions of 6% this year, supported by mining in Congo and a recovery in investment in Ethiopia after a ceasefire between the government and Tigray forces, S&amp;P said.



Looking to 2024, S&amp;P projected average growth of 3.4% in the eight countries.



(Reporting by Anait Miridzhanian; Editing by Alexander Winning and Alison Williams)

The buildings with the logos of three of South Africa’s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town

S&P sees weaker 2023 growth in key African economies as tailwinds fade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg" alt="" class="wp-image-425070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-1536x960.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Singer Youssou N&#8217;Dour performs during the Muslim Voices: Arts &amp; Ideas festival in New York June 5, 2009. REUTERS/Lucas Jackson/File Photo</figcaption></figure>



ADDIS ABABA, May 26 (Reuters)&nbsp;&#8211;&nbsp;Performers from Ghana, Ethiopia and Tanzania have helped launch a five-year project to try to secure more funding for arts and culture, aiming to persuade&nbsp;African governments to allocate at least 1% of their budgets.



The project, called Connect for Culture&nbsp;Africa&nbsp;(CfCA) has been started by the&nbsp;African Union in collaboration with Selam Ethiopia, a non-governmental organisation that uses film, music and circus performances to address issues such as women rights.



&#8220;We want to empower artists. A lot of artists want to participate in these discussions about good governance, human rights but they are scared of the consequences,&#8221; Lucy Ilado, regional programme director at Selam, said.



It is not yet clear whether&nbsp;African governments, many of whom are struggling with debt repayments and the high costs of living, will be able to allocate more cash to the arts.



The&nbsp;African Union was not immediately available for further comment.



CfCA organisers said they would work with government agencies, research institutions, artists and civil society with the aim of &#8220;budget proposals, budget bills, and, in countries where the process is further along, discussions on increased budget allocation to the culture and creative sectors&#8221;.



Vitali Maembe, a musician from Tanzania who took part in Thursday night&#8217;s concert to launch the project, told Reuters he hoped that more funding would help artists to be better educated.



&#8220;It is very rare you go to the university and see funds for the art students,&#8221; he said.



Hundreds of revellers from Ethiopia and other&nbsp;African countries attended the concert, with music performances featuring saxophones, guitars, drums and traditional Ethiopian instruments.



(Reporting by Dawit Endeshaw; Editing by George Obulutsa and Alison Williams)

FILE PHOTO: Singer N’Dour performs during Muslim Voices: Arts & Ideas festival in New York

Musicians launch drive for more funding for arts in Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



May 26 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets currencies headed for weekly declines on Friday as expectations of higher-for-longer U.S. interest rates gained steam, while Turkey&#8217;s lira weakened to a record low of 20 against the dollar ahead of a presidential runoff election.



MSCI&#8217;s emerging market currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0847 GMT on Friday, but was set to log declines for the third straight week.



EM currencies have been pressured by a rally in the dollar, with investors scaling back expectations of a rate cut from the Fed this year after a slew of robust U.S. economic data, as well as the lack of an agreement to raise the U.S. debt ceiling with only a handful of days left before the deadline.



&#8220;This month&#8217;s hawkish re-appraisal of the Fed&#8217;s cycle is strengthening the dollar across the board,&#8221; ING strategists said in a note.



&#8220;Some of the more vulnerable EM currencies are hitting new lows. The subdued Chinese growth story certainly is not helping either.&#8221;



Still, the dollar =USD paused for breath on Friday on news that President Joe Biden and House Speaker Kevin McCarthy were nearing a debt ceiling agreement.



Turkey&#8217;s liraTRYTOM=D3, which has been steadily weakening since incumbent Tayyip Erdogan&#8217;s strong showing in the first round of the presidential election, breached the 20-to-the-dollar mark ahead of Sunday&#8217;s runoff vote.



Erdogan, whose unorthodox monetary policies have unnerved foreign investors and resulted in a sharp drop in the lira, is largely expected to remain in power after the runoff.



China&#8217;s yuanCNY=CFXS rebounded from a near six-month low against the dollar on Friday, as some major state-owned banks sold the U.S. currency to prevent the yuan from sinking further.



Heightened Sino-U.S. trade tensions as well as the country&#8217;s weak economic recovery has pressed the yuan in recent weeks.



Elsewhere, South Africa&#8217;s rand ZAR= made a marginal recovery on Friday from a new record low struck overnight against the dollar, after the central bank&#8217;s super-sized interest rate hike failed to impress some traders and economists.



The rand was heading for its fifth straight week in the red, having been pummelled by a crippling power crisis and concerns about a U.S. debt default.



EM stocks&nbsp;.MSCIEF&nbsp;rose 0.6%, snapping a three-day losing streak with investors cautiously optimistic about a U.S. debt ceiling deal after the latest update. The index was also set for weekly declines of 0.7%.



Asian stocks led gains on Friday, with India&#8217;s blue-chip Nifty index&nbsp;.NSEI&nbsp;up 0.8% and Taiwan stocks&nbsp;.TWII&nbsp;jumping 1.3%.



Among central and eastern European currencies, the Polish zloty&nbsp;EURPLN=&nbsp;fell 0.4% against the euro, pulling back from recent two-year highs, while the Czech crown&nbsp;EURCZK=&nbsp;was down 0.3%.



DBRS is expected to review Poland&#8217;s credit rating while Moody&#8217;s will review the Czech Republic&#8217;s rating later in the day.



(Reporting by Siddarth S in Bengaluru; editing by Mark Heinrich)

FX set for weekly losses, Turkey’s lira falls to record low against dollar

<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>



May 25 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks hit a one-month low on Thursday with sentiment hurt by mounting Sino-U.S. trade disputes, while the Turkish lira and the South&nbsp;African rand weakened ahead of interest rate decisions by both countries.



MSCI&#8217;s emerging market equities index&nbsp;.MSCIEF&nbsp;was down 0.6% by 0815 GMT, its third straight session in the red.



Disputes over technology between China and the United States have escalated in recent days, with&nbsp;allegations&nbsp;of&nbsp;spying&nbsp;by Chinese hackers exacerbating tensions and denting sentiment that was already fragile given the absence of a deal to raise the U.S. debt ceiling.



Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;took a big hit, tumbling 1.9%, while stocks in mainland China&nbsp;.CSI300&nbsp;lost 0.2% and the yuan also weakened.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was at a record low with the country&#8217;s central bank expected to hold interest rates at 8.5% later on Thursday.



The decision would come days before Turkey&#8217;s presidential runoff elections where incumbent Tayyip Erdogan, whose unorthodox monetary policies have been unpopular with investors, is widely expected to emerge victorious.



&#8220;Turkey has been largely uninvestable for foreign investors for a while now, so yet another rate cut would increase the need for further capital controls on locals and deteriorate the inflation outlook even further,&#8221; said Erik Meyersson, Chief Emerging Markets Strategist at SEB.



<h2 class="wp-block-heading" id="h-u-s-debt-ceiling-concerns-hurt-south-african-rand-before-rate-decision"><a href="https://www.cnbcafrica.com/2023/u-s-debt-ceiling-concerns-hurt-south-african-rand-before-rate-decision/">U.S. debt ceiling concerns hurt South African rand before rate decision</a></h2>



Turkish authorities&nbsp;asked&nbsp;banks this week to buy treasury eurobonds, after Ankara&#8217;s credit default swaps (CDS) soared following the May 14 first round of the presidential election, sources told Reuters.



South&nbsp;Africa&#8217;s rand&nbsp;ZAR=, which has been pummelled by a crippling power crisis in the country, slipped 0.2% on Thursday as the safe-haven dollar got a boost from the debt ceiling uncertainty.



The South&nbsp;African Reserve Bank (SARB) is expected to hike rates by 25 basis points &#8211; its 10th rate increase in a row &#8211; though some analysts say a larger 50-basis-point hike is also possible, as inflation remains above the central bank&#8217;s target.



&#8220;Should the SARB raise rates by 50bps we expect some short term firming of the ZAR, although the sustainability thereof will be under question as markets refocus on international events,&#8221; said Shaun Murison, a senior market analyst at IG.



&#8220;The higher than expected rate hike, (should it occur), would also be a net negative for GDP in South&nbsp;Africa.&#8221;



The Polish zloty&nbsp;EURPLN=&nbsp;rose 0.2% against the euro, with a member of the country&#8217;s central bank Monetary Policy Committee, Ireneusz Dabrowski,&nbsp;saying&nbsp;rate cuts could be possible by 2023-end.



The broader EM currencies index&nbsp;.MIEM00000CUS&nbsp;was down 0.3%, with the dollar&nbsp;=USD&nbsp;at a two-month high as fears of a U.S debt default mounted after ratings company&nbsp;Fitch&nbsp;put the country&#8217;s credit on negative watch.



Elsewhere, crisis-stricken Sri Lanka should be able to conclude newly launched debt-restructuring talks by September, or November at the latest, its president&nbsp;said&nbsp;on Thursday, adding that the negotiations had made &#8220;remarkable&#8221; progress.



(Reporting by Amruta Khandekar; editing by Mark Heinrich)

Stocks at one-month low; Turkey, South Africa rate decisions on tap

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-820x547.jpg" alt="" class="wp-image-425022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Vessels are seen as they await inspection under the Black Sea Grain Initiative, brokered by the United Nations and Turkey, in the southern anchorage of the Bosphorus in Istanbul, Turkey December 11, 2022. REUTERS/Yoruk Isik</figcaption></figure>



UNITED NATIONS, May 24 (Reuters)&nbsp;&#8211;&nbsp;The United Nations is working with the&nbsp;African Export-Import Bank (Afreximbank) to create a platform to help process transactions for Russian exports of grain and fertilizer to&nbsp;Africa, the top U.N. trade official told Reuters on Wednesday.



An agreement struck in July last year requires the U.N. to help Russia overcome any obstacles to its grain and fertilizer exports for three years. It was reached at the same time as a deal allowing the safe Black Sea export of food and fertilizer from Ukraine following Russia&#8217;s February 2022 invasion.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D31Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">deals</a>&nbsp;were intended to ease a global good crisis that the United Nations said was worsened by the war because both countries produce grain and fertilizer for world markets, particularly in&nbsp;Africa&nbsp;and the Middle East.



&#8220;We have not turned the corner on this,&#8221; Rebeca Grynspan, who leads the implementation of the U.N. deal with Russia, said in an interview, describing the Black Sea accord and pact between the U.N. and Russia as continuing to &#8220;be a life line for food security&#8221; around the world.



The Black Sea deal was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D2LU&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">extended</a>&nbsp;last week for the third time after Russia agreed to a further two months. But Moscow has been threatening to quit unless a list of&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D31Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">demands</a>&nbsp;to improve its own food and fertilizer exports is met.



<h2 class="wp-block-heading" id="h-agile-transactions">&#8216;AGILE TRANSACTIONS&#8217;</h2>



Russia&#8217;s agricultural exports are not subject to Western sanctions imposed over the invasion of Ukraine, but Moscow says there are restrictions on payments, logistics and insurance and a wider chilling effect from the measures. The United States and others have dismissed Russia&#8217;s complaints.



Grynspan said she was working with Afreximbank to try to help small and medium-sized countries in&nbsp;Africa&nbsp;combat disrupted trading and access Russian grain and fertilizer through &#8220;more agile transactions.&#8221;



&#8220;We are working with them (Afreximbank) and making a platform that will allow for a more agile due diligence with the clients to comply with the sanctions, but allow for the transactions of food and fertilizers with&nbsp;Africa,&#8221; she said.



Cairo-based Afreximbank was not immediately available for comment. Grynspan did not share any further details as discussions continue.



Russia&#8217;s agricultural bank, known as Rosselkhozbank, was cut off from the SWIFT international payment network by the European Union in June. Russia wants it reconnected, but the EU has said it was not considering reinstatement of Russian banks.



As an alternative, U.S. bank JPMorgan Chase &amp; Co has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N31Z00M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">processed</a>&nbsp;some Russian grain export payments, sources told Reuters last month, and could process&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3703VD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">dozens</a>&nbsp;more. But Russia has dismissed this as unsuitable in the longer term.



Some 260,000 metric tonnes of Russian fertilizer has also been stuck in several European ports. Moscow said the fertilizer would be donated to countries in need.



The United Nations helped arrange for the release of the first two shipments, to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AW1N32503D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Malawi</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N36P003&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Kenya</a>. A delivery was also planned for Nigeria and possibly Sri Lanka and South&nbsp;Africa, Grynspan said.



(Reporting by Michelle Nichols; editing by Grant McCool)

FILE PHOTO: Vessels are seen as they await inspection under the Black Sea Grain Initiative in the southern anchorage of the Bosphorus in Istanbul

UN, Africa bank work to ease Russian grain, fertilizer exports -UN official

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-820x547.jpg" alt="" class="wp-image-422542" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Akinwumi Ayodeji Adesina, president of the African Development Bank, speaks during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 17, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum in Davos from Jan. 17 &#8211; 20. Photographer: Jason Alden/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 24 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth is set to edge upwards in 2023 and 2024 amid tighter global monetary policy and the fallout from Russia&#8217;s invasion of Ukraine, but South Africa&#8217;s will plummet, the African Development Bank (AfDB) said.



The continent&#8217;s GDP growth is projected to rise to 4% this year and 4.3% in 2024 after a 3.8% expansion last year, the AfDB said in its annual African Economic Outlook on Wednesday.



However, GDP growth was still some way below the 4.8% expansion in 2021, the lender found.



AfDB President Akinwumi Adesina called for &#8220;cautious optimism&#8221; in the face of risks including high global interest rates and a strong dollar while the continuing war in Ukraine could worsen food insecurity and push up prices further.



Growth in the continent&#8217;s southern region is projected to slow sharply to 1.6% this year from 2.7% last year, dragged down by poor economic performance in South Africa, where scheduled power cuts of up to 10 hours a day have stymied the economy.



In a sharp downward revision, the AfDB now forecasts the continent&#8217;s most industrialised economy to grow by only 0.2% in 2023 and 1.5% next year.



Average African inflation is set to accelerate again this year to 15.1%, from 14.2% in 2022, the report said.



The average debt-to-GDP ratio in Africa is expected to be 66% this year and 65% next year, the AfDB said, noting a rise in domestic debt.



&#8220;Domestic debt restructuring, therefore, should be part of the negotiations for the resolution of public debt crises in countries facing heightened risks,&#8221; it said.



AfDB economic forecasts&nbsp;<a href="https://tmsnrt.rs/3MT0LJL" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3MT0LJL</a>



(Reporting by Rachel Savage; Editing by Karin Strohecker and David Goodman)

Opening Day Of The World Economic Forum (WEF) 2017

African GDP growth to edge up in 2023 despite South Africa slide -AfDB

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



May 23 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks were pulled down on Tuesday by concerns around China&#8217;s uneven economic recovery and uncertainty over a U.S. debt ceiling deal, while the Hungary&#8217;s forint weakened ahead of a widely expected interest rate cut



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was down 0.2% by 0826 GMT, slipping from a two-week high hit earlier in the session, while currencies&nbsp;.MIEM00000CUS&nbsp;were 0.1% lower.



China&#8217;s blue-chip stocks&nbsp;.CSI300&nbsp;fell 1.4% as investors remained concerned that the country&#8217;s post-pandemic recovery was on a weak footing after a slew of downbeat data in April, while leaders of the Group of Seven (G7) rich democracies&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J0V4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pledged</a>&nbsp;to &#8220;de-risk&#8221; without &#8220;decoupling&#8221; from China.



The yuan&nbsp;CNY=CFXS&nbsp;inched closer to five-month lows hit recently as the dollar firmed following hawkish comments from some Federal Reserve officials and after U.S. President Joe Biden and House Speaker Kevin McCarthy&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J0TM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">failed to reach</a>&nbsp;an agreement on Monday on raising the debt ceiling.



The Hungarian forint&nbsp;EURHUF=&nbsp;eased 0.6% against the euro ahead of a local monetary policy decision where analysts expect the National Bank of Hungary (NBH) to deliver the region&#8217;s first interest rate cut since 2021.



A majority of economists polled by Reuters&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37F1QS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">projected</a>&nbsp;a 100 bps cut in the one-day rate to 17%, given a pullback in gas prices and consumer demand.



&#8220;I would say that the market is okay (with) the story of the normalisation of NBH and the pressure on the forint is not that high,&#8221; said Frantisek Taborsky, EMEA FX strategist at ING.



&#8220;Of course we can see some weakness after the decision but in general I think that the forint is still a very good currency for the market because the carry or the interest rate differential is still very high despite the possible rate cut today.&#8221;



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;gained 0.1% versus the euro. Data showed Polish retail sales fell 7.3% year-on-year in April, less than a 7.8% decline forecast by analysts.



While EM currencies started 2023 on a strong note, they have been pressured in recent weeks by signs of weak economic recovery in China and as the U.S. debt ceiling standoff stokes fears of a hit to global growth.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;languished at record lows as markets braced for a presidential runoff vote where incumbent Tayyip Erdogan is widely expected to be re-elected and to continue with his unorthodox monetary policies.



Turkish central bank&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37K0L7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">gross reserves</a>&nbsp;are expected to have fallen some $3.5 billion to about $101.5 billion last week, calculations of five bankers showed on Tuesday.



Elsewhere, holders of Ghana&#8217;s international bonds face a principal write down of 30% and a cut to coupons of 20% in an upcoming debt restructuring, Morgan Stanley&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37J4NP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Monday.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; Editing by Kirsten Donovan)

EM stocks slip, Hungary’s forint weakens ahead of rate decision

<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>



May 22 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks gained on Monday as hopes of improved Sino-U.S. relations buoyed equities in China following remarks from U.S. President Joe Biden, while the Turkish lira continued to languish at record lows.



MSCI&#8217;s emerging market equities index&nbsp;.MSCIEF&nbsp;was up 0.6% at 0849 GMT, with stocks in mainland China&nbsp;.CSI300&nbsp;logging similar gains and snapping four straight sessions of losses.



Following a raft of weak data in April which signalled weak consumer demand in the world&#8217;s second largest economy and soured sentiment towards China&#8217;s stocks, the country&#8217;s central bank has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J07R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">vowed</a>&nbsp;to support economic growth.



Also aiding the market mood, U.S. President Joe Biden&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37I079&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;he expected a thaw in frosty relations with China &#8220;shortly&#8221; after strains caused by an incident earlier this year.



The Chinese yuan&nbsp;CNY=&nbsp;gave up early gains to fall 0.3% as China&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J037&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">kept</a>&nbsp;its benchmark lending rates unchanged for the ninth month, in line with market expectations.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was at a record low of 19.82 against the dollar, having steadily weakened following the outcome of the first round of presidential elections last week.



Incumbent Tayyip Erdogan&#8217;s lead over his main rival disappointed investors hoping for an opposition win and a return to orthodox monetary policies.



Data&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AAPN0WFB23&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">showed</a>&nbsp;Turkey&#8217;s consumer confidence index rose 4.1% to 91.1 points in May, continuing an upward trend ahead of a second round of votes later this month.



&#8220;Until the 2nd round of the presidential election, the central bank will certainly try its best to prevent a TRY crash,&#8221; said Ulrich Leuchtmann, head of FX and commodity research at Commerzbank, in a note.



&#8220;However, it cannot work magic. Even before the second round of voting, a scenario is possible in which the dams burst and the lira takes a depreciation hit.&#8221;



Erdogan will attend a meeting in Istanbul on Monday while Sinan Ogan, Turkey&#8217;s nationalist presidential candidate who finished third in the initial vote, is expected to announce a decision on him endorsing either Erdogan or his rival Kemal Kilicdaroglu in the runoff vote.



Among central and eastern European currencies, the Polish zloty&nbsp;EURPLN=&nbsp;rose 0.2% against the euro following a slew of economic data.



Polish&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N36A08S&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">corporate sector wages</a>&nbsp;rose by an annual 12.1% in April, in line with expectations, while growth in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N36A08O&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">producer prices</a>&nbsp;was below estimates.



The broader EM currencies index&nbsp;.MIEM00000CUS&nbsp;was largely unchanged, with the dollar&nbsp;=USD&nbsp;steady as U.S. debt ceiling negotiations were&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37I018&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">set to resume</a>&nbsp;after a setback late last week.



President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling later in the day, after a phone call on Sunday which both sides described as positive.



Elsewhere, the Bank of Israel is expected to hike rates on Monday given high inflation.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; Editing by Jan Harvey)

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Stocks at one-month low; Turkey, South Africa rate decisions on tap

UN, Africa bank work to ease Russian grain, fertilizer exports -UN official

African GDP growth to edge up in 2023 despite South Africa slide -AfDB

EM stocks slip, Hungary’s forint weakens ahead of rate decision

Stocks gain on hopes of improved Sino-U.S. relations, FX muted

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Economy

Stocks extend fall, rouble languishes at 15-month low after failed mutiny

Stocks fall for second day as China’s rate cut disappoints

India’s EXIM Bank plans to step up funding for African countries

Africa needs grain imports, key states say ahead of Putin talks

China stimulus hopes boost stocks, FX muted as Fed signals rate hikes

Stocks, FX subdued with all eyes on Fed rate decision

Stocks rise ahead of major cenbank decisions; Turkey’s lira weakens

What are governments doing to ease inflation pain?

World Bank lifts 2023 global growth forecasts, but cuts next year’s outlook

S&P sees weaker 2023 growth in key African economies as tailwinds fade

Musicians launch drive for more funding for arts in Africa

FX set for weekly losses, Turkey’s lira falls to record low against dollar

Stocks at one-month low; Turkey, South Africa rate decisions on tap

UN, Africa bank work to ease Russian grain, fertilizer exports -UN official

African GDP growth to edge up in 2023 despite South Africa slide -AfDB

EM stocks slip, Hungary’s forint weakens ahead of rate decision

Stocks gain on hopes of improved Sino-U.S. relations, FX muted

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