<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-820x547.jpg" alt="" class="wp-image-410759" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-1230484171-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Biden&#8217;s former counselor Don Graves, nominee for Deputy Secretary of Commerce, speaks after being nominated by US President-elect Joe Biden at The Queen theater January 8, 2021 in Wilmington, Delaware. &#8211; Biden and Harris announced on January 8, 2021 the following nominees for their economic and jobs team: for Secretary of Commerce, Rhode Island Governor Gina Raimondo; for Secretary of Labor, Boston Mayor Marty Walsh; for Small Business Administrator, California official Isabel Guzman; and for Deputy Secretary of Commerce, Biden&#8217;s former counselor Don Graves. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)</figcaption></figure>



WASHINGTON, July 28 (Reuters) &#8211; The Biden administration plans to tap the African diaspora in the United States to bolster trade with Africa, a U.S. official said on Wednesday, in a push to work with people who understand &#8220;social nuances&#8221; on the continent.



Working with diaspora-owned enterprises is part of the revival of Prosper Africa, an initiative begun by former President Donald Trump in 2018 that the Biden administration aims to make the &#8220;centerpiece of U.S. economic and commercial engagement with Africa.&#8221;



Speaking at the U.S.-Africa Business Summit on Wednesday, U.S. Deputy Secretary of Commerce Don Graves said the diaspora can overcome a major impediment to doing business overseas: cultural gaps.



Read more: <a href="Op-Ed: The Future of Africa’s">Op-Ed: The Future of Africa’s</a><a href="https://www.cnbcafrica.com/2019/op-ed-the-future-of-africas-diaspora-is-in-africa/"> diaspora is in Africa</a>



&#8220;America&#8217;s African diaspora has a tremendous advantage in African markets relative to their peers, because they understand the market dynamics and social nuances better than anyone else,&#8221; Graves said.



Prosper Africa will focus on clean energy, health, agribusiness and transportation infrastructure. President Joe Biden, who requested nearly $80 million for the initiative in his budget proposal in May, aims to focus it on women and equity, with an expanded role for small- and medium-sized businesses.



<div class="wp-block-group"><div class="wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow">
How remittances from Africa’s diaspora can help revive economies


</div></div>



For one member of the African diaspora community, past experience with a similar initiative shows the difficulty of getting the message out to businesses.



&#8220;Information on such programs usually does not get to the people who need to know about it, because of the way it&#8217;s disseminated,&#8221; said Omega Tawonezi, executive director of Immigrant Community Services, who works with U.S.-based African entrepreneurs. 



(Reporting by Doyinsola Oladipo; Editing by Mary Milliken and Grant McCool)

US-POLITICS-BIDEN

U.S. looks to leverage African diaspora in trade with Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE-820x547.jpg" alt="" class="wp-image-410667" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/Y5FYSUIMTZL3LDBWI72FJTYNUE.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>An aerial view shows wooden pontoons equipped to dredge the seabed for deposits of tin ore off the coast of Toboali, on the southern shores of the island of Bangka, Indonesia, May 1, 2021. Picture taken with a drone. REUTERS/Willy Kurniawan/File Photo</figcaption></figure>



July 27 (Reuters) &#8211; African countries, many of which are heavily reliant on mining, have criticised a move by the tiny Pacific island nation of Nauru to fast-track international negotiations over deep-sea mining, an industry that could hurt their economies.



Nauru last month set a two-year deadline for rules governing deep-sea mining in international waters to be finalised. Nauru triggered the so-called &#8220;two-year rule&#8221;, which allows for a mining plan to be approved after two years under whatever rules are in place at that time.



The task of agreeing on regulations by mid-2023 is &#8220;seemingly insurmountable&#8221; as the global pandemic constrains countries&#8217; ability to negotiate, the African Group said in a letter to the Council of the International Seabed Authority, a U.N. body tasked with drawing up regulations for the new industry.



<h3 class="wp-block-heading" id="h-read-more-south-african-regulator-to-fast-track-kpmg-investigation">Read more: <a href="https://www.cnbcafrica.com/2017/south-african-regulator-fast-track-kpmg-investigation/">South African regulator to fast-track KPMG investigation</a></h3>



The ISA said meetings of the Council are expected to resume &#8220;before the end of the year&#8221;. Nauru&#8217;s ambassador to the ISA did not immediately reply to a request for comment.



The African Group, one of several regional groupings at the ISA, represents 47 nations including the world&#8217;s top producers of manganese and cobalt &#8211; South Africa and Democratic Republic of Congo, respectively.



Those countries&#8217; economies, along with many others in Africa, rely heavily on mining and could be negatively impacted by mining of seabed rocks called &#8220;polymetallic nodules&#8221; that contain manganese, copper, nickel, and cobalt.



The nodules are typically composed of 28.4% manganese, 1.3% nickel, 1.1% copper and 0.2% cobalt, according to research house CRU.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/uk-regulator-says-will-fast-track-vaccines-for-coronavirus-variants/">UK regulator says will fast-track vaccines for coronavirus variants</a></h3>



In the letter, the African Group said a prerequisite for any seabed mining &#8220;is a financial regime that properly compensates humanity for its resources and land-based miners for their losses.&#8221;



Under the United Nations Convention of the Law of the Sea (UNCLOS), resources in international waters are the common heritage of mankind, and revenues from those resources must be shared among all countries.



In a 2019 report to the ISA, the Massachusetts Institute of Technology (MIT) said it assumed most revenues taken in by the ISA from seabed mining would go to mining-dependent developing countries to compensate them for the impact on their economies.



Most countries vulnerable to competition from seabed minerals are in Africa, a May 2020 study commissioned by the Secretariat of the ISA found, with Congo, Gabon, Madagascar, and Zambia especially likely to be impacted. 



(Reporting by Helen Reid and Jeff Lewis; editing by David Evans)

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African nations criticise push to fast-track deep-sea mining 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/copper-1711056_1920-820x547.jpg" alt="" class="wp-image-403458" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/copper-1711056_1920-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/copper-1711056_1920-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/copper-1711056_1920-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/copper-1711056_1920-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/copper-1711056_1920.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Pixabay</figcaption></figure>



LONDON/JOHANNESBURG, July 27 (Reuters) &#8211; Crime gangs have stolen dozens of truckloads of copper owned by miners and traders including Glencore, Trafigura and Traxys this year as they were heading to ports in southern Africa, three sources with direct knowledge of the matter said.



Record high copper prices have triggered an increase in hijackings in recent months in Botswana, the Democratic Republic of Congo, South Africa, Tanzania and Zambia, said the sources who declined to be named due to the sensitivity of the matter.



The South African Police Service told Reuters that the matter was being investigated, but declined to give further details.



Glencore declined to comment. Trafigura said it did not comment on security issues. Traxys did not respond to requests for comment.



<h3 class="wp-block-heading" id="h-read-more-copper-sprints-to-record-high-as-investors-fear-missing-out">Read more: <a href="https://www.cnbcafrica.com/2021/copper-sprints-to-record-high-as-investors-fear-missing-out/">Copper sprints to record high as investors fear missing out</a></h3>



Copper mined in Zambia and Congo, which accounts for about 10% of global supplies estimated at 24 million tonnes, is transported to ports across southern Africa.



A total of 66 trucks carrying copper were robbed between January and May this year, and 60% of the hijackings occurred in South Africa, one of the sources said.



With the average truck carrying between 32 and 34 tonnes of copper cathode, the thefts would amount to roughly $21 million worth of copper at current prices.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/copper-is-the-new-oil-and-low-inventories-could-push-it-to-20000-per-ton-analysts-say/">Copper is ‘the new oil’ and low inventories could push it to $20,000 per ton, analysts say</a></h3>



More trucks were stolen in June and July, according to the source, who did not provide figures for those months but said one truckload of the copper stolen on July 9 was worth $470,000.



Organised crime gangs melt down copper to remove serial numbers and other marks of ownership, and then resell it locally or transport it by truck to be sold in neighbouring countries, two sources said.



Copper prices hit an all-time high above $10,700 a tonne in May thanks to a rebound in global demand, including in top consumer China, as manufacturing activity ramped up and economies reopened after COVID-19 lockdowns.



Currently at around $9,700, prices of the metals used widely in the power and construction industries have climbed more than 50% over the past 12 months. 



(Reporting by Zandi Shabalala and Helen Reid; Editing by Pratima Desai and Pravin Char)

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Bandits steal truckloads of copper worth millions in southern Africa – sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-820x547.jpg" alt="" class="wp-image-410497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/50782991392_4feddee788_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A health worker preparing to extract a dose of vaccine from a vial. Photo: via Flickr</figcaption></figure>



JOHANNESBURG, July 26 (Reuters) &#8211; Major sub-Saharan African central banks are expected to keep interest rates on hold this week as the region&#8217;s recovery lags the rest of the world due to much slower COVID-19 vaccination rollouts, a Reuters poll found on Monday.



In a poll conducted last week, central banks in Ghana, Kenya and Nigeria were forecast to keep benchmark rates unchanged at 13.5%, 7.0% and 11.5%, respectively, like continental peer South Africa did just days ago.



&#8220;The Bank of Ghana already surprised with its late-cycle 100 basis points cut in May so will not need to ease again so soon,&#8221; said Razia Khan, head of Africa macro research at Standard Chartered.



&#8220;In Kenya, monetary policy remains accommodative as IMF-led fiscal consolidation is underway. In Nigeria, although inflation has started to decelerate year-on-year, it remains high – there is not any room to cut,&#8221; added Khan.



The poll also showed the region&#8217;s growth rate was expected to recover to 3.8% this year and 3.9% next year, from a World Bank estimate of a 2.4% contraction last year.



<h3 class="wp-block-heading" id="h-read-more-africa-still-lags-the-rest-of-the-world-in-generating-new-scientific-knowledge-this-is-how-to-fix-it">Read more: <a href="https://www.cnbcafrica.com/2018/africa-lags-world-in-science/">Africa still lags the rest of the world in generating new scientific knowledge, this is how to fix it…</a></h3>



However, the gap between forecasts was wide: one analyst expected no growth at all due to the uncertainty of the pandemic and slow vaccine rollouts.



Africa&#8217;s much younger population has meant the virus has been less deadly on the continent compared with other parts of the world although virus mutations &#8211; especially Delta &#8211; threaten to torpedo local economic recoveries.



The sub-Saharan region is in a rising second wave and a darkening outlook, Goldman Sachs analysts wrote in a note.



&#8220;Our findings imply that the spread of COVID-19 in SSA is higher than measured and likely to continue. The tools available to fight the disease are limited, with strict lockdowns too costly and the vaccination schedule light and slow,&#8221; they wrote.



&#8220;Together, this points to the African recovery lagging the global one, through multiple channels: comparatively light, but still costly domestic lockdowns would restrict the services industry, a key source of growth in recent years, and tourism in particular would continue to suffer.&#8221;



Read more: <a href="https://www.cnbcafrica.com/2021/nigerian-growth-lags-africa-poverty-rising-says-world-bank/">Nigerian growth lags Africa, poverty rising, says World Bank</a>



The usually strong tourism performance of east Africa&#8217;s biggest economy, Kenya, is very much in question as the services sector has not yet shaken off the impact from COVID-19.



Africa, battling a third wave of infections, has administered just 60 million vaccine doses in a population of 1.3 billion due to restrictions on shipments from vaccine producing nations like India.



<a href="https://www.cnbcafrica.com/2021/pfizer-biontech-strike-south-africa-covid-19-manufacturing-deal-with-biovac/">Pfizer and BioNTech struck a deal for South Africa&#8217;s Biovac Institute</a> on Wednesday to help manufacture around 100 million doses a year of their COVID-19 vaccine for the African Union.



An African Union special envoy on Thursday said global pharmaceutical firms should license production of COVID-19 vaccines in Africa rather than just do piecemeal contract deals.



Capital Economics analysts noted the upshot is that containment measures will probably have to stay in place for some time, holding back economic recoveries as policymakers may have to contend with further virus flare-ups.



(Reporting and polling by Vuyani Ndaba; Editing by SImon Cameron-Moore)

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Key African rates to hold steady as vaccination lags restrain recovery

July 23 (Reuters) &#8211; Most emerging market stocks and currencies headed on Friday for weekly losses on fears that a rise in COVID-19 cases could dent an economic recovery, while Russia&#8217;s rouble edged lower ahead of a possible interest rate hike.



MSCI&#8217;s index of emerging market (EM) equities fell 0.6%, and was set to lose about 1.6% this week, as it struggled to recover from a steep selldown earlier in the week.



MSCI&#8217;s currency index fell 0.1%, and was set to lose 0.4% this week.



South Africa&#8217;s rand lagged its EM peers with a 0.6% fall. Concerns over renewed violence in the country, as well as dovish comments from the central bank put the rand on course for a 2.3% weekly loss, making it the worst EM performer this week.



South African stocks jumped 0.8% on Friday, marking a strong comeback from <a href="https://www.cnbcafrica.com/2021/stocks-extend-losses-into-fourth-day-rand-leads-fx-lower/">losses earlier in the week</a>.



Russia&#8217;s rouble fell 0.3% on Friday, but fared better than most of its peers in Europe, the Middle East, and Africa (EMEA) this week as investors pencilled in a possible 100 basis point interest rate hike by the central bank later in the day.



Recent volatility in the rouble, driven by swings in the oil market and a spike in inflation, have primed the central bank to raise rates to 6.5%, putting them at the upper end of EM rates.



&#8220;Beyond today’s hike, if CBR were to indicate through its statement that further hikes are likely in the coming meetings, that would qualify as a slight hawkish surprise in our view, and support the exchange rate,&#8221; Tatha Ghose, FX and EM analyst at Commerzbank, wrote in a note.



Most EMEA stocks were flat. Hungarian stocks fell 0.1%, while the forint was muted against the euro as the European Union sought a two-month delay in talks over the country&#8217;s pandemic recovery plan.



Relief funding is likely to be delayed over contested issues as part of an &#8220;ideological war&#8221; with Brussels, nationalist Hungarian Prime Minister Viktor Orban said.



But weakness in the euro, following dovish comments from the European Central Bank, helped most other central European currencies gain. 



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick; Editing by Mark Heinrich)

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

Russian central bank set to hike rates

July 22 (Reuters) &#8211; Emerging market stocks and currencies recovered from recent falls on Thursday on optimism over the second-quarter earnings season, with South Africa&#8217;s rand up 0.4% ahead of a central bank meeting.



MSCI&#8217;s index of emerging market (EM) stocks jumped 1% and was headed for its best day since early June. The index had lost as much as 2.6% this week, before arresting its fall late Wednesday.



Improving sentiment over the second-quarter earnings season helped investors look past possible economic ructions caused by a rise in global COVID-19 cases, fears of which had spurred sell-offs in recent sessions.



MSCI&#8217;s currency index jumped 0.3% and was set for its best day in nearly a month, with most EM currencies benefiting from a dip in the dollar and other safe havens.



South Africa&#8217;s rand led gains across currencies in Europe, the Middle East and Africa (EMEA).



The central bank is largely expected to keep interest rates at a <a href="https://www.cnbcafrica.com/2021/south-african-central-bank-holds-repo-rate-at-3-5/">record low of 3.5%</a>, with the economy still under pressure from the pandemic and recent violence.



&#8220;Inflation data doesn&#8217;t provide the Monetary Policy Committee (MPC) a single reason to bring forward policy normalization, especially in light of recent events (COVID-related restrictions and Zuma riots) which represent marginal downside risk for economic recovery,&#8221; Credit Suisse analysts wrote in a note.



&#8220;We expect the MPC to leave the policy rate unchanged, at 3.5%, but hint to the beginning of a policy normalization cycle closer to the year-end.&#8221;



One-month dollar options on the rand also came off recent peaks, indicating market expectations for a change in policy were largely nil.



The economic hit from the pandemic had prompted most EM central banks to cut interest rates to support growth. But with vaccinations picking up and more economies reopening, several banks have begun hiking cycles.



In central Europe, Hungary&#8217;s forint rose slightly to the euro after Deputy Central Bank Governor Barnabas Virag said the bank will continue its cycle of rate rises until inflation returns near its 3% policy target.



The Hungarian central bank was the first European Union bank to launch a rate hiking cycle this year, amid rising inflation.



Investors were also watching for economic cues from a European Central Bank meeting scheduled later in the day.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick; Editing by Subhranshu Sahu)

South African Economy As Inflation Rate Rises For First Time In 2017

Bounce back; South African rand up before rate decision

LONDON, July 21 (Reuters) – While top central banks such as the Federal Reserve, the ECB and the Bank of Japan may be sitting on their hands as inflation rises, many of their peers in the big developing economies aren’t taking any chances.



Brazil and Russia have already raised interest rates three times this year. China had been in tightening mode until a wobble this month, while Mexico, the Czech Republic and Hungary have all just made their first moves in years. And it looks like just the start.



Despite this week’s global market squalls, a daily JPMorgan reading of financial pricing shows the 18 top emerging markets are expected to deliver the equivalent of 73 standard-sized, 25-basis-point interest rate hikes over the next 12 months, and just over 100 in the next two years.



So where are the biggest moves likely to be? How long could these hiking cycles last? And who are the outliers?



<h2 class="wp-block-heading">RUSSIA</h2>



Russia has already hiked three times this year. But with inflation running at its hottest in five years, the central bank is expected to whack interest rates up another 100 basis points on Friday to 6.50%.



Will it stop there? Bank of America and Oxford Economics think so, but JPMorgan reckons it will push on to 7% while Capital Economics has forecast 7.25% before year-end.



<h2 class="wp-block-heading">BRAZIL</h2>



A survey of more than 100 economists by Brazil’s central bank on Monday predicted its 4.25% benchmark rate will jump to 6.75% by year-end.



Most economists think another hike of at least 75 basis points on Aug. 4 is likely, but 12-month market pricing shows roughly 370 basis points worth of raises, which would leave them near 8% – that’s a long way from the 2% they were at as recently as March.



<h2 class="wp-block-heading">MEXICO</h2>



Mexico took economists by surprise last month when it delivered its first rate increase since 2018. Consensus is for it to lift them another 125 bps by year-end and 175 bps by this time next year, although UBS thinks forward rate agreements (FRA) are pricing in as much as 200 bps.



<h2 class="wp-block-heading">CHINA</h2>



Big beast China had been steadily tightening monetary policy until some wobbly economic data triggered a reversal this month in the shape of a cut to banks’ reserve requirements.



JPMorgan’s pricing charts still point to a fractional 14 bps worth of tightening over the next year, but that is half of what it was in early May.



<h2 class="wp-block-heading">INDIA</h2>



India’s headline consumer price inflation hanging around 6% ever since the crisis struck 18 months ago has been one of the puzzles of the pandemic.



It’s a big oil importer, so the sharp rise in crude prices over the last year will keep the pressure on. Economists don’t expect moves to normalise central bank policy – i.e. narrowing of the policy corridor by raising the reverse repo rate – any time soon. But it is being priced for early next year with the equivalent of seven 25-bps hikes then priced over two years.



<h2 class="wp-block-heading">SOUTH AFRICA</h2>



According to UBS, markets were pricing in as many as five South African rate hikes over the next 12 months before protests boiled over last week. The central bank will probably stay on hold on Thursday but may well prepare markets for an increase in September and potentially another in November.



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



Hungary and the Czech Republic are leading the charge for eastern Europe after both hiked a day apart from each other in June.



JPMorgan sees the Czechs hiking again in September and November, as well as an outside chance of an August surprise. Hungary is expected to repeat June’s 30-bps hike next week and add further 15 bps increments in September and December. Poland meanwhile is the lagard.



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



South Korea could become the first Asian economy to hike next month with inflation running up and amid concerns about an overheating property market and household debt stress.



Colombia is second behind Brazil in terms of market pricing of future hikes, although protests, some poor data and the loss of two investment grade ratings in quick succession mean lift-off might not happen until September.



Chile is seen hoisting its 0.5% rates to 2% between now and the end of the year. Kazakhstan’s 9% inflation is expected to see it move too, while Ukraine, which has hiked twice already this year, has 9.5% inflation analysts at BlueBay highlight.



<h2 class="wp-block-heading" id="h-the-outliers">THE OUTLIERS</h2>



New COVID waves will likely keep other Asian countries such as Indonesia, Malaysia, the Philippines and Thailand on hold.



President Tayyip Erdogan’s pressure means Turkey is the only heavyweight emerging market priced to make a significant-sized cut in the next 12 months. Yet the 100-basis-point drop priced into JPMorgan’s markets data would only take them down to 18% – still the highest rate of any sizable world economy.



(Additional graphics by Saikat Chatterjee and Karin Strohecker; Editing by Andrew Heavens)



(c) Copyright Thomson Reuters 2021. Click For Restrictions – https://agency.reuters.com/en/copyright.html

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For most emerging market central banks, the only way is up

July 21 (Reuters) &#8211; South Africa&#8217;s rand led losses across emerging market currencies on Wednesday as commodity prices retreated, while stocks extended declines into a fourth session as the virus-driven risk-off sentiment persisted.



The rand fell 0.8% and was the worst performer in Europe, Middle East and Africa (EMEA), as a drop in iron ore, base metal and gold prices added to pressure from broader weakness in sentiment.



Easing June inflation data also pointed to the South African central bank standing pat on interest rates at its Thursday meeting. The country&#8217;s benchmark lending rate currently stands at a <a href="https://bit.ly/3iw4BZ3">record-low 3.5%</a>. 



High-yielding currencies such as the rand tend to demonstrate bigger swings in response to changing sentiment.



In broader emerging markets (EM), MSCI&#8217;s index of currencies extended losses into a fourth straight day. While the pace of losses appeared to be slowing, EMs remained under pressure from concerns over the Delta COVID variant.



The dollar continued to rise on safe-haven demand.



MSCI&#8217;s index of EM stocks fell 0.2%, extending losses into a fourth straight session. The index has lost nearly 3% over the past three days, and has nearly lost all of its gains so far this year.



Most bourses in EMEA rose on Wednesday. A bulk of the index&#8217;s losses came from Asia, where rising cases of the Delta variant eroded sentiment.



But some analysts said the recent losses in EM stocks could make them attractive for bargain buys, especially if a vaccine-led economic recovery picks up steam this year.



&#8220;Given the combination of tailwinds and relatively appealing valuations, we expect the MSCI Emerging Markets index to gain around 10% by the end of December and 14% by June 2022, outperforming global equities,&#8221; Mark Haefele, chief investment officer Global Wealth Management, UBS, wrote in a note.



Haefele added that if the current rate of vaccinations in EMs is to continue, the median rate of vaccinations in EM by the year-end would be about 65% of the population.



Russia&#8217;s rouble fell 0.3%, tracking losses in oil prices. Crude prices were hit by a surprise rise in U.S. oil inventories, as well as concerns over waning demand due to COVID-19.



Central European currencies retreated against the euro and dollar.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick)

World map with charts and graphs as symbols of global finance

Stocks extend losses into fourth day, rand leads FX lower

LONDON, July 20 (Reuters) – Copper on Tuesday recovered some of its losses in the previous session, when surging coronavirus infection rates triggered a sell-off of assets like metals, equities and oil that benefit from economic growth.



Benchmark copper on the London Metal Exchange (LME) was up 0.5% at $9,265.50 a tonne by 1102 GMT after falling 2.2% on Monday.



Prices reached a record high of $10,747.50 in May.



“The situation is changed in copper, which argues for a lower trading range,” said independent analyst Robin Bhar.



“Fundamentals are weaker than a few months ago. Demand is down, China is slowing and we’re definitely seeing less tightness in supply,” he said.



MARKETS: European shares on Tuesday bounced back from their worst day of the year and oil edged higher.



But the dollar added to its gains, making metals costlier for non-U.S. buyers, and U.S. 10-year bond yields hit five-month lows amid fears that the spread of the Delta coronavirus variant could derail economic recovery.



STOCKS: On-warrant copper stocks in LME-registered warehouses rose to 212,725 tonnes, the highest since May 2020.



However, inventories in Shanghai Futures Exchange (ShFE) and Comex exchange warehouses are falling. &lt;CU-STX-SGH&gt; &lt;HG-STX-COMEX&gt;



PERU: Peru’s electoral authority named socialist Pedro Castillo president. Peru is the world’s second-largest copper-producer, and Castillo has pledged to hike taxes on miners.



VALE: Brazilian miner Vale said it was reviewing its guidance for 2021 nickel and copper output after strikes and “extraordinary climate conditions” affected production.



LEAD/ZINC: The global lead market was 32,800 tonnes oversupplied in May and the zinc market was 17,900 tonnes undersupplied, the International Lead and Zinc Study Group (ILZSG) said.



ALUMINIUM: Global primary aluminium output fell to 5.549 million tonnes in June from a revised 5.75 million tonnes in May, the International Aluminium Institute (IAI) said.



PRICES: Aluminium was up 0.7% at $2,442 a tonne, zinc fell 0.7% to $2,957, lead rose 0.6% to $2,298.50, tin added 0.4% to $33,500 and nickel was 0.4% higher at $18,540.



(Reporting by Peter Hobson Additional reporting by Mai Nguyen Editing by Steve Orlofsky)

ShawnHempel_AdobeStock_copperbars_012621

Copper steadies after rising COVID infections knock prices

July 20 (Reuters) &#8211; Emerging market currencies appeared to have stabilized, while stocks sank further on Tuesday as worries over rising cases of COVID-19&#8217;s Delta variant drove broad moves out of risk-driven assets.



MSCI&#8217;s index of emerging market (EM) currencies fell about 0.07%, after tumbling 0.4% on Monday in its worst day in a month.



In Europe, the Middle East, and Africa (EMEA), the South African rand and Russian rouble rose about 0.2% each, while most other currencies inched lower.



MSCI&#8217;s index of EM stocks fell 0.5%, extending a 1.7% slide from Monday as rising Delta cases across the globe sowed fears of slowing economic growth, even as several countries began scaling back COVID-related curbs.



Most EMEA stock indexes rose on Tuesday.



Safe havens such as the dollar and the Japanese yen surged on renewed demand.



&#8220;The spread of the Delta variant is not going to suddenly stop and will therefore continue to occupy the markets,&#8221; You-Na Park-Heger, FX and EM analyst at Commerzbank wrote in a note.



&#8220;The summer blues might well continue a little longer. Of course, that does not mean that the sell-off will continue at the same speed, but it looks as if the party is over for financial markets for now.&#8221;



High-yielding currencies such as the rand and Brazil&#8217;s real , which have outpaced their EM peers this year, were the worst hit by the rout, losing about 2.7% and 1.2%, respectively.



The steep losses come after strong economic readings and hawkish central banks brightened the outlook for EM assets this year. MSCI&#8217;s currency index has now relinquished most of its gains this year, and is trading flat. Stocks have also trimmed most of their gains.



EM debt was also on the ropes, with JPMorgan EMBI spreads at their highest in nearly four months.



In South Africa, a court adjourned the corruption trial of former president Jacob Zuma to August 10. Zuma&#8217;s jailing had triggered some of the worst violence in the country in the post-apartheid era, and had hammered the rand.



Chinese stocks fell, while the yuan was largely unchanged after the central bank kept a benchmark lending rate unchanged, despite some expectations of more policy easing in the country.



In central Europe, the Czech crown was the sole gainer against the euro, after higher-than-expected producer price inflation raised expectations of more policy tightening by the central bank.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick Editing by Joe Bavier)

asian stock market

FX regains composure, stocks fall further on Delta woes

July 19 (Reuters) &#8211; Emerging market stocks and currencies tumbled on Monday as investors rushed to safe havens on rising COVID-19 cases around the globe, while fears of stricter regulations weighed on major Chinese technology stocks.



MSCI&#8217;s index of emerging market (EM) currencies dropped 0.4% and was headed for its worst day in a month, with Turkey&#8217;s lira and the South African rand leading losses across Europe, the Middle East and Africa (EMEA). Both currencies fell about 0.7%.



Losses in heavyweight Chinese technology stocks dragged MSCI&#8217;s EM stock index 1.3% lower. Most bourses in EMEA fell between 0.6% and 1.2%.



Alibaba and Tencent, two of the top three stocks on the MSCI index, fell about 3% and 2.5%, respectively.



A Shanghai court at the weekend posted a list of &#8220;typical unfair competition cases&#8221; involving several major Chinese tech companies, including Alibaba, Tencent, and search engine Baidu which dropped 3.8%.



But rising virus cases, particularly of the highly infectious Delta variant, cast a pall over most risk-driven assets, and encouraged flows into safe havens such as the dollar and the Japanese yen.



&#8220;Increasing nerves about the delta-variant COVID-19 are sapping recovery hopes across the Asia-Pacific&#8230; you can choose your poison on that front globally, with the U.S., Europe, and the UK also experiencing rises in cases,&#8221; Jeffrey Halley , Senior Market Analyst, Asia Pacific, at OANDA, wrote in a note.



South Africa&#8217;s rand fell 0.7% after wild swings over the past few sessions, as the weak risk appetite exacerbated concerns over civil violence in the country.



One-month dollar options on the rand, a common gauge of volatility, hovered just below three-month highs.



Turkey&#8217;s lira was set to snap a six-day winning streak. The currency has been among the top performing EM units over the past few weeks with a yield of 19% &#8211; the highest in the world &#8211; and the prospect of near-term stable monetary policy attracting investors.



Minutes of the central bank&#8217;s meeting last week will be scrutinised for further affirmation of steady policy.



Turkish markets will be closed for the rest of the week.



Russia&#8217;s rouble fell 0.4%, tracking a drop in oil prices after OPEC+ reached a deal to increase supply. Fears of waning demand, due to a rise in virus cases, have also rattled oil markets in recent weeks.



Central European currencies retreated against the euro and the dollar.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick; Editing by Kirsten Donovan)

Rand, lira lead EMEA currencies lower as virus cases rise

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND.jpeg" alt="" class="wp-image-409992" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Oil well pump jacks operated by Chevron Corp. in San Ardo, California, U.S., on Tuesday, April 27, 2021. David Paul Morris | Bloomberg | Getty Images</figcaption></figure>



Oil prices fell nearly 1% on Monday morning during Asia hours after&nbsp;<a href="https://www.cnbc.com/2021/07/18/opec-allies-agree-to-fully-end-oil-production-cuts-by-september-2022.html">OPEC and its allies agreed to end oil production cuts</a>.



<a href="https://www.cnbc.com/quotes/@LCO.1">Brent crude futures</a>&nbsp;fell 0.88% to $72.94 a barrel, while&nbsp;<a href="https://www.cnbc.com/quotes/@CL.1">U.S. crude futures</a>&nbsp;fell 0.97% to around $71.11 a barrel.



But having a deal is “better than no deal” for the Organization of the Petroleum Exporting Countries&nbsp;and its allies — known collectively as OPEC+, according to an oil analyst who said a continued stalemate could mean rising production and plunging prices.



“I think they decided that having a deal was better than no deal,” Andy Lipow, president of Lipow Oil Associates, told CNBC.



The group agreed to increase production by 400,000 barrels per day on a monthly basis from August, as it moves to phase out production cuts of about 5.8 million barrels per day by September 2022.&nbsp;It comes as oil prices hover close to their highest levels in more than two years.



<a href="https://www.cnbc.com/2021/07/05/oil-explainer-energy-prices-rise-after-opec-fails-to-reach-deal.html">Negotiations to increase production previously stalled</a>, after the United Arab Emirates rejected the group’s proposal for the rollback of the oil cuts. It left the industry as well as investors in limbo as <a href="https://www.cnbc.com/2021/07/06/oil-prices-could-top-100-former-us-energy-secretary-on-failed-opec-talks.html">experts warned that prices could either hit the roof or collapse</a> without an agreement.



“If they didn’t have a deal, they would be left to their own devices and we could really see a free for all on increasing production from all of them, at a time when the return of demand still remains in question, due to the delta variant,” Lipow told CNBC’s “<a href="https://www.cnbc.com/street-signs-asia/">Street Signs Asia</a>” on Monday.



He was referring to the highly transmissible Covid variant that’s spread to more than 100 countries, pushing cases to record highs in several countries.



“This agreement should give market participants comfort that the group is not headed for a messy breakup and will not be opening up the production floodgates anytime soon,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.



Last year, to cope with lower demand as the Covid crisis hurt economies and people could not travel much, OPEC and its allies agreed to curb output by almost 10 million barrels a day from May 2020 to April 2022.&nbsp;



“So the one thing that we do know is that OPEC+ did not want to see a return to prices last year in the $10 to $20 a barrel range,” Lipow said.



<a href="https://www.cnbc.com/2020/04/21/negative-oil-prices-can-go-even-lower-as-coronavirus-and-storage-limits-ravage-crude.html">Prices fell to historical lows</a>&nbsp;last year, as the impact of the pandemic wiped out oil demand. The&nbsp;<a href="https://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html">West Texas Intermediate crude fell below zero for the first time</a>, before recovering to over $10 a barrel at one point. Brent oil fell to a nearly two-decade low of nearly $20 per barrel.



<h2 class="wp-block-heading" id="h-time-to-buy">Time to buy</h2>



This could be a buying opportunity for investors, says Lipow.



The “silver lining” is that the pace that OPEC+ is restoring oil production is still slower than the increase in global demand for oil, he said. That will support prices ahead.



“Really, this is a buying opportunity for well over the next six months, as those inventories around the world continue to decline. Here in the United States, we’ve reduced our crude oil inventories by 75 million barrels since April 1, and that’s indicative of what’s happening around the rest of the world.”



Lipow said oil prices could go up to $78 a barrel for international benchmark Brent.



“I still think that the world has to wrestle with a return of demand and this delta variant that we’re seeing spreading around the world. And that, of course, is keeping a dampener on prices,” he said.



Croft, too, cautioned that uncertainty could still lie ahead, as OPEC might reverse the 400,000 barrels a day increase.



“As the Saudi oil minister stated, the group can pause, reverse or continue with the 400 kb/d monthly increase based on key contingencies such as Iran&#8230; and global COVID case counts,” she wrote in a note on Sunday.



The U.S. and Iran are re-negotiating a 2015 nuclear deal, which could mean a return of Iranian oil to the market.

106905973-1625223614118-gettyimages-1232575215-OIL_DEMAND

OPEC+ oil deal sends prices lower — and this could be a buying opportunity

NAIROBI, July 19 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday. 



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



 Asian shares slipped to a one-week low on Monday and perceived safe haven assets, including the yen and gold, edged higher amid fears of rising inflation and a surge in coronavirus cases, while oil prices fell on oversupply worries. 



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES </h2>



Oil prices fell more than $1 a barrel on Monday, after the OPEC+ group of producers overcame internal divisions and agreed to boost output, sparking some concerns about a crude surplus as COVID-19 infections continue to rise in many countries. 



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS </h2>



South Africa’s rand firmed on Friday as days of unrest began to subside and communities took stock of looting and violence in which at least 117 people were killed. 



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS </h2>



The Kenyan shilling KES= was stable on Friday, amid an increase in demand for dollars from energy importers as inflows slowed, traders said. 



<h2 class="wp-block-heading" id="h-ethiopia-conflict">ETHIOPIA CONFLICT </h2>



Forces in Ethiopia’s northern Tigray region have released around 1,000 government soldiers captured during recent fighting, the head of its ruling party said, as both sides prepared for a showdown over contested land in the west of the region. 



<h2 class="wp-block-heading" id="h-ivory-coast-health">IVORY COAST HEALTH </h2>



A World Bank programme to help medical clinics in Ivory Coast procure equipment from General Electric GE.N and Philips PHG.AS could spur the cocoa-producing country’s development into a regional medical hub, Prime Minister Patrick Achi said on Sunday. 



<h2 class="wp-block-heading" id="h-africa-vaccines">AFRICA VACCINES </h2>



Nearly 50 African countries are to receive 25 million COVID-19 vaccine doses donated by the United States, with the first shipments to Burkina Faso, Djibouti and Ethiopia in coming days, U.S. officials and the Gavi vaccine alliance said on Friday. 



(Compiled by Nairobi Newsroom)

African Markets – Factors to watch on July 19

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-820x615.jpg" alt="" class="wp-image-409855" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-107x80.jpg 107w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/7641739030_aa820e43be_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>JP Morgan Photo: Solvency Ii Wire <a href="http://www.solvencyiiwire.com/">www.solvencyiiwire.com</a></figcaption></figure>



LONDON, July 16 (Reuters) &#8211; The unrest that has ripped through South Africa in the past week will force its economy to contract by 3% in the third quarter and drag down full-year growth, Wall Street bank JPMorgan said on Friday.



Rioting broke out in several parts of the country, which has Africa&#8217;s most industrialised economy, following the jailing of former President Jacob Zuma last week for his failure to appear at a corruption inquiry. The week of looting has destroyed hundreds of businesses and killed more than 100 people.



The flare-up prompted JPMorgan to revise Q3 growth quarter-on-quarter projections sharply lower from a previous estimate of -0.5%.



&#8220;The wave of violence and looting has swamped Gauteng and Kwazulu Natal (KZN), two provinces that account for over half of South Africa’s GDP,&#8221; said Sonja Keller in a note to clients.



&#8220;Some knock-on effects in terms of supply-chain disruptions are also increasingly evident as parts of the ports arm of state logistics firm Transnet and the country’s largest crude oil refinery Sapref temporarily shut down operations in KZN, risking delays to fresh produce exports.&#8221;



The bank trimmed its full year growth predictions to 4.5% from previously 4.9%.



On Thursday, Deutsche Bank estimated the riots in South Africa could shave 0.8% off economic growth this year while ratings agency Moody&#8217;s said the unrest was likely to prove costly in terms of damage to property and would dampen subdued confidence and weigh on broader economic activity.



S&amp;P Global Ratings said on Friday the events did not bode well for the investment climate.



&#8220;There&#8217;s a cost, there&#8217;s been a lot of damage,&#8221; said Ravi Bhatia, director at S&amp;P Global Ratings. &#8220;You&#8217;ll have to rebuild. There is always a reluctance to invest unless you have security guaranteed.&#8221;



Looking further ahead, JPMorgan&#8217;s Keller said the social strain and broader discontent could well shape policy making, in particular bolster calls for a re-introduction of the COVID-grant during current mobility restrictions.



JPMorgan expected the central bank to keep interest rates steady for now when policy makers meet next on July 22, but with a hawkish shift in tone.



&#8220;A normalization cycle would be more likely to begin in September with a follow-up hike in November, rather than our base case of one hike in November,&#8221; Keller said. &#8220;We see the probability of hiking at this meeting at around 30%.&#8221; 



(Reporting by Karin Strohecker; Editing by Tom Arnold and Angus MacSwan)

7641739030_aa820e43be_b

South Africa riots will push economy into 3% contraction in Q3 -JPMorgan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b-820x547.jpg" alt="" class="wp-image-409847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/32608304695_0cbfb49814_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Khartoum, Sudan Photo: via Flickr</figcaption></figure>



PARIS, July 16 (Reuters) &#8211; The Paris Club of official creditors has agreed to cancel $14 billion owed by Sudan and restructure the rest of the more than $23 billion it owes, Paris Club chairman Emmanuel Moulin said on Friday.



Speaking after the deal was reached on Thursday, Moulin urged Sudan&#8217;s other private and public creditors to grant the country debt relief on the same terms.



Sudan became eligible for relief after the International Monetary Fund accepted it last month into the Highly Indebted Poor Countries (HIPC) initiative based on a commitment to macroeconomic reforms.



The Paris Club agreement cancels $14.1 billion outright and reschedules $9.4 billion with grace periods long enough that Sudan does not have to make payments before 2024, Moulin said.



&#8220;This significant effort demonstrates the international community&#8217;s support to Sudan&#8217;s democratic transition and will help Sudan to re-engage with the international financial community, pursue its reform policies and fight poverty,&#8221; Moulin said.



At $23.5 billion, Sudan&#8217;s Paris Club debt &#8211; more than 99% of which consists of arrears and late interest built up since the 1980s &#8211; makes up a large chunk of the more than $56 billion the country owes to foreign creditors overall.



&#8220;We will seek similar or better results with creditor countries outside the Paris Club. This is a successful start,&#8221; Finance Minister Gebreil Ibrahim said on Twitter.



Sudan owes another $20.3 billion to non-Paris Club countries, including Kuwait, Sudan&#8217;s largest creditor at $9.8 billion, Saudi Arabia and China. It owes commercial lenders at least $6.5 billion as well.



The Paris Club said in a statement that Kuwait, Saudi Arabia, Abu Dhabi Fund for Development and the Czech Republic, all non-members of the Club, had indicated they would provide Sudan debt relief on terms comparable to those agreed with the Paris Club.



Sudan&#8217;s main creditors in the Paris Club are Austria, France and the United States. 



(Reporting by Leigh Thomas; additional reporting by Mahmoud Mourad in Cairo Editing by Alison Williams, John Stonestreet and Nick Macfie)

32608304695_0cbfb49814_b

Paris Club creditors to cancel $14 bln owed by Sudan

July 16 (Reuters) &#8211; South Africa&#8217;s rand led gains across emerging market currencies on Friday, as it trimmed steep weekly losses on fears of civil unrest, while Turkey&#8217;s lira was among the top performers this week as low volatility favoured high-yielding currencies.



The rand rose 0.6%, but was set to lose more than 2% this week after a wave of violence tore across major financial hubs in the country. The currency was the worst performing emerging market (EM) unit this week.



MSCI&#8217;s currency index was set to snap a two-week losing streak, taking support from gains in the Chinese yuan. But a rise in Asian COVID-19 cases sullied broader sentiment, while fears of slowing growth kept risk appetite subdued.



Losses in Asian markets pushed MSCI&#8217;s index of emerging market stocks 0.5% lower. But the index was set to end the week about 1.8% higher, with a bulk of gains coming on assurances from the U.S. Federal Reserve Chair, Jerome Powell, that policy would stay accommodative.



Turkey&#8217;s lira rose about 0.4% on Friday, and was set to outpace its peers in Europe, the Middle East and Africa (EMEA) with a 1.3% gain.



The currency has been slowly rising since the central bank maintained interest rates this week and vowed to keep them there till inflation comes under control, although analysts argued more tightening was needed to rein in inflation.



Still, with the bank expected to maintain the status quo, volatility indicators on the lira hit a one-year low. And with benchmark rates at 19%, the lira is among the highest yielding currencies in the world.



But that yield comes with the risk of more government meddling in monetary policy, which has seen the lira plummet to record lows.



&#8220;The &#8216;tightness&#8217; of the current stance remains questionable, in our view, and we think that the overall dovish nature of (the central bank&#8217;s) guidance is unjustifiable given the predominant upside risks to the inflation outlook,&#8221; Credit Suisse analysts wrote in a recent note.



In central Europe, the Polish zloty lagged its peers this week, as the country&#8217;s central bank held interest rates this week, in contrast to hikes in Hungary and the Czech republic.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Ambar Warrick; Editing by Shailesh Kuber)

South African rand rises, Turkish lira leads weekly gains in EMEA

WASHINGTON, July 15 (Reuters) &#8211; The World Bank said that leaders of 23 African countries on Thursday called for a largest-ever $100 billion replenishment of the International Development Association (IDA), the global lender&#8217;s fund for the world&#8217;s poorest countries.



The leaders set the goal in a joint declaration after a summit meeting in Abidjan, Ivory Coast, the World Bank said in a statement.



World Bank member countries normally replenish IDA every three years, setting its previous financing package at $82 billion to cover the 2021-2023 fiscal years. But in April, the bank launched an early replenishment cycle after massive assistance paid out to help countries deal with the COVID-19 pandemic drew down IDA resources.



The World Bank aims to complete the 20th replenishment of IDA in December, covering the 2023-2025 fiscal years.



<a href="https://www.worldbank.org/en/news/statement/2021/07/15/abidjan-s-declaration-african-heads-of-state-calls-for-an-ambitious-replenishment-of-the-resources-of-the-international">The declaration</a> from the African leaders marks the first request for a $100 billion replenishment goal.



The leaders who met in Abidjan are from Angola, Benin, Burkina Faso, Cameroon, Ivory Coast, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Guinea Bissau, Kenya, Liberia, Madagascar, Mauritania, Mozambique, Niger, Nigeria, Uganda, Rwanda, Senegal, Sudan, Tanzania and Togo. 



(Reporting by David Lawder; Editing by Chris Reese and Aurora Ellis)

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For most emerging market central banks, the only way is up

Stocks extend losses into fourth day, rand leads FX lower

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FX regains composure, stocks fall further on Delta woes

Rand, lira lead EMEA currencies lower as virus cases rise

OPEC+ oil deal sends prices lower — and this could be a buying opportunity

African Markets – Factors to watch on July 19

South Africa riots will push economy into 3% contraction in Q3 -JPMorgan

Paris Club creditors to cancel $14 bln owed by Sudan

South African rand rises, Turkish lira leads weekly gains in EMEA

African countries call for $100 billion for World Bank development fund

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Economy

U.S. looks to leverage African diaspora in trade with Africa

African nations criticise push to fast-track deep-sea mining talks

Bandits steal truckloads of copper worth millions in southern Africa – sources

Key African rates to hold steady as vaccination lags restrain recovery

Russian central bank set to hike rates

Bounce back; South African rand up before rate decision

For most emerging market central banks, the only way is up

Stocks extend losses into fourth day, rand leads FX lower

Copper steadies after rising COVID infections knock prices

FX regains composure, stocks fall further on Delta woes

Rand, lira lead EMEA currencies lower as virus cases rise

OPEC+ oil deal sends prices lower — and this could be a buying opportunity

African Markets – Factors to watch on July 19

South Africa riots will push economy into 3% contraction in Q3 -JPMorgan

Paris Club creditors to cancel $14 bln owed by Sudan

South African rand rises, Turkish lira leads weekly gains in EMEA

African countries call for $100 billion for World Bank development fund

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