Monetary Policy
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The scale of the intervention, which exceeds the entire 2023 total of $1 billion and represents nearly half of last year’s sales, reflects a more aggressive approach to exchange rate management.
Another key factor behind the CBE’s decision to hold rates is the government’s recent VAT reform package, announced on June 29. The amendments seek to broaden the tax base without raising the general 14% VAT rate.
The research firm projects a 150 basis point cut in the Monetary Policy Rate (MPR) to 26.0% by year-end. If implemented, the cut would mark the first rate reduction in nearly five years.
With its latest move, the central bank aims to lower Namibia’s interest rate margin from 3.7% to align with other Common Monetary Area (CMA) countries such as South Africa and Lesotho, where margins stand at 3.5%.
The directive is part of the government’s broader financial sector reform campaign aimed at deepening financial inclusion, expanding the tax base through improved payment traceability, and enabling long-term economic growth.
In a sweeping overhaul of Nigeria’s credit system, the Federal Government has announced that all citizens’ credit scores will soon be linked to their National Identification Numbers (NIN).
The move comes just days after the European Commission listed the country among high-risk jurisdictions for failing to adequately combat money laundering and terrorist financing.
The latest cut marks the sixth consecutive policy easing since August 2024 and comes as annual inflation slowed from 4.1% in April to 3.8% in May
The Washington-based lender explained that its latest stance is anchored on “good” stability in Zimbabwe’s official market and a growing likelihood of convergence between official and parallel market rates.
Born out of frustration with the big three rating agencies, AfCRA aims to offer credit assessments that better reflect the continent’s economic realities.
Fitch Ratings has downgraded the African Export-Import Bank (Afreximbank) by one notch to BBB-, placing it at the bottom of investment grade and just above junk status.
Consumer prices dropped to 18.4% in May, driven by a sharp decline in non-food inflation. Although Ghana is now on a five-month disinflation streak, inflation remains well above the central bank’s target, signalling the need for continued caution.
Ethiopia’s reform program is showing signs of success, with improved inflation, surging export earnings, and an 83% jump in tax revenue unlocking $260 million in fresh funding from the IMF
The CBN’s recapitalisation benchmark introduced in 2024 aimed at reforming Nigeria’s informal sector runs on a deadline today, only 5% of BDC operators has hit the bar
Nigeria’s credit rating rises to B3, reflecting stronger economic management and investor confidence, though risks persist.
In addition to simplifying forex pricing structures for bank customers, the new rules offer greater flexibility for international travellers and businesses through higher cash limits and relaxed import payment rules.
A proposed 5% U.S. tax on remittances sent abroad spell trouble for African economies, which rely heavily on money sent home by their diaspora.
A Kenyan lawmaker, Caroli Omondi, has suggested a new law called the Central Bank of Kenya (Amendment) Bill 2025. This law would make it against the rules for shops and businesses with real locations to refuse cash for payments under $775. If they don’t follow this rule, they could be fined or sued.
The Central Bank of Nigeria has stated in its latest report that more than 69% of Nigerians are against a further increase in monetary interest rates (MPR).
The southern African country saw a 10.7% yearly decline in counterfeit notes in 2024, attributed to improved security features, including holographic stripes, microtext, tactile elements, and transparent windows.