Market Strategy - Regional FX And Fixed Income Strategy - 29 JULY 2013

We expect that the South African rand will build on its recent rebound, while the Ghanaian cedi is set for further losses. Most other African currencies have been stable in recent weeks, a trend we expect to continue over the near term.

  • We prefer Nigerian local debt over West African peers due to currency stability and continued elevated yields.

  • In East Africa, yields in Kenya are expected to rise due to rising inflation and waning demand for local debt instruments amid the launch of the eurobond.

  • ZAR To Break Through Resistance
    South Africa - Exchange Rate, ZAR/US$

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