Markets and investing

Let’s go on a borrowing spree, shall we?

In other market news: Rand is off to a running start in 2017

Nigeria is turning to its citizens in the diaspora to help raise funds for the government. The Federal Government of Nigeria will issue its debut diaspora bonds by March after finalizing a $1 billion Eurobond. At the same time, Kenya’s government is seeking to borrow up to $1.05 billion to plug a budget deficit. Meanwhile, interest rates the country’s short term debt securities edged down for a fourth week consecutively.

Back in Nigeria, the Central Bank apparently has no plans to devalue the naira. The CBN is however looking at how to close the gap between the official exchange rate (around 315 to USD on Thursday) and the parallel market rate (around 495 to USD). The uptick in the price of crude, Naija’s main export, has helped boost forex reserves for the country. Down south in Zimbabwe the dollar scarcity is so dire that businesses are giving massive discounts for cash-paying customers. The country turned to the dollar after its own currency suffered runaway inflation eight years ago making it more or less worthless.

South Africa’s rand has started off on a good footing in 2017. The currency rallied 1.4% rally against the dollar on Thursday and is on course for its best start to a year since 2008.

Looking at the stock markets, Kenya’s is on a downward trajectory. Its benchmark index will likely dip below 3,000 points well past eight year lows. If you’re looking for stock picks for 2017 try these JSE counters or see what the Nigeria Stock Exchange could have in store for 2017.