Thursday, February 25, 2010

Market Intelligence - Currencies

During the week of 15 – 19 February, African currencies fluctuated within the range of ± 1.9% against the US dollar, with an exception of São Tomé and Príncipe’s Dobra which depreciated by 13.0%.

Currency Focus

São Tomé and Príncipe: The Dobra, whose value had been stable against the U.S. dollar until recently, fell by 13.0% in the week, hinting the country’s passing of a turbulent period in pegging the currency to the Euro, scheduled to start this year.

South Africa: The Rand had recorded a gain of 0.65% vis-à-vis the U.S. dollar over the week although it lost some ground in the wake of the U.S. Federal Reserve's raising of the discount rate, which is the interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank . This rate was increased from 0.5% to 0.75% in 18 February. Click here for this week's Market Intelligence Table.