Compilation of Frontier Market related articles across the web from 3rd August 2020 to 9th August 2020. Last week’s edition can be found here.
Articles of the Week:
Violent clashes between demonstrators and security forces have erupted in Beirut as anger over the recent explosion in Beirut’s port reached boiling point this weekend. Many Lebanese considered the blase as “the latest and most dangerous manifestation of the corruption and negligence of the country’s leaders”.
Earlier this week, Argentina’s government announced that it had reached a deal with creditors to restructure $65 billion in sovereign debt, ultimately putting an end to months of deadlock and disagreement between opposing parties involved in the negotiations.
Romania’s central bank cut its benchmark interest rate from 1.75% to 1.50% and has made a commitment to continue providing market liquidity in order to provide relief during uncertain times in the current coronavirus pandemic.
Foreign investors continued their streak of being net sellers on the Nairobi Securities Exchange (NSE) and have since moved their assets to gold, in particular the Kenyan-listed NewGold ETF. The gold price finally broke the $2,000 an ounce barrier for the first time as investors hedge against COVID-19 and a weakening US dollar.
The Turkish lira ended the week at a record low on Friday despite the Central Bank’s attempt to protect the currency from further depreciation. Selcuk Gokoluk looks at the factors that have led to Turkey reaching this point.
Note that Turkey may also lose its title as an Emerging Market depending on the results of a consultation by Morgan Stanley Capital International (MSCI).
Statistics of the Week:
- Bulgaria holds interest rates at 0%.
- Iran’s YoY July inflation rate is recorded at 26.9% (vs 22.5% previous).
- Romania cuts interest rates from 1.75% to 1.5%.
- Morocco’s Q2 2020 unemployment rate rises from 10.5% to 12.3%