Compilation of Frontier Market related articles from across the web between 17th August 2020 and 23rd August 2020. Last week’s edition can be found here.
Articles of the Week:
Aberdeen Frontier Markets Investment Company (ticker: AFMC) has officially stopped trading on UK AIM after shareholders confirmed that shares should cease trading on the exchange and the Company should liquidate. Investors are now only able to choose from the three remaining global Frontier Markets investment trusts – Blackrock Frontiers (BRFI), Jupiter Emerging & Frontier Income Trust (JEFI) and Mobius Investment Trust (MMIT) – if they wish to have exposure to these markets.
Peru’s economy contracted by 30.2% in the second quarter of 2020, ranking it as one of the worst performing countries in the world. The ongoing coronavirus pandemic has placed significant strain on the economy, with the heaviest impact being felt in the hospitality and construction industries. Rising commodity prices may provide some relief in the short term, but it is unlikely that it will change the World Bank’s forecast of a 12% fall in 2020.
High inflation, a weakening currency and capital controls have created an environment for traders in Argentina to shift their attentions towards cryptocurrencies, in particular Bitcoin which has strengthen by 169% in the last few years against the Peso.
Vietnam’s management of the coronavirus pandemic, combined with the relative “mismanagement” of the pandemic by its neighbours has put it in a prime position for foreign investors. While the effects won’t be immediate, we may see a sizable shift of operations in other Asian countries to Vietnam.
Turkey’s credit-fueled growth model has led to unsustainable credit growth, high inflation and external imbalances. The coronavirus pandemic has also applied further pressure on the country’s macroeconomic position as well as the Turkish Lira (TRY). Tellimer Research takes an in-depth look into Turkey’s currency crisis via several interesting graphs.
Statistics of the Week:
- Latvia’s Q2 Unemployment Rate increased from 7.4% to 8.6%.
- Jamaica holds Interest Rates at 0.5%.
- Namibia cut Interest Rates from 4% to 3.75%.
- Mongolia recorded a Balance of Trade surplus of $479m in July.