19 July 2024 Morning Biz News: Financial News Roundup: Meatco’s Turnaround Concerns, South African Repo Rate Unchanged, Naira Depreciates, and Dollar Steady Amid Fed Speculation

1. Meat Corporation Turnaround Strategy Under Scrutiny

Finance and Public Enterprises Minister Iipumbu Shiimi has voiced concerns over the Meat Corporation’s (Meatco) turnaround strategy, according to The Brief. Despite the government injecting N$1 billion in subsidies over the past three years, Shiimi is dissatisfied with the company’s lack of substantial progress. The effectiveness of the turnaround plan remains a key issue, with expectations for better performance and return on investment from the substantial financial support.

2. South African Reserve Bank Maintains Repo Rate

The South African Reserve Bank’s Monetary Policy Committee has decided to keep the repo rate unchanged at 8.25%. Governor Lesetja Kganyago reported that four committee members were in favor of maintaining the rate, while two members advocated for a 25-basis-point cut. The decision is influenced by a projected decrease in headline inflation, which is expected to stabilize around 4.5% due to lower fuel and food prices. The prime lending rate will remain at 11.75%, reflecting the central bank’s cautious stance on economic conditions.

3. Nigeria’s Central Bank Intervenes to Support Naira

In an effort to stabilize the naira, Nigeria’s central bank sold the dollar at 1,450 naira to retail exchange bureaux on Thursday. The naira had recently hit a new low of 1,640 per dollar, matching its rate on the parallel market. The currency also fell to a four-month low of 1,612.50 naira on the official market the previous day. This intervention aims to counteract the naira’s significant depreciation and support its value.

4. Dollar Steady Amid Speculation on Federal Reserve Rate Cuts

The U.S. dollar remained steady on Friday, potentially ending a two-week losing streak. This stability comes as U.S. labor and manufacturing data continue to influence speculation on the timing and extent of Federal Reserve rate cuts this year, as reported by Reuters. The yen fluctuated at 157.24 per dollar after reaching a six-week high of 155.375 on Thursday, amid speculation of significant interventions by Tokyo, potentially amounting to nearly 6 trillion yen, according to Bank of Japan data.

Latest Financial Indicators

• Namibian Dollar (NAD):
  • 1 USD = 18.26 NAD
  • 1 EUR = 19.90 NAD
  • 1 GBP = 23.63 NAD
• Commodities:
  • Gold: 1 ounce = $2,444.44
  • Brent Crude: 1 barrel = $85.08
• Cryptocurrency:
  • Bitcoin: 1 BTC = $1,167,461.22