24 July 2024 Morning Biz News: Financial Brief: Key Updates on Pension Schemes, Currency Movements, and Commodities

July 24, 2024 22

GIPF’s Pension-Backed Housing Loan Scheme Gathers Momentum

The Government Institutions Pension Fund (GIPF) is poised to enhance its financial offerings with an innovative pension-backed housing loan scheme. This initiative will be facilitated through GIPF’s subsidiary, Kuleni Financial Services, and housing loan fund manager, First Capital Treasury Solutions. The Memorandum of Agreement (MoA) for the scheme is currently under review by the Office of the Prime Minister, as reported by The Brief. This development marks a significant step forward in GIPF’s strategy to provide more comprehensive financial solutions to its members.

Rand Weakens Ahead of Key Economic Data

On Tuesday, South Africa’s Rand experienced a decline, trading at 18.40 against the US dollar, down 0.9% from its previous close. This weakening comes as investors brace for June’s inflation data and keep a close watch on the U.S. presidential race. Analysts from Rand Merchant Bank observed that market participants are exercising caution as they await these critical economic indicators, which could influence market sentiment.

Nigeria’s Central Bank Hikes Interest Rates Amid Inflation Surge

Nigeria’s central bank has raised its benchmark interest rate for the fourth time this year, increasing it to 26.75% from 26.25%. This move comes as inflation reaches a 28-year high and the naira faces mounting pressure. Central Bank Governor Olayemi Cardoso highlighted that while monetary policy has helped moderate aggregate demand, persistent increases in food and energy costs continue to drive up inflation, necessitating this latest rate hike.

Oil Prices Rebound on Declining U.S. Inventories

Oil prices saw a rebound on Wednesday following several days of decline, driven by falling U.S. crude inventories. Brent crude futures for September increased by 46 cents per barrel, while U.S. West Texas Intermediate crude for September rose to $77.38 per barrel. This rebound is tempered by ongoing expectations of a potential ceasefire deal in the Middle East, which could impact future oil supply dynamics.

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