9 August 2024 Morning Biz News: Namibia Urged on Borrowing Strategies, South Africa Implements VAT on Imports, Dollar Gains on Jobless Data, Yuan Strengthens Amid Market Volatility

In recent financial developments, the African Development Bank (AfDB) has advised Namibia to implement conservative borrowing strategies and harness the potential of the Namibian Stock Exchange (NSX) and the Government Institutions Pension Fund (GIPF) to bolster developmental capital. This recommendation aims to tackle the country’s increasing public debt and enhance financial stability, according to The Brief.

In South Africa, a new policy is set to impact the clothing industry significantly. Starting soon, the country will impose VAT on low-value parcel imports to shield its domestic clothing sector from intense international e-commerce competition. This move addresses concerns over importers evading customs duties and follows similar actions by other regions, including the European Union, reports Reuters.

Meanwhile, the U.S. dollar is holding close to a one-week high, buoyed by a notable drop in jobless claims which has alleviated fears of an economic downturn. Reuters highlights that the dollar also strengthened against the yen for the fourth consecutive day, driven by rising Treasury yields following stronger-than-expected employment data. This development has led to a reduction in bets on Federal Reserve interest rate cuts this year.

In the Asian markets, Chinese exporters are facing challenges due to a stronger yuan. The offshore yuan, traded in Hong Kong, briefly fell below 7.1 against the U.S. dollar before easing to around 7.18, as reported by CNBC Africa. This currency movement occurred amid a global stock market sell-off as investors reassessed the U.S. economic outlook and potential interest rate adjustments.

Latest Financial Indicators:

• Namibian Dollar: 18.36 to the US$, 20.04 to the Euro, 23.41 to the Pound
• Gold: $2,425.90 per fine ounce
• Brent Crude: $78.33 per barrel
• Bitcoin: $1,123,985.82