Voters in the United States of America will be casting their votes for either the controversial former president Donald Trump or Vice President Kamala Harris in an election that may reshape U.S. investments in Africa on Tuesday while the Central Bank of Nigeria auctions N513.42 billion in Treasury bills.
“The election between former president Donald Trump and the contender, vice president Kamala Harris, has the potential of re-engineering the US-Africa relationship and its focus towards sub-Saharan Africa.”
Tuesday, November 5
U.S. to hold presidential elections that could influence FDIs
The United States of America is set to hold its 60th quadrennial presidential election on Tuesday which may make or mar trade policy and foreign direct investment directions into Africa and Nigeria in particular.
The election between former president Donald Trump and the contender, Vice President Kamala Harris, has the potential of re-engineering the US-Africa relationship and its focus towards sub-Saharan Africa.
Many political economists have said should Kamala Harris emerge victorious, it is likely that the substance and direction of U.S. policy and strategy toward the continent will continue as it has under President Joe Biden’s administration.
Key U.S. initiatives such as the African Growth and Opportunity Act, the Just Transition Partnerships, and more recently launched efforts like the African Democratic and Political Transitions initiative and the 21st Century Partnership for African Security will likely spur more substantive bilateral engagements between Washington and African capitals.
But a second Donald Trump administration, on the other hand, may not bode well for Africa, as he would likely introduce a much greater degree of policy uncertainty.
Read also: CBN plans N2.20trn treasury bills issuance in Q4 to control liquidity
Wednesday, November 6
CBN to auction N513.42 billion Treasury Bills
The Central Bank of Nigeria will be auctioning Treasury bills worth N513.42 billion on Wednesday.
It will be auctioning N20.75 billion for the 91-day tenor, N5.4 billion for the 182-day tenor, and for the 364-day N487.23 billion.
At the last auction, CBN rolled over a total of N374.67 billion across the 91-182- and 364-day tenors and sold only N374.67 billion.
The apex bank sold N352.17 billion worth of the one-year bills despite seeing subscriptions worth N460.40 billion.
This was after the CBN signalled that market rates were going to rise in tandem with the monetary policy rate, which was increased by 50 basis points to 27.25 percent.
Nigeria’s one-year Treasury bills yield increased to 26.02 percent at the primary auction Wednesday, as authorities continue on the path of aggressive monetary tightening.
The yield on the long end of the curve increased to 26.02 percent from 24.77 percent, the highest since August.
Similarly, shorter-dated instruments were met with rich investors’ appetite compared to the last auction.
The 91-day bill was oversubscribed by 28.2 percent of the N13.14 billion offered; however, only the amount offered was sold.
While the 182-day bill got N12.58 billion in subscriptions, the CBN sold only N9.35 billion.
Yields on the 182-day and 91-day bills remained the same as the last three auctions at 19.17 percent and 17.75 percent, respectively.
The CBN plans to issue N2.20 trillion in Treasury bills during the fourth quarter of 2024, matching the amount set to mature from September to November this year.
The amount to be offered in Q4 is 41.03 percent higher than N1.56 trillion issued in the preceding (third) quarter of 2024.
Thursday, November 7
Bank of England expected to cut interest rate
The monetary policymakers of the Bank of England will on Thursday decide on its benchmark interest rate, but investors are betting on a quarter percentage point rate cut.
At the last meeting held in September, BoE governor Andrew Bailey signalled that rates are “now gradually on the path down” as the borrowing costs were held steady at 5 percent.
Bailey said inflation had “come down a long way” but warned the bank would need to see more evidence that it will remain low before cutting rates further.
The decision to hold rates comes as prices continue to rise slightly faster than the bank’s target, with inflation remaining at 2.2 percent last month.
Experts are predicting the bank will cut rates further in November, as Thursday’s decision is the penultimate for this year.
Friday, November 8
FAO to release global food prices report for October
The Food and Agricultural Organisation (FAO) will be releasing its report on global food prices on Friday.
In September, global food prices rose to the highest in three months, led by sugar.
The UFAO price index, which tracks changes in the international prices of a set of globally traded food commodities, averaged 124.4 points in September, up 3 percent from its revised August level.
The FAO Sugar Price Index registered the largest increase in September, rising by 10.4 percent. This was driven by worsening crop prospects in Brazil and concerns that India’s decision to lift restrictions on sugarcane use for ethanol production may affect export availability from the country.
Cereal prices increased by three percent, led by higher wheat and maize export prices. International wheat prices increased due largely to concerns over excessively wet conditions in Canada and the European Union, though this was partly offset by competitively priced supplies from the Black Sea region.
World maize prices also climbed, influenced by low water levels on key transportation routes along the Madeira River in Brazil and the Mississippi River in the United States of America. By contrast, the FAO All Rice Price Index declined by 0.7 percent, partly reflecting generally quiet trading activities.
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