Traders are betting on smaller average depreciation for six major African currencies compared with March, as the wall of global monetary and fiscal stimulus provides a backstop for riskier assets.
But the outlook is uneven: the spread between 12-month forwards and one-month contracts suggests sizable depreciation in Nigeria, Zambia and Ghana. Currencies in Kenya, Egypt and South African are seen as more stable over the next year.
Uneven Outlook
Forwards signal bright prospects for some African currencies, pressure on others
Graphic and news source: Bloomberg
