Latest news with #foreigncurrency
Reuters
2 hours ago
- Business
- Reuters
South Africa seeks $500 million in forex funding after budget impasse ends
JOHANNESBURG, July 25 (Reuters) - South Africa's National Treasury has issued a call for "innovative foreign currency financing solutions", aiming to raise at least $500 million for the 2025/26 fiscal year, following parliament's resolution of a protracted budget impasse that had threatened fiscal stability. The Treasury's announcement on Friday follows the passage of the Appropriation Bill on July 23 by parliament's lower house, ending months of political deadlock among coalition partners. The African National Congress - which rules in a coalition government of national unity with the Democratic Alliance and smaller parties - abandoned a proposed VAT increase and President Cyril Ramaphosa dismissed a minister accused of misconduct to secure Democratic Alliance support for departmental budgets. "This funding initiative aims to diversify the sovereign's hard currency funding toolkit beyond a traditional Eurobond, reduce execution risk and minimise the all-in cost of funds," the Treasury said, emphasizing its focus on liability management tailored to evolving market conditions. The Treasury is seeking proposals from a specific group of eligible counterparties: primary dealers in South African government securities, internationally active arranging banks, multilateral institutions, institutional investors, and other regulated financial entities with capacity to fund at scale. South Africa's move highlights the broader challenges faced by African countries in accessing affordable debt amid global economic uncertainty. Angola said this week it was pausing international borrowing plans, while the likes of Ghana, which has just come out of default, are looking to domestic investors for money. While Morgan Stanley data shows $154.2 billion in year-to-date sovereign issuance in emerging markets, much of that has been concentrated in the Middle East and Eastern Europe. The Treasury plans to evaluate proposals for bilateral term loans, private placements of floating rate notes, repurchase agreements, cross-currency swaps, and structured notes. ESG-linked instruments are particularly encouraged, reflecting alignment with the $61.9 billion in ESG-labeled emerging market bond issuance so far this year. Proposals will be assessed based on cost of funds, execution speed, resilience to currency volatility, and compatibility with South Africa's debt maturity profile and service peaks. Submissions are due by August 6, with a decision expected by August 29. The Treasury reserved the right to accept or reject proposals, describing the initiative as exploratory rather than a committed borrowing program. May's budget projections revised the consolidated deficit to 4.8% of GDP, up from March's forecast of 4.6%, with gross debt expected to stabilize at 77.4% of GDP.
Bloomberg
5 hours ago
- Business
- Bloomberg
South Africa Treasury Seeks to Supplement FX Borrowing Program
South Africa's National Treasury invited proposals on 'innovative and cost-efficient' ways to supplement the government's foreign-currency borrowing program in the current fiscal year. The initiative is aimed at diversifying funding sources beyond traditional eurobonds and reducing the cost of funding, the Treasury said in a statement on Friday.
Bloomberg
17-07-2025
- Business
- Bloomberg
Currency Inflows to Russia Dwindle as Trade Shifts to Rubles
The flow of foreign currency into Russia is drying up as trade increasingly shifts to ruble payments, reflecting the impact of Western efforts to limit Russian cross-border transactions. More than half of Russian exports are paid for in rubles, according to Bank of Russia data published late Wednesday. Payments in so-called friendly currencies — mainly the Chinese yuan — now account for just a third of receipts, down from nearly half at their peak a year earlier, while 'unfriendly' currencies make up only 15%.
Yahoo
17-07-2025
- Business
- Yahoo
A weak dollar is boosting firms with high overseas sales. Goldman Sachs shares 13 stocks to take advantage of the trend.
A Goldman Sachs report shows firms with global sales are benefitting from teh US dollar decline. Trump's tariffs have weakened the US dollar, boosting foreign currency earnings for firms. Internationally-exposed companies outperform domestic-focused ones 11% to 4%, respectively. As President Donald Trump ramps up his global trade war, one might think that American companies that do ost of their business in the US would be the top beneficiaries, but a recent Goldman Sachs report reveals it's just the opposite. Thanks to the falling value of the US dollar relative to other major currencies due to Trump's tariffs, companies that do most of their sales outside of the US are getting a major boost. That's because when they sell their products in exchange for a foreign currency, that money is now worth more in dollar terms. Year-to-date, the US dollar index is down almost 9%. The impact on stock prices has been noticeable, Goldman found. So far this year, its basket of stocks with high international sales is outperforming its group with high domestic sales 11% to 4%, respectively. The basket of 50 internationally-exposed companies has a median share of overseas sales of 70%. The list has stocks from all 11 market sectors, though it's most heavily weighted toward information technology, which has 17 stocks. Below, we've compiled the 13 firms on the list that have at least 80% of their sales coming from other countries. Their sectors, total sales, and share of overseas sales are also included. Las Vegas Sands Ticker: LVS Sector: Consumer discretionary Sales: $11.2 billion Non-US sales: 100% Booking Holdings Ticker: BKNG Sector: Consumer discretionary Sales: $23.7 billion Non-US sales: 90% Philip Morris Ticker: PM Sector: Consumer staples Sales: $37.8 billion Non-US sales: 100% Schlumberger Ticker: SLB Sector: Energy Sales: $36 billion Non-US sales: 85% Monolithic Power Systems Ticker: MPWR Sector: Information technology Sales: $2.2 billion Non-US sales: 97% Lam Research Ticker: LRCX Sector: Information technology Sales: $14.9 billion Non-US sales: 93% NXP Semiconductors Ticker: LRCX Sector: Information technology Sales: $14.9 billion Non-US sales: 93% KLA Ticker: KLAC Sector: Information technology Sales: $9.8 billion Non-US sales: 89% Teradyne Ticker: TER Sector: Information technology Sales: $2.8 billion Non-US sales: 87% Applied Materials Ticker: AMAT Sector: Information technology Sales: $27.1 billion Non-US sales: 86% Jabil Ticker: JBL Sector: Information technology Sales: $28.8 billion Non-US sales: 83% ON Semiconductor Ticker: ON Sector: Information technology Sales: $7 billion Non-US sales: 82% Newmont Ticker: NEM Sector: Materials Sales: $18.6 billion Non-US sales: 100% Read the original article on Business Insider
Bloomberg
15-07-2025
- Business
- Bloomberg
Chinese Investors' FX Pile Hits $1 Trillion Amid Low Local Rates
Chinese corporates and households boosted their foreign-currency deposits last month to the highest in three years, as they shunned the yuan on bets domestic interest rates will remain low. Total foreign-currency deposits onshore rose to $1.02 trillion in June, the highest since March 2022, according to data from the People's Bank of China released Monday. The net increase in the first half of the year was $165.5 billion, the biggest jump in data going back to 2005.
