EM currency turmoil spreads to Africa

The recent turbulence in EM currency markets has spread to some of Africa’s major economies, with the Ghanaian cedi and Nigerian naira slumping to all-time lows against the US$ this month. The South African rand has also been hit hard. Looking ahead, a combination of domestic concerns and moves towards less accommodative global monetary conditions suggests that currencies are likely to come under further pressure over the coming months.