2025-09-15 07:08

Sept 15 (Reuters) - In the lush highlands of eastern Democratic Republic of Congo, coffee crops are rotting and withering as an escalation in the decades-long conflict in the region has kept farmers from tending to their land this year. Fighting between the government and Rwanda-backed M23 rebels escalated at the start of the year as rebels seized major cities in North and South Kivu provinces, prime coffee-growing areas known for their high-quality Arabica beans. Sign up here. The latest hostilities have killed thousands and displaced hundreds of thousands more, including farmers. They have also blocked export routes, threatening to curtail what had been a remarkable recovery for the nation's coffee industry following years of decline. Coffee bean production in Congo topped 100,000 metric tons a year in the late 1980s, according to U.N. data, but fell sharply in the 1990s as DRC forces and other armed groups fought in devastating wars rooted in Rwanda's 1994 genocide. Output climbed again in the past decade, reaching just over 62,000 tons in 2023, the U.N. data shows. Cooperatives like SOPACDI in South Kivu province were getting international recognition for their quality beans, and improvements had been made in production methods and in deepening global market connections. Now those gains are under threat. At the state-run coffee factory in Bukavu, the South Kivu capital, rows of drying beds laid empty during a Reuters visit earlier this month. François Kambale Nzanzu, the director of the state agriculture office that oversees exports, said that while coffee trees flowered abundantly this year, fighting and banking disruptions have hit exports. "We had a lot of coffee, but there weren't many exporters this year," Nzanzu said. In Muganzo, also in South Kivu, farmer Mudekereza Kashugushu Celestin surveyed the sorry state of his plantation, where fallen trees and shrivelled beans littered the ground. "There's nothing left of the coffee I had. Even those that remain are already rotten and dry," he said. The damage has left him struggling to support his family and pay his children's school fees. "I used to harvest $300 worth of coffee each year, but this year I only got $50," he said. https://www.reuters.com/world/africa/congo-coffee-farmers-fear-war-will-undo-recent-gains-2025-09-15/

2025-09-15 07:07

NAIROBI, Sept 15 (Reuters) - Borrowing costs for governments and businesses in South Africa, Nigeria and Kenya have risen in the last five years due to policy weaknesses, unfavourable market conditions and inflation, according to a study by Moody's Ratings published on Monday. Although economies in the region face ever-rising funding needs to keep development and growth on track, they have to contend with high interest rates compared with their advanced counterparts, which is compounded by limited sources of capital. Sign up here. "Borrowing costs are high across the board," Moody's Senior Vice President Lucie Villa said in the report based on a study of credit conditions in the three markets. "Debt costs for banks, non-financial companies and sovereigns have increased in all three markets alongside higher policy rates during the past five years." While borrowing from development partners, which typically lend at low interest rates, has helped to lower foreign currency debt costs, it has not fully offset high local and foreign capital market interest rates, the report found. The costs of borrowing on international markets for the three countries have come down, with interest spreads over U.S. Treasuries easing for lower-rated Kenya and Nigeria since 2022, but they still stand at around 500 basis points, it said. South Africa enjoys lower interest rates due to being an emerging economy with deeper domestic capital markets and an effective monetary policy structure, but its costs are considered high relative to many of its emerging market peers due to fiscal constraints. "Without improvements, South Africa risks continuing a negative spiral in which high interest rates aimed at attracting inflows amid subdued growth limit domestic investment and further hinder economic prospects," the report said. Moody's blamed overborrowing by the Kenyan government and shallow local markets for limiting access to credit for businesses, while high inflation and low savings curb availability of low interest credit for Nigerian companies. Redressing the imbalances that keep financing costs high, including the creation of effective policy structures, will take time, Moody's said. https://www.reuters.com/world/africa/sub-saharan-africas-major-economies-hit-by-high-finance-costs-moodys-says-2025-09-15/

2025-09-15 06:59

MUMBAI, Sept 15 (Reuters) - The Indian rupee treaded water on Monday and the dollar-rupee forward premiums lingered near a four-month high, buoyed by expectations that the U.S. Federal Reserve will resume cutting interest rates this week after a 9-month hiatus. The rupee was at 88.25 against the U.S. dollar as of 11:05 a.m. IST, little changed from its close of 88.2750 in the previous session. Sign up here. Asian currency trends were mixed with the Korean won up about 0.4% while the Indonesian rupiah and Thai baht slipped. The dollar was steady against major peers as investors braced for a week dominated by central bank policy decisions from Washington to Tokyo. While the Bank of Japan and Bank of England are expected to keep rates unchanged in their policy decisions due on Friday and Thursday, respectively, the Fed is widely expected to cut rates by 25 basis points on Wednesday. "A 25bp cut is unlikely to be unanimous, with several dissents possible. At least one official is expected to vote for 50 bps, and it is possible at least one other may vote for no change," analysts at ANZ said in a note. The focus will also be on the Fed's updated economic projections. ANZ expects policymakers to lower its future interest rate projections by 50 bps. Traders reckon that weakness in the dollar, on the back of dovish commentary from the Fed, could support the rupee but worries over the impact of steep U.S. tariffs on export and portfolio flows are likely to remain a dampener against sharp gains. Meanwhile, dollar-rupee forward premiums were steady on Monday with the 1-year implied yield at 2.33%, hovering near its highest level since May and up 14 basis points on the month so far. https://www.reuters.com/world/india/fed-cut-hopes-soothe-rupee-buoy-forward-premiums-four-month-high-2025-09-15/

2025-09-15 06:55

Prime minister to address baht strength after meeting industries Cabinet line-up to be submitted for royal approval this week Industry federation says baht should trade at 34-35 per dollar BANGKOK, Sept 15 (Reuters) - Thai Prime Minister Anutin Charnvirakul said on Monday that the strength of the baht currency needs to be urgently addressed and that it would be discussed later in the day. Speaking after a meeting with the Federation of Thai Industries, Anutin said he would also seek royal approval for his new cabinet line-up later this week. Sign up here. Anutin , opens new tab, who won , opens new tab a parliamentary vote this month with an overwhelming majority, has only four months in power before he calls an election, as per an agreement between him and the largest party in parliament that backed his premiership bid. He faces a an uphill task of turning around an economy grappling with U.S. tariffs , opens new tab, high household debt , opens new tab and weak consumption. Anutin's incoming cabinet includes senior finance ministry official Ekniti Nitithanprapas as Finance Minister and economy czar. Other members are Auttapol Rerkpiboon, the former head of the state-owned energy giant PTT Group (PTT.BK) , opens new tab who will oversee energy, and Suphajee Suthumpun, former chief executive of hotel operator Dusit Thani (DUSIT.BK) , opens new tab, who will serve as Commerce Minister. Speaking about his meeting with the industry federation, the prime minister said, "We had a long discussion and listened to their needs and urgent matters." Incoming Finance Minister Ekniti will discuss the strength of the baht further with the federation later on Monday, Anutin added. The baht traded at 31.74 per U.S. dollar at 0623 GMT, after hitting a more than four-year high of 31.57 last week. It has appreciated by 7.9% so far this year, making it the second-best performing currency in Asia after Taiwan's dollar . Businesses including rice traders , opens new tab have expressed concerns about the baht's strength and have urged policymakers to take urgent action to address the issue. The industry federation said on Monday that a rate of 34-35 baht per dollar would be more appropriate for the Thai economy. Southeast Asia's second-largest economy , opens new tab is projected to expand by 1.8% to 2.3% this year, according to the state planning agency, and is expected to slow down sharply in the second of 2025 due to the impact of U.S. tariffs. Thailand's growth of 2.5% last year lagged its peers. Anutin's government is expected to be supported by further cuts in interest rates later this year, under a new governor , opens new tab. The central bank last month cut , opens new tab its key rate to a near three-year low of 1.50%. The next rate meeting is on October 8. The central bank is expected to lower the key rate by a further 50 basis points, bringing it to a terminal rate of 1% by the end of 2026, BMI said in a report. https://www.reuters.com/world/asia-pacific/thailands-pm-tackle-baht-strength-currency-soars-2025-09-15/

2025-09-15 06:51

NEW DELHI, Sept 15 (Reuters) - Gold demand in India this festive season is expected to be weaker than last year, as record-high prices are likely to curb jewellery purchases, outweighing modest gains in investment demand. Weaker demand in the world's second-largest gold consumer could limit a rally in global prices , which hit a record high last week. But sluggish demand for gold imports could limit India's trade deficit and support the rupee. Sign up here. Local gold prices , which scaled a record peak of 109,840 rupees per 10 grams last week, have risen 42% year-to-date, after gaining 21% in 2024. "Consumers have a fixed budget, and it's not keeping up with rising prices. We're expecting demand to fall by about 10%-15% in volume," Amit Modak, chief executive of PN Gadgil and Sons, said on the sidelines of the India Gold Conference in New Delhi. Indians will celebrate Dussehra and Diwali in October, festivals during which buying gold is considered auspicious. The December quarter typically accounts for about a third of India's gold sales, as it coincides with the start of the wedding season and festivals. Gold demand in the December quarter last year stood at 265.8 metric tons, boosted by a price correction just ahead of the festive season after New Delhi slashed import duties on the metal to 6% from 15% in a bid to tackle smuggling. Consumer sentiment has improved in the last few weeks despite rising prices, and in value terms, demand will still be much higher even if volumes decline, said Sachin Jain, CEO of the World Gold Council's Indian operations. Besides, investment demand, especially through exchange-traded funds (ETFs), has been rising as gold has been delivering better returns than competing asset classes, Jain added. Retail gold buying could get a boost from the government's move to cut goods and services tax (GST) on consumer items, as this will leave people with more disposable income, Harshad Ajmera of wholesaler JJ Gold House in Kolkata. Earlier this month, India announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand. https://www.reuters.com/world/india/soaring-bullion-prices-threaten-dull-indias-festive-gold-sparkle-2025-09-15/

2025-09-15 06:42

NEW DELHI, Sept 15 (Reuters) - India's wholesale prices (INWPI=ECI) , opens new tab in August rose 0.52% year-on-year, reversing a 0.58% decline in the previous month, government data showed on Monday. Economists polled by Reuters had projected the wholesale price index to rise 0.3% year-on-year in August. Sign up here. KEY NUMBERS * Wholesale food prices in August rose 0.21%, compared with a 2.15% year-on-year decline in the prior month. * Vegetable prices in August declined 14.18%, compared with a slump of 28.96% year-on-year in July. * Prices of manufactured products rose 2.55% year-on-year, as against an increase of 2.05% recorded in July. * Fuel and power prices declined 3.17% year-on-year, compared with a 2.43% drop in the month-ago period. https://www.reuters.com/world/india/indias-august-wholesale-prices-rise-052-yy-2025-09-15/