Rwanda: Dollars obligations destabilized after the M23 offensive in DRC
Rwanda dollar obligations fell on M23 rebels on M23 rebels on Monday, supported by Kigali, in the largest city in the eastern Democratic Republic of the Congo, marking a brutal climbing of a long -standing conflict, LSI-Africa report.
A coalition led the M23 Tutsia militia to enter Goma, located on the border with Rwanda, causing traffic exchanges between Congolese and Rwandan forces. In response, the Rwandan obligation matched 2031, denominated in dollars, fell by approximately 1.33 cent, stood at 83.81 cents on the dollar, its lowest level since December 23, according to data from Tradeweb.
Faced with this situation, the European Union’s foreign ministers urged Rwanda to stop supporting the M23 and withdraw its troops. For their part, the United States, France and the United Kingdom denounced the Rwandan involvement at a meeting of the UN Security Council on Sunday.
“” The drop in the Rwandan Euro-conductor has resulted in the potential risk of sanctions against the country, although it is still premature to assess the consequences“Said Charlie Bird, trader at Verto. However, the speed of the advance of the M23 suggests that “Rwanda believes that the risk of economic reprisals remains low”he added.
This drop is also part of a general climate of prudence in emerging and frontal markets, investors being concerned about threats from American customs tariffs and uncertainty surrounding the next decision of the Federal Reserve on interest rates.