Iran War May Trigger African Currency Devaluations, BMI Says

The conflict in the Middle East could spark another round of devaluations in Africa as rising energy costs limit authorities’ ability to defend their currencies, according to BMI, a unit of Fitch Solutions Inc.

Burundi’s franc and Malawi’s kwacha are most vulnerable as high energy import costs erode buffers, according to Orson Gard, a senior emerging- and frontier-market analyst at BMI.