VenturesNow

Senegal reaches agreement for $217 million loan with IMF

Published

3 years ago

May 21, 2022

West African country, Senegal has reached an agreement on economic and financial policies with the International Monetary Fund (IMF) under which the country will receive a $217 million loan.

The deal was sealed after a delegation of the IMF visited Senegal this week.

The agreement according to the IMF is subject to subject to the approval of the IMF’s executive board in June by the monetary organization.

The IMF said the Senegalese economy regained its pre-pandemic trend path in 2021, led by strong industrial production and the services sector. Real GDP growth is estimated at 6.1 percent, about one percentage point higher than previously anticipated.

“Average inflation was contained at 2.2 percent, though food prices have increased by 2.9 percent. Despite shortfalls in tax revenues, budget execution was broadly in line with target with an overall fiscal deficit of 6.3 percent of GDP.” The IMF remarked.

The loans targeted at helping authorities cushion the impact of soaring fuel and food prices, made worse by the war in Ukraine, and the economic slowdown of Senegal’s main trading partner Mali, which is facing sanctions for failing to restore democracy since a 2020 coup, the IMF said in a statement late on Thursday.

“The authorities have adopted a supplementary budget to incorporate additional spending for energy subsidies, public wages, cash transfers, and security,” the IMF said.

Policy measures have been agreed to avoid budgetary slippages and ensure fiscal deficit will still converge to 3% of GDP by 2024, it added.

The Senegalese economy was hit hard by border closures during the thick of the Covid-19 that affected tourism and delayed oil and gas extractions.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

3 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

4 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”