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Egypt continues economic quest as it holds ‘productive discussions’ with IMF

Published

2 years ago

July 10, 2022

Following recent loan moves by Egypt for international loans by Egypt The International Monetary Fund (IMF), said it has had productive discussions with the North African country on another financial input.

The IMF made the revelation on Friday during a staff visit to Egypt on economic policies and reforms to be supported by an extended fund facility.

The IMF in a statement said that “in the period ahead, we are continuing our close engagement with the authorities towards reaching staff-level agreement.”

Recall that Egypt last month announced it could request as high as $500 million loan from the World Bank to support the government’s strong commitment to ensuring that the needs of citizens continue to be met even amid a very challenging global context caused by concomitant crises such as COVID-19 and the war in Ukraine.”

The request makes it the fourth time Egypt had run to the IMF in recent time. It burrowed $12 billion under an Extended Fund Facility in November 2016, $2.8 billion under a Rapid Financing Instrument in May 2020, and $5.2 billion under a Stand-by Arrangement in June 2020.

Egypt economy has been plunged into further instability after the Covid-19 pandemic following the Russia and Ukraine which has specifically affected food supply in Egypt.

Russia is the world’s largest wheat exporter and Ukraine is among the top five. Global grain markets are facing turmoil following war between the two European countries with the two countries accounting for about 30 percent of the world’s wheat supply.

Report from the world Bank last month suggest Egypt might be in the right direction as the bank raised its forecast for the growth of the Egyptian economy during 2022 to 6.1 percent, compared to 5.9 percent in its previous forecast during the spring meetings in April.

Beyond textbooks and reports, it is hoped that the North Africa country which has enjoyed diplomatic goodwill across board lately will translate the growth potential into actual human -felt development.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day 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

2 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.”