South African country, Zimbabwe has continued its battle at fighting inflation as its central bank will start issuing gold coins as legal tender in late July.
Soaring inflation has weakened the local currency and the central hopes the gold coin, named ‘Mosi-oa-Tunya’, after Victoria Falls, can be converted into cash in the bid to strengthen its legal tender.
Last month, Zimbabwe raised its key rate to 200 percent after it was raised from raised to 80% in April from 60%. The decision made the country’s rate the highest in the world as it battles with soaring inflation persist. The rate was last
The central bank governor, John Mangudya in a statement on Monday, said that “the gold coins will be available for sale to the public in both local currency and US dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost production”.
The coins are expected to act as a ‘store of value and to reduce the demand for US dollars’ – something that has been blamed for the weakening value of the local currency.
In another move 2 months ago, the Zimbabwean government has ordered commercial banks in the country to stop lending money to government at all levels, businesses and individuals with immediate effect.
Will the introduction of the coins be the final answer to Zimbabwe currency crises the possibility is low as its current inflation situation is a product of many factors which cannot be turned over night but hopefully the coins will be the flip that leads a new path.
Nigeria: President Buhari makes U-turn on approval of Exxon unit acquisition by Seplat
Nigeria’s President Muhammadu Buhari has made a U-turn in his earlier position that grant approval of Exxon Mobil’s sale of local offshore shallow water assets to Seplat.
President Buhari had on Monday approved the $1.28 billion transaction, only for the Nigerian Upstream Petroleum Regulatory Commission to say it opposed the deal, although it did not give a reason.
Presidential spokesman Garba Shehu, told newsmen that “the president has decided to allow the regulator to do their work. He is withholding his earlier given approval, for now, to allow the process to be completed, that is basically it.”
In February, Seplat Energy Plc, unveiled plans to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation Delaware (USA Incorporated). That includes all of Exxon’s entire shallow water assets in the Niger Delta.
Seplat on its side said it is yet to received no official notification of President Buhari’s U-turn and is seeking clarification from authorities.
Nigeria climbs to fourth position on World Bank’s list of most indebted nations
Nigeria has moved into the fourth position of World Bank’s list of countries with the highest debts, according to the Bank’s financisl report released on Monday.
Going by the World Bank Fiscal Year 2022 audited financial statements for International Development Association (IDA), Nigeria now owes a debt stock of $13bn as at June 30, 2022.
The country also moved up one spot from the fifth position it was rated as of June 30, 2021, with an IDA debt stock of $11.7bn.
The global bank also revealed in its audited financial statements that Nigeria has accumulated about $1.3bn IDA debt within a fiscal year, adding that the debt is different from the outstanding loan of $486m from the World Bank’s International Bank for Reconstruction and Development.
What this means is that Nigeria now has the highest IDA debt in Africa, and is only bettered by the likes India with $19.7bn debt, Bangladesh, $18bn
and Pakistan, $15.8bn, all from the Asian bloc.
The Washington-based international Financial Institution also disclosed that Nigeria’s debt which may be considered sustainable for now, is fast growing into a state of vulnerability and could become costly.
“Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria,” it said.
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