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Ghana’s economic recovery threatened as IMF team’s staff-level agreement delays

Published

2 years ago

December 7, 2022

Ghana’s Finance ministry has revealed that the country’s economic recovery efforts could set for delay and complications.

An official the position known on Wednesday, adding that if a visiting team from the International Monetary Fund (IMF) leaves without a staff-level agreement next week.

The country’s director of Treasury and debt management, Samuel Arkhurst told journalists that the IMF had “nothing to do” with Ghana’s decision to undergo a domestic debt restructuring.

Arkhurst revealed that the consequences for those who do not voluntarily participate in the domestic bond exchange were still being negotiated, but there were no plans to go to parliament to force domestic bondholders to participate.

“If the holdouts are large, we will be in trouble,” Arkhurst told reporters.

“The government reserves the right to ensure that non-tendered eligible bonds do not benefit from their non-participation to the Domestic Debt Exchange, including through additional regulatory measures or a more coercive approach,” said a slide presented at the briefing.

The country is currently battling debt, 20-year-high inflation, a weak currency, and rising inequality.

The country’s currency, Cedi was the world’s worst-performing in 2022 as investors continued to squeeze foreign capital into the West African country.

As part of its many initiatives to out of its current economic challenge, Ghana recently ordered all large-scale mining companies to sell 20% of their entire stock and asked the companies to pay the Bank of Ghana with refined gold at their refineries from Jan. 1, 2023.

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.

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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.”