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US Treasury Secretary, Yellen to meet IMF, World Bank over Ghana, Zambia debt crises

Published

2 years ago

April 11, 2023

The United States Treasury Secretary, Janet Yellen has promised to push for a quick resolution of the debt crisis in Zambia and Ghana.

Yellen will be meeting officials of the World Bank and International Monetary Fund (IMF), and will lobby for concrete steps to speed up the overall debt relief process and make it more predictable, Treasury Undersecretary Jay Shambaugh said.

The Treasury said in a statement that “during the week, Secretary Yellen will … maintain urgency for the speedy resolution of Common Framework cases like Zambia and Ghana to remove debt overhangs and foster growth in developing countries.”

“At a broad level, we’re really just pushing to improve the speed and predictability of this framework,” Shambaugh said at an event hosted by the Brookings Institution think tank. “This is going to require constructive and timely participation of all creditors in international debt restructuring discussions.”

The two countries who have both defaulted on their loan repayments are currently facing financial struggles and are fighting for restructuring of their sovereign debts, and moves to conclude a debt treatment, Treasury said on Monday.

Some 60% of low-income countries are in or near debt distress, but the Group of 20 (G20) common framework set up to help low-income countries has failed to deliver quick debt relief.

China on Monday urged the United States to take seriously its obligations and make more effort to resolve the debt problems in African countries.

The Chinese maintained that “data from the World Bank showed that multilateral financial institutions and commercial creditors hold nearly three-quarters of Africa’s total external debt, creating the biggest debt burden for African countries. which constitutes the biggest source of debt pressure on developing countries”.

Although Yellen has no scheduled formal meetings with Chinese counterparts, a US source stated that communication between China and the Biden administration would continue “where we are able to.”

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Moroccan annual inflation rises to 0.8% in November

Published

2 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.

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

Published

3 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.”