VenturesNow

Egypt to increase IMF loan to over $5 billion— Report

Published

1 year ago

October 14, 2023

A report published on Friday by Bloomberg claims Egypt is in talks with the International Monetary Fund (IMF) on augmenting its rescue programme to more than $5 billion.

The report stated that no decision had been taken yet and that any statement on a potential increase from the $3 billion secured last year would only be made after Egypt completed its two postponed programme assessments.

Egypt’s economy has recently been in decline as the country is one of the five countries in the world most at risk of defaulting on its external debt, according to financial ratings firm, Moody’s. Egypt has relied extensively on IMF and Gulf country bailouts in recent years.

Data from Egypt’s statistics agency, CAPMAS on Tuesday showed that its annual urban consumer price inflation rose to a historic high of 38.0% in September. The rise, which exceeds analysts’ forecast, is a shift from 37.4% in August in its fourth consecutive month of record highs.

Apart from its discussions with multilateral bodies, Egypt’s government also recently reached an agreement with private producers and merchants to reduce the price of staple goods by 15–25% and exempt them from customs charges for six months in an effort to combat food inflation.

The IMF and World Bank are currently having their annual meetings in Marrakech, Morocco, just 45 miles (72 km) from the site of the 6.8-magnitude recent earthquake, and a few decisions regarding the fiscal state and macroeconomy of some African countries like Nigeria, Zambia, Morocco, Tunisia, and Zimbabwe have already emerged from the summit.

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.”