VenturesNow

IMF sees progress on the Egypt credit programme despite Gaza’s pressure

Published

10 months ago

February 24, 2024

The International Monetary Fund (IMF) has reported that talks to expand Egypt’s loan programme are going well.

The IMF stated that Egypt needed a “very comprehensive support package” to deal with its economic problems, which include pressure from the Gaza conflict.

The principal programme revisions under the combined first and second reviews of Egypt’s current $3 billion loan were agreed upon by IMF staff and Egyptian authorities, according to IMF spokesperson Julie Kozack at a routine news conference.

She also stated that “authorities have expressed a strong commitment” to these reforms and declined to discuss details of the Egypt package as the negotiations are continuing.

Kozack while responding to questions on the impact on the talks of challenges posed by the expected entry of Gaza refugees into Egypt, said, “There is a need to have a very comprehensive support package for Egypt, and we’re working very closely with both the Egyptian authorities and their partners to ensure that Egypt does not have any residual financing needs and also to ensure that the programme is able to ensure macroeconomic and financial stability in Egypt.”

The IMF later clarified in a statement that the comprehensive policy package would “support the economic reform programme” in Egypt.

Due to the effects of the Israel-Hamas conflict, the IMF revised down its GDP growth estimate for the Middle East and North Africa and opened a new tab for 2024, which is 2.9%, down 0.5 percentage points from October. Egypt’s projected 3.0% growth rate in 2024 was downgraded by 0.6 percentage points.

According to Kozack, the IMF is still keeping an eye on the financial effects of the attacks on the Red Sea and Suez Canal, which are causing trade flows to reroute around the Cape of Good Hope in South Africa and increase the duration and expense of Europe-Asia travel.

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.”