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Ethiopia, IMF agree $3.4 billion funding deal

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The International Monetary Fund (IMF) announced on Monday that Ethiopia had successfully negotiated a $3.4 billion new credit programme.

The news came the same day Ethiopia’s central bank floated the birr, a significant move toward gaining IMF support and moving forward with a protracted debt restructure.

At the end of last year, the Horn of Africa country—which is dealing with severe inflation and ongoing shortages of foreign currency—became the third economy on the continent to default on its debt in as many years.

After the last fund-supported program signed in 2019 was abandoned due to war in the northern district of Tigray that ended with a peace settlement in November 2022, it has been in talks with the IMF since last year to arrange a new lending program.

As previously reported by Reuters, Ethiopia was attempting to negotiate a deal with the IMF for roughly $3.5 billion. According to the IMF, the deal will allow for an approximate $1 billion payout to occur right away.

Early in 2021, the second-most populous nation in Africa requested a debt restructure under the Group of 20’s Common Framework process; but, due to the two-year-long civil conflict in Tigray, progress was impeded.

Analysts believe that the economic reforms announced by the Addis Ababa government have something to do with the ongoing negotiations for a new IMF program, which includes the adoption of an interest rate-based monetary policy earlier this month.

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Moroccan annual inflation rises to 0.8% in November

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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

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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.”

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