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Kenya’s central bank says debt manageable despite rising exports

Published

5 months ago

August 4, 2024

According to information released by the Central Bank of Kenya, the nation’s debt is still manageable over the medium to long-term with the help of consistent policy measures and anticipated rapid export expansion.

The bank presented a quarterly economic report for the period ending in March, outlining the position. According to the report, the country’s debt burden indicators have improved, bolstered by a more robust fiscal effort. The bank claims that the external and overall ratings for the risk of debt distress are still high.

It noted that the country’s Debt Sustainability Analysis shows that Kenya is susceptible to export, exchange rate and primary balance shocks.

“In view of this, efforts aimed at boosting exports and revenues would strengthen external debt sustainability,” the Central Bank said, adding that the country’s exports to Africa have been on the rise, with the value of goods exported rising in the first quarter of 2024 to hit a new high of $1.81 million.

At the end of March, Kenya’s public and publicly guaranteed debt was Ksh10.3 trillion ($79.3 billion), or 67% of the country’s GDP.

The remainder of the debt is made up primarily of external debt denominated in dollars and euros, with domestic debt accounting for 50.3% of the overall debt. The apex bank claims that Kenya paid off its $2 billion Eurobond debt in full before the deadline of June 24.

The country successfully raised $1.5 billion in February through a Eurobond buyback offer, aiming to lower the likelihood of a repayment default.

The government does not owe money, but many argue that the tax rollback will cause Kenya to fall short of its IMF targets. The expected budget deficit for the fiscal year that started on July 1 is now 4.6% of GDP.

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Moroccan annual inflation rises to 0.8% in November

Published

4 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

5 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.”