As the Chad loan is in jeopardy, IMF is funding North Africa.
Ghana: Crackdown on black market may not halt cedi’s fall
The IMF urged the Paris Club of official creditors not to renege on their obligations to the nation because of rising oil costs. A $570 million three-year loan program for Chad was approved by the Fund last year, but this might be in jeopardy if the funds are used to pay off unsustainable debt in the absence of a resolution with creditors.
While increasing oil prices will help Chad in some ways, the country’s ability to recover hinges on the IMF’s ability to persuade the Paris Club to keep its promise to reduce debt. This year, the CFA Franc in Central Africa has decreased by 19% against the US dollar.
Naira faces more losses at record low.
Following the conclusion of a new pay agreement, Transnet claimed that recovery preparations are in place and that the majority of its employees had returned to work. Given the persistent risk-off attitude in the markets and the lack of favorable economic events affecting the currency, we anticipate the Rand to trade at similar levels this week.
IMF agreement won’t prevent the Egyptian pound from declining further
The pound was fluctuating near its record low, fetching 19.68 for a dollar, a tiny decrease from last week’s closing price of 19.66 and just shy of the record 19.69 set earlier this month.
Kenya this week requested China to extend the payment period for $5 billion in loans the African nation obtained to build a railway project. The request came as the new government complained that loan servicing costs were strangling the economy. Given that FX inflows from agricultural exports are low due to unfavorable weather, we expect the Shilling to stay under pressure in the short term.