Bloomberg: Dollar Scarcity Pushing More African Countries Into Economic Crises
A Bloomberg report has stated that the current continent-wide scarcity of the United States dollar is further pushing many already beleaguered African countries into deeper economic crises.
Amid a deepening shortage of hard currency on the continent, the report stated that governments are now turning to bartering, currency devaluations, central bank exchange controls, and help from the International Monetary Fund (IMF) and Middle East to shore up their balance sheets.
The dollar shortage is also hurting consumers and local businesses as import costs soar, fuelling inflation, the report noted.
In the same vein, it noted that investors are rewarding nations whose efforts to boost dollar liquidity are paying of, but are punishing those that can’t guarantee access to the currency they need to invest and repatriate returns.
They are also steering clear of countries without adequate reserves to cover import costs or debt repayments. “African currencies are the worst performers in the world this year, with about a dozen sliding at least 15 per cent against the dollar,” it added.
Bloomberg: Dollar Scarcity Pushing More African Countries Into Economic Crises
A Bloomberg report has stated that the current continent-wide scarcity of the United States dollar is further pushing many already beleaguered African countries into deeper economic crises.
Amid a deepening shortage of hard currency on the continent, the report stated that governments are now turning to bartering, currency devaluations, central bank exchange controls, and help from the International Monetary Fund (IMF) and Middle East to shore up their balance sheets.
The dollar shortage is also hurting consumers and local businesses as import costs soar, fuelling inflation, the report noted.
In the same vein, it noted that investors are rewarding nations whose efforts to boost dollar liquidity are paying of, but are punishing those that can’t guarantee access to the currency they need to invest and repatriate returns.
They are also steering clear of countries without adequate reserves to cover import costs or debt repayments. “African currencies are the worst performers in the world this year, with about a dozen sliding at least 15 per cent against the dollar,” it added.
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