Latest news with #IMF-World
Zawya
25-04-2025
- Business
- Zawya
In an age of uncertainty, Africa needs to lean towards resilience, inclusion, and transformation – Economic Commission for Africa (ECA) Chief
During an African Consultative Group meeting with IMF Managing Director Kristalina Georgieva organised on the margins of the IMF-World Bank Spring Meetings, Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA), discussed the pressing economic, social, and geopolitical challenges facing the continent. In his remarks, Gatete emphasised that African economies are currently navigating a complex landscape characterised by persistent funding shortages, trade disruptions, and escalating debt vulnerabilities. "We are meeting at a critical time of profound uncertainty," he stated, underscoring the intertwined nature of the obstacles confronting African nations. Mr. Gatete recognized the progress made by the IMF in implementing recommendations from the Africa High-level Working Group on the Global Financial Architecture, saying, 'We note the reforms to the Resilience and Sustainability Fund to have more catalytical role in attracting additional finance, broadening scope to include pandemic preparedness, strengthening collaboration with MDBs and streamlining programme reform measures.' Additionally, he commended the IMF for maintaining higher General Resources Account (GRA) access limits and for the advancements made in reforming IMF Arrears Policy during debt restructuring. However, he stressed that more action is required to address the continent's challenges effectively. Mr. Gatete highlighted some key priorities emanating from the recent ECA Conference of Ministers of Finance, Economic Development and Planning, noting their centrality in steering Africa toward resilience, inclusion, and transformation. He highlighted the urgent implementation of the African Continental Free Trade Area (AfCFTA), which aims to create a unified market across African nations and the need to build competitive, climate-smart, and digitally enabled regional value chains while harmonising industrial policies and improving infrastructure and logistics. To mobilise domestic resources, Mr. Gatete emphasised the need to enhance tax revenue collection through digitalisation, broadening the tax base, and improving tax administration. He also highlighted the necessity of combating illicit financial flows and revenue leakages while developing domestic financial markets. Lastly, Mr. Gatete reiterated the need to advance Global Financial Architecture Reform to ensure Africa's adequate representation and voice in global decision-making processes. He also stressed the need to align common positions in key global platforms, such as the G20, Financing for Development (FfD4), and the UN Tax Convention. Underscoring the importance of collaborative efforts required to navigate current complex challenges, Mr. Gatete expressed his commitment to partnering with the IMF and other stakeholders to secure meaningful reforms in these areas. "ECA remains your committed partner in this journey,' he affirmed. Distributed by APO Group on behalf of United Nations Economic Commission for Africa (ECA).
The Guardian
22-04-2025
- Business
- The Guardian
US dollar hits three-year low after Trump intensifies attack on Fed chair Powell
Show key events only Please turn on JavaScript to use this feature Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy. The US dollar has sunk to a three-year low as the exodus from US assets gathers pace. Traders are anxious after Donald Trump launched another blistering attack on America's top central banker yesterday, calling Jerome Powell 'Mr. Too Late' and 'a major loser', as the US president intensified his calls for US interest rate cuts. This has pushed the dollar down against a basket of currencies to its lowest level since March 2022. The US dollar index over the last decade Photograph: LSEG Against the yen, the dollar has hit a seven month low, trading at ¥140 for the first time since last September. Last week, Trump posted that 'Powell's termination cannot come fast enough'. Tony Sycamore, market analyst at IG, says Trump's attacks on Powell are leading to a lack of confidence in the markets: Their relationship has long been contentious. Despite appointing Powell in 2017, Trump has since expressed regret, criticising Powell for 'bad decisions' and being 'always too late and wrong.' Powell has countered by warning that Trump's tariffs could spur higher inflation and slower growth, contradicting Trump's claims of his policies' economic benefits. Yesterday (when European markets were closed), there were further losses on Wall Street, where the Dow Jones Industrial Average lost another 2.5%, or almost 1,000 points. Investors are also disappointed at the lack of progress in trade talks, following the hefty tariffs announced by Trump earlier this month. This is creating a worrying situation, in which the dollar, the US stock markets and US government bond prices are all falling. Typically in a crisis, US government debt and the dollar would rally as traders sought out a safe haven. 'The market reaction is arguably more about broader investor concerns that less credible US policy-making may erode the exorbitant privilege that has allowed the US to run high twin deficits than it is about the specific risk of political influence over the Fed's rates policy,' explains Jim Reid, market strategist at Deutsche Bank. The International Monetary Fund (IMF) will give its verdict on the economic consequences of the US trade war later today, when it releases the latest forecasts in its World Economic Outlook. Central bank governors, finance ministers, and other economic leaders are heading to Washington for the annual IMF-World Bank Spring Meetings. The agenda 9am BST: ECB Survey of Professional Forecasters 2pm BST: International Monetary Fund releases its latest World Economic Outlook. 3pm BST: European Union Consumer Confidence report 3.15pm: IMF releases its Global Financial Stability Report Share Show key events only Please turn on JavaScript to use this feature Japan's Minister of Finance Katsunobu Kato said today he aims to build on close discussions pertaining to currencies when he meets his US counterpart Scott Bessent in Washington this week, Bloomberg reports. Kato told a press conference today: 'Treasury Secretary Bessent and I are in close contact on currencies, and I would like to take this opportunity to hold further discussions during my visit. Kato was scheduled to depart for Washington today, where he'll represent Japan at a series of meetings including Group of 20 and International Monetary Fund gatherings. He said the timing for a meeting with Bessent is still under discussion. Share The weakness of the dollar has pushed the pound up to its highest level against the US currency in seven months. Sterling climbed to $1.3423 in early trading, up around half a cent, to its highest level since last September. Share Pippa Crerar Rachel Reeves will fly to Washington this week to argue for global free trade in the face of Donald Trump's punitive tariffs, amid continued international economic turbulence. The UK chancellor will use the spring meetings of the International Monetary Fund, which is attended by top finance ministers and central bankers, to make the case that free trade is in both British and global interests. One senior official said: 'We're facing a new economic reality, but we're a heavily trading country, with the value of our exports the equivalent of 60% of GDP, so it's always in our own interests to promote free trade.' Reeves will urge the Trump administration to cut punitive tariffs on UK car and steel exports and step up negotiations for a trade deal when she meets the US Treasury secretary, Scott Bessent, for the first time, allies said. He is seen as one of the less hardline US voices on trade. Reeves to make case for free global trade at Washington IMF talks Share Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy. The US dollar has sunk to a three-year low as the exodus from US assets gathers pace. Traders are anxious after Donald Trump launched another blistering attack on America's top central banker yesterday, calling Jerome Powell 'Mr. Too Late' and 'a major loser', as the US president intensified his calls for US interest rate cuts. This has pushed the dollar down against a basket of currencies to its lowest level since March 2022. The US dollar index over the last decade Photograph: LSEG Against the yen, the dollar has hit a seven month low, trading at ¥140 for the first time since last September. Last week, Trump posted that 'Powell's termination cannot come fast enough'. Tony Sycamore, market analyst at IG, says Trump's attacks on Powell are leading to a lack of confidence in the markets: Their relationship has long been contentious. Despite appointing Powell in 2017, Trump has since expressed regret, criticising Powell for 'bad decisions' and being 'always too late and wrong.' Powell has countered by warning that Trump's tariffs could spur higher inflation and slower growth, contradicting Trump's claims of his policies' economic benefits. Yesterday (when European markets were closed), there were further losses on Wall Street, where the Dow Jones Industrial Average lost another 2.5%, or almost 1,000 points. Investors are also disappointed at the lack of progress in trade talks, following the hefty tariffs announced by Trump earlier this month. This is creating a worrying situation, in which the dollar, the US stock markets and US government bond prices are all falling. Typically in a crisis, US government debt and the dollar would rally as traders sought out a safe haven. 'The market reaction is arguably more about broader investor concerns that less credible US policy-making may erode the exorbitant privilege that has allowed the US to run high twin deficits than it is about the specific risk of political influence over the Fed's rates policy,' explains Jim Reid, market strategist at Deutsche Bank. The International Monetary Fund (IMF) will give its verdict on the economic consequences of the US trade war later today, when it releases the latest forecasts in its World Economic Outlook. Central bank governors, finance ministers, and other economic leaders are heading to Washington for the annual IMF-World Bank Spring Meetings. The agenda 9am BST: ECB Survey of Professional Forecasters 2pm BST: International Monetary Fund releases its latest World Economic Outlook. 3pm BST: European Union Consumer Confidence report 3.15pm: IMF releases its Global Financial Stability Report Share
