Latest news with #International Monetary Fund
Bloomberg
5 hours ago
- Business
- Bloomberg
Malawi Faces $2 Billion Reserves Hole on Debt Arrears, IMF Says
Malawi's debt bill this year will be $2 billion more than what it holds in foreign reserves, according to the International Monetary Fund — an amount that's equivalent to almost a fifth of the nation's total economy. The Washington-based lender expects the southern African nation's gross reserves to slide to $118 million this year. Subtracting outstanding foreign-currency debt arrears, payments and what the fund labeled foreign currency drains leaves the balance deep in the red, projections published by the IMF on Tuesday showed.
CNA
13 hours ago
- Business
- CNA
Sri Lanka central bank holds rates on tariff uncertainty
COLOMBO :Sri Lanka's central bank held its benchmark interest rate steady at 7.75 per cent on Wednesday, pausing after May's surprise cut, to monitor the impact of U.S. tariffs on its economy and the transmission of earlier easing. The decision was widely expected, with most analysts in a Reuters poll predicting a hold amid stable inflation and a steady economic recovery. "The Board is of the view that the current monetary policy stance will help steer inflation towards the target of 5 per cent in the period ahead while supporting growth," the Central Bank of Sri Lanka said in a statement. Supported by a $2.9 billion programme from the International Monetary Fund, the island nation is gradually recovering from its worst financial crisis in decades, triggered by a record dollar shortage three years ago. The Central Bank of Sri Lanka (CBSL) had trimmed its benchmark interest rate by 25 basis points in May in a surprise move to support growth. The economy expanded 5 per cent in 2024, and the central bank expects growth to remain between 4 per cent and 5 per cent this year. Ten of 13 analysts and economists polled by Reuters had expected the CBSL to hold rates steady at its July meeting, citing benign inflation, stable growth, and uncertainty over U.S. trade policy. The United States initially imposed 44 per cent tariffs on Sri Lankan goods but lowered them to 30 per cent earlier this month. Colombo resumed talks with Washington last week in a bid to reduce the duties further before they take effect on August 1. Apparel, Sri Lanka's second-largest foreign exchange earner, is particularly exposed — the sector exports 40 per cent of its output to the U.S. and brought in $4.8 billion last year. It employs around 300,000 people, most of them women.
Bloomberg
a day ago
- Business
- Bloomberg
IMF Warns of Global Imbalances That Trump's Tariffs Won't Fix
The International Monetary Fund said imbalances in the global economy have increased, driven principally by domestic policies in the US and China that tariffs will do little to address. In its annual assessment of the external sectors of the largest economies, the institution said there was a 'sizable' widening of current account balances by 0.6 percentage point of global economic output in 2024.
South China Morning Post
4 days ago
- Business
- South China Morning Post
Why the global balance of power is shifting in China's favour
In recent years, the world has entered an acute phase of geopolitical confrontation, driven by structural problems such as trade imbalances. Historically, such crises have often been addressed through military conflicts aimed at weakening rivals and redirecting financial and trade flows. This logic is examined in The Price of War, a study of conflicts spanning over 150 years. Advertisement Since most major powers today possess weapons of mass destruction for deterrence, confrontation has largely taken on a hybrid form. Yet the United States' drive to solve domestic problems at others' expense remains, especially in its relations with China, Russia and the European Union. The toolbox of weapons has expanded to include economic tools such as tariffs or tech restrictions designed to limit the development of highly value-added industries. The White House might be confident about this arsenal, but US President Donald Trump's policies of tariffs, tax cuts and pressure on the US Federal Reserve have coincided with a weakening US dollar . Meanwhile, efforts to reduce the trade deficit have diminished both Washington's global role and overall investor confidence. The US dollar remains Washington's key economic weapon. But its declining status weakens US geopolitical influence. Since 2000, the US dollar's share in global reserves has fallen from 71 per cent to below 60 per cent. A recent study by the International Monetary Fund suggests that in times of rising global tension, countries diversify their currency holdings. The S&P 500's record performance , when measured in other major currencies, reveals a shift in the global financial system. Recent events are dispelling the illusion of US economic invincibility. Advertisement These trends are especially clear when viewed through a multidimensional national power index based on dozens of indicators such as demographics, technology, economy and military strength. My team at the Central Economics and Mathematics Institute of the Russian Academy of Sciences has developed a method to rank countries based on power.
Yahoo
6 days ago
- Business
- Yahoo
Milei Wins Second Upgrade by Moody's on Easing FX Controls
(Bloomberg) -- Argentina's credit rating was upgraded by Moody's Ratings for a second time this year, with the agency citing the easing of currency controls and support from the International Monetary Fund. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Moody's raised the country's credit score by two notches, to Caa1 from Caa3, on par with Egypt and Suriname, according to a statement on Thursday. The nation's outlook was changed to stable from positive. The upgrade comes amid President Javier Milei's attempts to transform South America's second-largest economy. Strategists and analysts alike have lauded the libertarian's efforts to tamp down rampant inflation and reverse years of endemic budget deficits. 'The upgrade reflects the decrease in the risk of a credit event, as the gradual lifting of foreign exchange restrictions enables a transition toward a more robust foreign exchange regime anchored on building international reserve buffers,' Moody's said in a note. Milei's policies have brought price increases to less than 2% a month, with annual inflation now at its lowest since 2020. He's also put the country on track for a primary surplus in 2025, the first in over 15 years, easing the debt burden. The economy returned to growth this year, expanding 7.7% in April, more than expected. But Wall Street has cautioned that despite a new IMF program and more liberal exchange regime, Milei and his team need to amass more hard-currency reserves, something that authorities have pledged they won't do until the peso trades at around a level of 1,000 per dollar. It is currently above 1,200. Another chief concern is whether Milei manages to expand his legislative support during midterm elections later this year. The vote is a key test of support for the administration's harsh belt-tightening campaign. Argentina's dollar bonds underperformed their peers on Thursday before the upgrade was announced, with notes maturing in 2035 losing 0.6 cents on the dollar to trade at around 64 cents, according to indicative pricing data compiled by Bloomberg. The notes now yield 11.94%. Moody's Ratings lifted Argentina's credit score one notch to Caa3 in January, and raised the outlook to positive from stable. Fitch Ratings then raised the nation to CCC+ from CCC in May. S&P Global Ratings affirmed its CCC rating in early February. --With assistance from Nicolle Yapur. (Updates with inflation figures in the fifth paragraph, bond prices in the eighth) How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P.
