Multiple African nations seeking IMF financial support simultaneously — Ethiopia, Kenya, Ghana and Tanzania all in IMF programmes while currencies depreciated 8% against the dollar, creating the economic backdrop for accelerating crypto adoption.
Multiple African nations seeking IMF financial support simultaneously — Ethiopia, Kenya, Ghana and Tanzania all in IMF programmes while currencies depreciated 8% against the dollar, creating the economic backdrop for accelerating crypto adoption.
The East African country is now seeking a fresh credit program from the IMF.
The additional funding will strengthen the country’s reserves before its $2 billion Eurobond payment in June.
According to the CBK Governor, Kamau Thugge, the shilling has been overvalued for several years.
The depreciation has contributed to rising inflation in the region. Notably, inflationary pressures do not decline when local currencies strengthen against the US dollar, IMF says.
This comes weeks after Ghana met IMF’s condition of finalizing a zero-finance agreement with the Bank of Ghana.
This comes after the international lender says it has concluded the first review of an extended credit facility request by the East African country.
The three African countries are requesting loans to restore financial stability, worsened by the covid-19 pandemic and global supply chain crunch.
