Ghana is grappling with runaway inflation as prices of basic commodities have spiralled. Government finances are also at their weakest in years. Ghana’s local currency, the cedi, is now the world’s worst performer against the US dollar – a signal of the depth of the country’s economic crisis. Over the past few months, various scholars […]
Can the South Asian economy break from the past and find a route to stability?
Sri Lanka has a new president and prime minister – but a change in who leads the crisis-hit South Asian nation alone will not solve the country’s severe economic problems. Ranil Wickremesinghe – who on July 20, 2022, was voted in by lawmakers to replace fleeing former president Gotabaya Rajapaksa – and his appointed premier […]
the pros and cons of borrowing abroad versus at home
A government which decides to borrow – either because it has programmed a budget deficit or needs to refinance maturing debts – faces two, non-mutually exclusive possibilities: borrow domestically in the local currency or borrow externally in a foreign currency. Developed countries borrow predominantly at home and in their currencies. This is because they have […]
Speaker McCarthy lays out initial cards in debt ceiling debate: 5 essential reads on why it’s a high-stakes game
Speaker McCarthy lays out initial cards in debt ceiling debate: 5 essential reads on why it’s a high-stakes game
Tinubu inherits Nigeria’s high debt – an economist analyses what this means for the country’s future
As the 16th president of Nigeria, Bola Ahmed Tinubu inherits an economy that is grappling with inflation, chronic unemployment, extreme poverty, crumbling infrastructure and insecurity. Nigeria’s debt profile stands out among these problems like a sore thumb. The country’s external debt stock – what it owes non-residents – was US$41.69 billion in 2022. Multilateral lenders […]
Nigeria’s debt is sustainable, but dangers loom on the horizon
The World Bank recently ranked Nigeria fifth on the list of 10 countries to which it has the highest debt exposure. Nigeria owes the International Development Association – one of the two lending arms of the World Bank – US$11.7 billion. The International Development Association lends to countries based on their relative poverty or per […]
Ghana and the IMF have struck a deal, but hard choices lie ahead
In mid-May 2023 the International Monetary Fund (IMF) finally approved a US$3 billion 36-month arrangement with Ghana. It immediately disbursed the first tranche of US$600 million. This is the second time in the past eight years that the country has approached the IMF. And it’s the 17th time since independence in 1957 – that’s roughly […]