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African central banks face serious challenges, says IMF

Report suggests short-term measures, but says central banks also need structural reforms

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The International Monetary Fund has published suggestions for how African central banks can deal with reduced growth and higher inflation after the Covid-19 pandemic.

In the short term, they could, where possible, carry out foreign exchange interventions, restrict capital flows and implement macro-prudential measures. In the longer term, the IMF says they need to address structural problems, including currency mismatches, weak financial markets and lack of monetary policy credibility.

African

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