Debt
Governor of the year: Mario Marcel
Chile’s governor has expertly navigated a third currency crisis in two years, amid wider EM stress and political volatility, while bolstering the central bank’s capabilities
Russia likely to default on sovereign debt
Putin and finance minister say country may make payments in rubles
Sudan floats currency
Decision follows adoption of single unified exchange rate
Digital money and central banks
Central banks must reflect on the monetary policy, regulatory and financial stability implications from crypto assets, stablecoins and CBDCs to stay relevant in the digital age of money
Economists warn Latin America faces another lost decade
Continent is “halfway to a lost decade already”, says World Bank’s Carmen Reinhart
IMF and Argentina reach preliminary agreement on new programme
Argentina must implement new monetary policy framework as part of $45 billion aid package
Latin American dollar debts could cause systemic risk, paper says
Authors say the Fed risks a major policy mistake if it ignores the wider impact of tighter US policy
Rethinking sovereign risk
‘Risk-free’ assets now include the possibility of complete confiscation with no recourse
FOMC’s January minutes hint at policy actions and inflation fears
Committee signals determination to end asset purchases in March and raise the funds rate
Honduran Congress clears way for SDR loan
Declaration of “emergency” will allow government to access $335 million held at central bank
US Treasury opposes ending IMF surcharges
Biden administration rejects initiative championed by Democratic progressives
IMF says Sarb should consider lowering inflation target
Lower inflation could bring various benefits, but only “when circumstances allow”, say staff
Has the IMF found a way forward for Argentina?
Withdrawing monetary financing would put pressure on government budget, analysts warn
Saudi sovereign wealth fund gets first-ever credit rating
Public Investment Fund prepares for bond issues and lending initiatives
Picking up the pieces: how to tackle the next phase of the Covid crisis
The global economy is heading into dangerous territory, writes Jagjit Chadha. Central banks must honour their commitments to price stability
Cape Verde SWF to stay under central bank
President rejected law to move oversight to securities regulator
Suriname courts convict second former governor
Van Trikt receives eight years in prison, weeks after Hoefdraad sentencing
IMF warns El Salvador on crypto
Executive board recommends “removing bitcoin’s legal tender status”
Mozambique’s government owes central bank over $600 million – auditors
Auditors say government is obliged to compensate central bank over forex movements
Eurozone deficits and debt declined in Q3 2021
But debt levels in the bloc remain at high levels, especially in Southern Europe
Argentina raises rates for first time since 2020
BCRA raises benchmark rate 200 basis points, as IMF talks continue
Papua New Guinea reforms central bank and forces out governor
Law changes board and policy framework, and allows central bank financing
IMF finds Argentina bailout ‘did not deliver on its objectives’
Largest-ever IMF loan was ineffective and “not sufficiently robust”
Former Suriname governor sentenced to 12 years
Gillmore Hoefdraad fled country to avoid trial in case involving another former governor