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IMF warns British economic plan

IMF warns British economic plan

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In terms of foreign exchange reserves, according to HM Treasury, Britain has net official reserves of US$ 114 billion whereas it plans to embark on an economic plan to pull itself out of the stagflation quagmire by spending no less than US$ 173 billion dollars. If Britain were to use all its foreign exchange reserves to meet the cost of its economic plan it would run short of money and still have a deficit of US$ 59 billion dollars before fully implementing its plan.

Fair enough and granted, governments do not always have to spend cash that they have on hand. They can always borrow if they do not have sufficient cash to finance their operations.

Herein is the problem, the current economic environment does not support borrowing either by individuals, households, or governments. The cost of borrowing is just simply too high either by domestic debt or foreign debt. The Bank of England in acting against rising inflation has been raising interest rates. This translates to higher borrowing costs and reduced inflation.

Queen Elizabeth II, Britain’s seven-decade figurehead and the longest-reigning monarch died aged 96. www.theexchange.africa

Queen Elizabeth II: Building post-independence Commonwealth for African nations

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Queen Elizabeth II’s leadership of the Commonwealth for the past seven decades has remained admirable. She steered the institution’s evolution into a forum for effective multilateral engagement whose potential to drive tremendous socioeconomic progress remains incontestable and redounds to the Queen’s historic legacy.

Over the years, Britain’s interactions with its former colonies in Africa have grown to diplomacy, aid, trade and economic growth. The Queen has, over the years, remained highly revered and recognized as the head of the Commonwealth. The Queen has now rested. Her death breeds a wave of uncertainty about the future of the organization. The possibility of the status of the British monarch also disappearing becomes more visible. At this point, the rout of the British monarchy in Africa could be complete.