Browsing: Federal Reserve

China's role in Africa external debt

In the last 20 years, Africa’s external debt has grown fivefold to about $700 billion. According to Chatham House, a policy centre in London, Chinese lenders account for about 12 per cent of that amount. As of November 2022, the International Monetary Fund (IMF) and the World Bank considered 22 low-income African countries to either be in debt distress or facing potential external debt distress.…

Strong US dollar
  • Economic experts are of the view that the banking crisis that spooked investors and sent shockwaves around the world could ultimately be beneficial for global financial markets.
  •  DeVere Group CEO Nigel Green says banking crisis could ultimately prove to be beneficial for global markets. 
  •  The emergency lifelines being thrown to banks by regulators and governments, among others, appear to have now halted contagion within the sector.

The banking crisis that spooked investors and sent shock waves around the world could ultimately be beneficial for global financial markets.

This is according to Nigel Green, the CEO and founder deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations who says the banking crisis could trigger a vital intervention from governments to stabilise the markets.

Green says the emergency lifelines being thrown to banks by regulators and governments, among others, appear to have now halted contagion within …

Africa's debt sustainability struggles

Over the past decade, African countries have accumulated external debt at a faster pace. The countries have capitalized on abundant, low-cost international credit for fiscal and balance-of-payments funding to help drive development plans.

Africa’s total external debt, accrued by both the private and public sectors, owed to foreign lenders, has surpassed $1 trillion. The related annual debt servicing costs broke through the $100 billion threshold for the first time in 2021.…

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Bitcon falls by 29% as $2.5 billion of Crypto is liquidated. www.theexchange.africa

The Crypto market in the world is looking ugly.

The bitcoin price fell to a three-month low on January 10, accelerating the slide that started when the Federal Reserve ignited a broad sell-off worth US$300 billion. The bank cautioned that it might move more quickly than previously expected to reverse policy meant to reinforce the economy during the Coronavirus pandemic.

Experts predict that the latest crypto fall will persist for weeks in the Federal Reserve measures continue to be more aggressive.…

Bitcoin has been oscillating making it unsteady. www.theexchange.africa

As the rise and fall becomes more frequent and intense, it confirms that bitcoin does not follow a come -around -go-around trend.
In October this year, bitcoin drooped intensely before breaking the roof to hit a record high of US$66893.22. Investor psychology can be used to explain the trend in digital currency.

On a normal day, bitcoin investors use a fall in bitcoin worth as a go ahead to purchase, due to low prices at this time. The investors then wait to reach highs to sell off their accumulated assets; creating a loop of buying and selling.…