Economics and Markets
Off the Record: CFOs and Treasurers Target Working Capital Management and Supply Chain Support as Lockdowns Grip Markets
While governments and multilateral agencies announce a raft of measures to support businesses, banks, and individuals, UAE-based CFOs and treasurers batten down the hatches as focus shifts towards liquidity management, supplier support, and cost reduction.
29 Apr 2020
Nigeria Pledges Switch to Domestic Market Funding as IMF Approves USD3.4bn in Support
Nigeria’s government plans to hold off borrowing internationally and instead tap the domestic market to finance the 2020 budget, the country’s president said this week. The move is seen as an important shift in government policy amidst tumbling oil prices and rising bond yields.
29 Apr 2020
Dubai, Saudi Arabia Start Easing Lockdown Measures
Authorities in Dubai and Saudi Arabia are to begin easing lockdown measures, although most restrictions on group gatherings remain in place.
27 Apr 2020
Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead
EM came under greater pressure last week as market sentiment soured. Some countries underperformed due to their own idiosyncratic risks, such as Brazil and Mexico. Markets will get their first glimpse of the mainland Chinese economy with official PMI readings, but we doubt continued improvement there will be enough to boost sentiment significantly. Neither will dovish outcomes from BOJ, Fed,…
27 Apr 2020
ADB approves USD1.5bn financing to support Philippines
The Asian Development Bank has announced a USD1.5bn financing package to support the Philippines’ response to COVID-19. The budget support will help protect the Philippines’ population and the healthcare system.
27 Apr 2020
Ashmore: The Case for a Global Macro-Prudential Policy
The tendency for global capital to flee ‘risky’ Emerging Markets (EM) countries indiscriminately in favour of ‘risk free’ developed markets during outbreaks of global risk aversion is one of the great international market failures of our time. This behaviour has been ubiquitous in past crises and the 2020 Coronavirus Crisis is no exception. EM countries have experienced indiscriminate outflows,…
24 Apr 2020
Turkey’s Central Bank Cuts Rates More than Expected, Raising Concerns Over FX-Denominated Debt
Turkey’s Central Bank cut the policy rate by a full percentage point to 8.75% this week in a bid to lower the cost of domestic borrowing, but analysts warn the move could pile additional pressure on the country’s corporate sector by making it harder to pay back foreign currency debt.
23 Apr 2020
GCC States’ Deficits Set to Rise Sharply Due to Pandemic Disruption - Fitch
The twin shock of coronavirus and plummeting oil prices have put the brakes on global growth. Combined with widespread outflows, a strengthening US dollar and a global recession, emerging markets face an unprecedented flurry of headwinds. According to a recent report from Fitch, weaker rated GCC sovereigns may be vulnerable to a downgrade in the current market conditions.
23 Apr 2020
IMF Approves USD274mn Support Package to Paraguay
The IMF’s Executive Board has approved a USD274mn emergency support package for immediate disbursement to Paraguay in order to alleviate the economic shock caused by COVID-19.
23 Apr 2020
BlackRock Hits Pause on Emerging Market Local Debt Citing FX Concerns
BlackRock is shifting gears on emerging market local debt on the back of what it sees as further currency depreciation risk following the introduction of easing measures in some developing countries.
22 Apr 2020