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Vol 57 No 2

Published 22nd January 2016

Currency crunch

It will take more than devaluation to shield economies from tougher market conditions and political risks

There is a strong sense of déjà vu in the policy dilemmas that African governments face as national currencies weaken and national debts mount. Three decades ago, emissaries from the International Monetary Fund would tour the continent setting out their cure-all prescriptions, all offered in exchange for low interest loans. The devaluation of national currencies, slashing of national budgets, cuts in public sector payrolls and the sale of state-owned assets composed the structural adjustment bundle of policies pushed out by the IMF and World Bank.

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