2022: Nigeria, Others Lost $241 Billion External Reserve

 

According to the new report, by the United Nations Conference on Trade and Development (UNCTAD), findings show that as of last year, 81 developing countries (excluding China) lost $241 billion in international reserves.

According to UNCTAD, on Wednesday 7 percent was recorded as the average decline in the developing country, and also over 10 percent was recorded in 20 countries.

According to the new report, there is a decline in the gross external reserves in one  f the developing countries is known as Nigeria.

Speaking to the report by central bank of Nigeria, in March this year thgeriNigeria's external reserve declines to $35.74 billion indicating lowest balance since 2021.

According to the uUnitedConference on Trade and Development, statement Since the global economy slows down, the developing country are facing difficulty. 

According  to the UN trade and development body, over $800billion estimated as the interest rate in the developing countries. 

“Developing countries face the crushing effect of soaring debt, interest rate hikes, high food price, insufficient  liquidity,” it said.

According to the UN trade and development bod , As both private and public sector cost squeez  productive investment many developing countries face a deepening development crisis. 

“A shortfall of international liquidity has already turned unforeseen shocks into a vicious financial cycle in some countries,” it said.

“Meanwhile, borrowing costs, measured through sovereign bond yields, increased from 5.3 percent to 8.5 percent for 68 emerging markets. Overall, external creditors’ pressure on developing countries to reduce fiscal deficits is expected to increase.”

 Speaking on UNCTAD statement, concerning the slowdown in economic growth in developing countries.

 “Record profits for agricultural commodity traders have been driven by economic uncertainty and market volatility over the past four years.”

“Indeed, no country has been able to issue a Eurobond since spring 2022,” IMF said “The interest burden on public debt is rising, owing to a greater reliance on expensive market-based funding combined with a long-term decline in aid budgets.”

Speaking on IMF statement, imbalance of macroeconomics are affected by the lack of finances.

“Public debt and inflation are at levels not seen in decades, with double-digit inflation present in about half of the countries—eroding household purchasing power and striking at the most vulnerable. In this context, the economic recovery has been interrupted,” IMF said in the report.

According to the IMF statement, there is a decrease in sub-Saharan growth by 3.6 percent this year. 

IMF Further said “Amid a global slowdown, activity is expected to decelerate for a second year in a row.

“Still, this headline figure masks significant variation across the region. The funding squeeze will also impact the region’s longer-term outlook.

“A shortage of funding may force countries to reduce resources for critical development sectors like health, education, and infrastructure, weakening the region’s growth potential,” IMF said.