Settles at Rs133.6 in inter-bank market after govt opts for an IMF bailout
11 October, 2018, 23:04
Based on the trade tariffs already in place, the organisation revised down its estimates of world growth this year and next by 0.2 of a percentage point to a still healthy 3.7 per cent.
A bull run has taken US equities to record highs this year.
The News Agency of Nigeria (NAN) reports that the 2018 Annual Meetings of the International Monetary Fund and WBG was organised to bring together experts to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development and aid effectiveness.
"We need to join hands to fix the current trade system, not destroy it", she added.
Also, IMF's Financial Counsellor and Director, Tobias Adrian, clarified that the lender was in no way against borrowing, but noted that in recent years, there had been increases in countries that issue debts in global capital markets, adding that the development is good for Nigeria.
It had warned how the U.S. and China was making the world a "poorer and more risky place" as the nations remain locked in a tit-for-tat trade conflict, slapping strings of tariffs on each other.
"Trade is very critical because that is what has lifted people out of extreme poverty", Kim said. On Monday, the currency was trading at 128 per USA dollar on the open market and 124.20 in the official interbank rate.
The risk of a global financial crisis initiated by sharp capital outflows in emerging markets due to the divergence of monetary policies in the USA and developing countries remains small but will grow as the Federal Reserve continues to raise its interest rates, as it is expected to do this year and next. -China trade war, coupled with threatened global USA automotive tariffs and retaliation from trading partners.
"The government has chose to approach the International Monetary Fund for stabilisation and an economic recovery programme", said the Finance Ministry in a statement after the stock market suffered an over 1,300-point plunge, losing nearly 270 billion Pakistani rupees ($2 billion) of its capitalisation - the highest single-day loss in a decade.
The IMF said the balance of risks was now tilted to the downside, with a higher likelihood that financial conditions will tighten further as interest rates normalize, hurting emerging markets further at a time when USA -led demand growth will start to slow as some tax cuts expire.
Kim said the World Bank has launched a "human capital index" to help rank countries by the level of their investments in such areas as education and health care.
The Pakistani government's decision will create hardships for Imran Khan as the IMF's tough conditions will result in price hike.
Finance Minister, Zainab Shamsuna Ahmed who is the leader of the Nigerian delegation to the Annual General Meeting is expected to be part of the meeting.
In a press conference at the White House on Tuesday, President Trump said "China wants to make a deal and ... they're not ready yet", adding that is a reason his administration has canceled a couple of meetings with Beijing.