Prophetic warning received.
IMF provides R65bn emergency funding for SA to tackle Covid-19
By Siphelele Dludla Aug 23, 2021
THE GOVERNMENT’S finances will be boosted further with a R65 billion ($4.16bn) injection as the International Monetary Fund (IMF) Special Drawing Rights (SDRs) become effective today.
Earlier this month, the IMF board of governors approved the general allocation of SDRs equivalent of $650bn, the largest IMF emergency currency creation in history, to tackle the Covid19 global pandemic.null
The newly created SDR is the first tranche, since the $250bn that was issued soon after the global financial crisis in 2009.
The SDR is meant to boost global liquidity and will be credited to IMF member countries in proportion to their existing quotas in the Fund. The IMF said the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.
IMF sends a warning to South Africa
Staff Writer 9 December 2021
The International Monetary Fund (IMF) held virtual consultations with South African officials from 17 November to 7 December to discuss recent economic developments and the outlook of the economy.
In its findings published on Wednesday (8 December), the group noted that South Africa’s cyclical recovery in 2021 has been relatively strong, with estimates of a 4.6% GDP rebound after the economy contracted by -6.4% in 2020.
The recovery was also supported by external factors, such as favourable commodity prices and benign financial conditions, which are likely temporary, it said.
However, it warned that the rebound has not decreased the unemployment rate amid deteriorating confidence, exacerbated by the July social unrest episode, anaemic private-sector investment, and weak credit extension.