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Africa Vulnerable to Fed Reserve Tapering – IMF

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has warned that Sub-saharan markets could be made vulnerable due to the start of Federal Reserve tapering in the United States.

Lagarde who said this on CNBC Africa, however, explained that the US economy was doing better.

The Central Bank of Nigeria (CBN) had revealed that the anticipated US quantitative easing programme may lead to further tightening of monetary policy in the country.

The Deputy Governor, Financial System Stability, CBN, Dr. Kingsley Chiedu Moghalu had said the Federal Reserve policy would lead to a rise in interest rate also in Europe, and “some pressure on the exchange rate and stock prices due to the impact of capital flows in Nigeria.”

Moghalu added: “That is why we do not think we have come to the end of the monetary tightening cycle.”

Continuing, the IMF boss noted that the growth in African countries’ budgets depends on their level of development.

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