Day: March 23, 2021


NIGERIA: Tussle over naira devaluation amid grim macroeconomic picture

During a foreign-press briefing on 22 March, Finance Minister Zainab Ahmed announced that the government had abandoned the official exchange rate and would instead use the market-based Nigerian Autonomous Foreign Exchange (NAFEX) rate. Although this would constitute the third de-facto devaluation in a year, Nigeria will not go so far as to let the currency float.… Read the rest


ARGENTINA: Kirchnerismo engulfing moderate Peronism

  • While Finance Minister Martin Guzman is meeting with the International Monetary Fund (IMF)’s Kristalina Georgieva today, 23 March, recent events in Buenos Aires provide the best indication of the government’s political and economic direction of travel.
  • Vice-President Cristina Fernandez (CFK)’s pursuit of legal impunity for herself and her children is not a political sideshow but has crucial implications for economic policy and electoral strategy.
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Emerging Markets

MACRO: Policy responses to Covid-19

Below is our weekly summary table on the health and economic policies that selected governments around the world are implementing to counter the fallout from Covid-19. The updated table includes information about each country’s vaccination strategy. Please do not hesitate to contact us if you want to discuss any of the countries mentioned in more detail.… Read the rest


Argentina: Tax Policy Has Gone Bananas

Few things reflect a divergence from normal countries’ policy choices than the proposals to modify the Income tax that are in Congress. We have already discussed in this report about the regressiveness of the elimination of Income tax for workers with salaries of up to 150,000 pesos per month, mostly in the second-highest income decile, in addition to destroying the concept of marginal rates.… Read the rest


TURKEY: Resurgent virus and vaccine worries could put tourism season at risk

  • Yesterday (22 March), Turkey recorded 22,216 new coronavirus cases, the highest daily number since mid-December, as cases continue to rise after restrictions were eased earlier this month.
  • Meanwhile, there are growing concerns about Turkey’s ability to secure an adequate supply of vaccines as the authorities have already missed various procurement targets.
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US/CHINA: Will human rights pressure derail progress on other issues?

  • After a rancorous start, closed-door talks in Alaska between top US and Chinese diplomats
  • But gaps between the US and Chinese accounts of the meeting reflect the formidable political obstacles to repairing relations, especially in Washington.
  • Significant progress towards improved US-China relations will depend on whether Washington insists on intermingling human rights with other issues where compromise is more feasible.
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