The Time is Nigh: How Reforms Can Bring Back Productivity Growth in Emerging Markets

Much of this has been said before but it’s worth repeating at a time when growth in many emerging markets has slowed.

iMFdirect - The IMF Blog

By  Era Dabla-Norris and Kalpana Kochar

(Version in Español)

The era of remarkable growth in many emerging market economies fueled by cheap money and high commodity prices may very well be coming to an end.

The slowdown reflects not just inadequate global demand, but also structural factors that are rendering previous growth engines less effective, and the fact that economic “good times” reduced the incentives to implement further reforms to enhance productivity. With the end of the period of favorable global financing and trade conditions, the time is nigh for governments to make strong efforts to increase productivity—the essential foundation of sustainable growth and rising living standards.

View original post 621 more words

Emerging Markets Exchange Rates & Interest Rates – 13 December 2013

 

EXCHANGE RATES	12/6/2013	12/13/2013	%CHG
AMERICAS
ARGENTINA	6.2445	6.2913	-0.74%
BRAZIL	2.3351	2.3369	-0.08%
CHILE	526.7400	529.9300	-0.60%
COLUMBIA	1936.0000	1,930.5000	0.28%
COSTA RICA	498.9950	498.7500	0.05%
JAMAICA	103.3300	102.7300	0.58%
MEXICO	12.9546	12.9583	-0.03%
PERU	2.8000	2.7690	1.12%
TRINIDAD & TOBAGO	6.4100	6.4100	0.00%
VENEZUELA	6.2921	6.2921	0.00%
AFRICA
BOTSWANA	8.6843	8.6693	0.17%
COTE D’IVOIRE (CFA)	479.3610	477.7370	0.34%
GHANA	2.3250	2.3250	0.00%
KENYA	86.5000	86.5500	-0.06%
NAMIBIA	10.3298	10.3098	0.19%
NIGERIA	158.3300	158.8500	-0.33%
SENEGAL (CFA)	479.3610	477.7370	0.34%
SOUTH AFRICA	10.3298	10.3098	0.19%
TANZANIA	1606.0000	1,606.0000	0.00%
UGANDA	2524.5000	2,508.0000	0.66%
ZAMBIA	5.5850	5.5600	0.45%
ZAMBIA-Boz Bid	5.5656	5.5469	0.34%
ZAMBIA-Boz Ask	5.5856	5.5669	0.34%
ZIMBABWE	378.0000	378.0000	0.00%
INDIA	61.3250	62.1650	-1.35%
INTEREST RATES	12/6/2013	12/13/2013
UNITED STATES
3 month T-Bill	0.06%	0.07%
6 Month T-Bill	0.10%	0.09%
10 Year T-Bond	2.88%	2.88%
30 Yr Fixed Mortgage-Bankrate.com	4.55%	4.55%
30 Yr Fixed Mortgage-MBA	4.61%
AMERICAS
BRAZIL
SELIC Rate-Daily	9.89%	9.89%
MEXICO
3 Month T-Bill	3.49%	3.42%
6 Month T-Bill	3.55%	3.51%
1 Year T-Bill	3.64%	3.66%
PERU
Central Bank Reference Rate	4.00%	4.00%
AFRICA
GHANA
3 Month T-Bill	18.66%	18.68%
6 Month T-Bill	19.11%	18.80%
1 Year T-Bill	18.00%	17.50%
2 Year T-Bill	18.00%	17.50%
3 Year T-Bill
5 Year T-Bill
KENYA
3 Month T-Bill	9.76%	9.76%
6 Month T-Bill	10.47%	10.47%
1 Year T-Bond	10.84%	10.84%
4 Year T-Bond
NAMIBIA
3 month T-Bill
6 Month T-Bill
1 Year T-Bill
NIGERIA
91 Day Gov’t Security-OMO
182 Day Gov’t Security-OMO
364 Day Gov’t Security-OMO
91 Day Gov’t Security-PMO	11.26%	11.26%
182 Day Gov’t Security-PMO	11.86%	11.86%
364 Day Gov’t Security-PMO	13.19%	13.19%
SOUTH AFRICA
3 Month T-Bill	5.13%	5.08%
6 Month T-Bill	5.35%	5.43%
1 Year T-Bill	5.63%	5.59%
10.5% (2026)	8.46%	8.22%
13.5% (2015)	6.33%	6.11%
UGANDA
3 month T-Bill	10.80%	8.77%
6 Month T-Bill
1 Year T-Bill
2 Year T-Bond	14.17%	14.17%
3 Year T-Bond	14.02%	14.02%
5 Year T-Bond	14.77%	14.77%
10 Year T-Bond	14.38%	14.38%
ZAMBIA
3 Month T-Bill	8.00%	8.00%
6 Month T-Bill	14.74%	14.80%
1 Year T-Bill	15.48%	15.75%
2 Year T-Bill	14.00%	14.00%
3 Year T-Bill	15.50%	15.50%
5 Year T-Bond	16.50%	16.50%
10 Year T-Bond	18.15%	18.15%
15 Year T-Bond	18.00%	18.00%
INDIA
3 Month T-Bill	8.65%	8.77%
6 Month T-Bill	8.81%	8.81%
1 Year T-Bill	8.93%	8.85%
Base Lending Rate	10.25%	10.25%
Policy Rate	8.75%	8.75%

 

Emerging Markets Exchange Rates & Interest Rates – 6 December 2013

 

EXCHANGE RATES	11/29/2013	12/6/2013	%CHG
AMERICAS
ARGENTINA	6.1363	6.2445	-1.73%
BRAZIL	2.3333	2.3351	-0.08%
CHILE	531.2200	526.7400	0.85%
COLUMBIA	1,931.7000	1936.0000	-0.22%
COSTA RICA	499.0200	498.9950	0.01%
JAMAICA	102.9300	103.3300	-0.39%
MEXICO	13.1038	12.9546	1.15%
PERU	2.8015	2.8000	0.05%
TRINIDAD & TOBAGO	6.4100	6.4100	0.00%
VENEZUELA	6.2921	6.2921	0.00%
AFRICA
BOTSWANA	8.6170	8.6843	-0.77%
COTE D’IVOIRE (CFA)	481.7720	479.3610	0.50%
GHANA	2.2750	2.3250	-2.15%
KENYA	86.6200	86.5000	0.14%
NAMIBIA	10.1666	10.3298	-1.58%
NIGERIA	158.3000	158.3300	-0.02%
SENEGAL (CFA)	481.7720	479.3610	0.50%
SOUTH AFRICA	10.1666	10.3298	-1.58%
TANZANIA	1,614.0000	1606.0000	0.50%
UGANDA	2,525.0000	2524.5000	0.02%
ZAMBIA	5.5350	5.5850	-0.90%
ZAMBIA-Boz Bid	5.5107	5.5656	-0.99%
ZAMBIA-Boz Ask	5.5307	5.5856	-0.98%
ZIMBABWE	378.0000	378.0000	0.00%
INDIA	62.4900	61.3250	1.90%
INTEREST RATES	11/29/2013	12/6/2013
UNITED STATES
3 month T-Bill	0.06%	0.06%
6 Month T-Bill	0.11%	0.10%
10 Year T-Bond	2.75%	2.88%
30 Yr Fixed Mortgage-Bankrate.com	4.44%	4.55%
30 Yr Fixed Mortgage-MBA	4.51%
AMERICAS
BRAZIL
SELIC Rate-Daily	9.90%	9.89%
MEXICO
3 Month T-Bill	3.49%	3.49%
6 Month T-Bill	3.56%	3.55%
1 Year T-Bill	3.62%	3.64%
PERU
Central Bank Reference Rate	4.00%	4.00%
AFRICA
GHANA
3 Month T-Bill	18.87%	18.66%
6 Month T-Bill	19.25%	19.11%
1 Year T-Bill	18.00%	18.00%
2 Year T-Bill	18.20%	18.00%
3 Year T-Bill
5 Year T-Bill
KENYA
3 Month T-Bill	9.82%	9.76%
6 Month T-Bill	10.52%	10.47%
1 Year T-Bond	10.94%	10.84%
4 Year T-Bond
NAMIBIA
3 month T-Bill
6 Month T-Bill
1 Year T-Bill
NIGERIA
91 Day Gov’t Security-OMO
182 Day Gov’t Security-OMO
364 Day Gov’t Security-OMO
91 Day Gov’t Security-PMO	10.99%	11.26%
182 Day Gov’t Security-PMO	12.14%	11.86%
364 Day Gov’t Security-PMO	13.18%	13.19%
SOUTH AFRICA
3 Month T-Bill	5.12%	5.13%
6 Month T-Bill	5.24%	5.35%
1 Year T-Bill	5.48%	5.63%
10.5% (2026)	8.33%	8.46%
13.5% (2015)	6.20%	6.33%
UGANDA
3 month T-Bill	10.80%	10.80%
6 Month T-Bill
1 Year T-Bill
2 Year T-Bond	14.17%	14.17%
3 Year T-Bond	14.02%	14.02%
5 Year T-Bond	14.77%	14.77%
10 Year T-Bond	14.38%	14.38%
ZAMBIA
3 Month T-Bill	8.00%	8.00%
6 Month T-Bill	14.74%	14.74%
1 Year T-Bill	15.48%	15.48%
2 Year T-Bill	14.00%	14.00%
3 Year T-Bill	15.50%	15.50%
5 Year T-Bond	16.50%	16.50%
10 Year T-Bond	18.15%	18.15%
15 Year T-Bond	18.00%	18.00%
INDIA
3 Month T-Bill	8.94%	8.65%
6 Month T-Bill	9.12%	8.81%
1 Year T-Bill	8.93%	8.93%
Base Lending Rate	10.25%	10.25%
Policy Rate	8.75%	8.75%

 

3 SOURCES OF CLEAN(ER) ENERGY FINANCE IN AFRICA

We are in a new era of energy production, exploration and innovation in Africa. Oil exploration is happening in many parts of the continent and production has begun in Ghana and other countries in West and East Africa. But there is growing investor interest in cleaner energy sources. For example:

• Ten African clean energy startups gave presentations to The West Africa Forum for Clean Energy Financing. The startups were winners of a business plan competition held in March of this year by the Climate Technology Initiative Private Financing Advisory Network. The plan was a collaboration with ECOWAS and the Sustainable Energy Fund for Africa. These organizations are positioned to fund startups and small scale projects. http://allafrica.com/stories/201310280618.html

• The African Renewable Energy Fund (AREF) is a private equity fund targeting small to mid sized energy projects in Sub-Saharan Africa. AfDB has contributed $25 million and an additional $39.5 million will come from partner organizations including the Sustainable Energy Fund for Africa ($25 million, to the main fund and $10 million to the Project Support Facility), and the Global Environment Facility ($4.5 million). The targeted fund size is $150-200 million. AREF is managed by Berkeley Energy. The fund will support several AfDB initiatives including the Climate Change Action Plan for 2011-2015.

  http://allafrica.com/stories/201311131489.html

• Sovereign wealth funds are making enormous investments in energy. For example, the Temesek Fund of Singapore has acquired a $1.3 billion liquified natural gas block. The block was bought from Ophir Energy of the UK, indicating that sovereign wealth funds in addition to funding large projects could provide an exit for earlier stage investors. While not a direct investment in an African owned entity, the deal does signal a level of confidence in an asset in Tanzania. If fact 10% of the fund is allocated to investments in the developing world outside Asia, implying a potentially large chunk going to Africa.

  http://www.forbes.com/sites/chriswright/2013/11/19/temaseks-africa-investment-a-sign-of-the-future-for-sovereign-wealth-funds/.Upgq0yjKevU.twitter

Energy entrepreneurs should give serious consideration to starting or supporting projects in Africa. The need has been there for a long time. Now capital, management and technical assistance, and other resources are becoming available.

 

Emerging Markets Exchange Rates & Interest Rates – 29 November 2013

EXCHANGE RATES	11/22/2013	11/29/2013	%CHG
AMERICAS
ARGENTINA	6.0815	6.1363	-0.89%
BRAZIL	2.2904	2.3333	-1.84%
CHILE	519.2450	531.2200	-2.25%
COLUMBIA	1927.9300	1,931.7000	-0.20%
COSTA RICA	498.9450	499.0200	-0.02%
JAMAICA	102.9300	102.9300	0.00%
MEXICO	13.0334	13.1038	-0.54%
PERU	2.8015	2.8015	0.00%
TRINIDAD & TOBAGO	6.4100	6.4100	0.00%
VENEZUELA	6.2921	6.2921	0.00%
AFRICA
BOTSWANA	8.5948	8.6170	-0.26%
COTE D’IVOIRE (CFA)	485.0140	481.7720	0.67%
GHANA	2.2650	2.2750	-0.44%
KENYA	86.6500	86.6200	0.03%
NAMIBIA	10.0840	10.1666	-0.81%
NIGERIA	158.6100	158.3000	0.20%
SENEGAL (CFA)	485.0140	481.7720	0.67%
SOUTH AFRICA	10.0840	10.1666	-0.81%
TANZANIA	1614.0000	1,614.0000	0.00%
UGANDA	2537.0000	2,525.0000	0.48%
ZAMBIA	5.4800	5.5350	-0.99%
ZAMBIA-Boz Bid	5.4818	5.5107	-0.52%
ZAMBIA-Boz Ask	5.5018	5.5307	-0.52%
ZIMBABWE	378.0000	378.0000	0.00%
INDIA	62.8900	62.4900	0.64%
INTEREST RATES	11/22/2013	11/29/2013
UNITED STATES
3 month T-Bill	0.07%	0.06%
6 Month T-Bill	0.10%	0.11%
10 Year T-Bond	2.75%	2.75%
30 Yr Fixed Mortgage-Bankrate.com	4.39%	4.44%
30 Yr Fixed Mortgage-MBA	4.48%
AMERICAS
BRAZIL
SELIC Rate-Daily	9.40%	9.90%
MEXICO
3 Month T-Bill	3.50%	3.49%
6 Month T-Bill	3.56%	3.56%
1 Year T-Bill	3.62%	3.62%
PERU
Central Bank Reference Rate	4.00%	4.00%
AFRICA
GHANA
3 Month T-Bill	19.01%	18.87%
6 Month T-Bill	19.36%	19.25%
1 Year T-Bill	18.00%	18.00%
2 Year T-Bill	18.20%	18.20%
3 Year T-Bill
5 Year T-Bill
KENYA
3 Month T-Bill	10.00%	9.82%
6 Month T-Bill	10.60%	10.52%
1 Year T-Bond	10.99%	10.94%
4 Year T-Bond
NAMIBIA
3 month T-Bill
6 Month T-Bill
1 Year T-Bill
NIGERIA
91 Day Gov’t Security-OMO
182 Day Gov’t Security-OMO
364 Day Gov’t Security-OMO
91 Day Gov’t Security-PMO	10.99%	10.99%
182 Day Gov’t Security-PMO	12.14%	12.14%
364 Day Gov’t Security-PMO	13.18%	13.18%
SOUTH AFRICA
3 Month T-Bill	5.06%	5.12%
6 Month T-Bill	5.15%	5.24%
1 Year T-Bill	5.42%	5.48%
10.5% (2026)	8.22%	8.33%
13.5% (2015)	6.10%	6.20%
UGANDA
3 month T-Bill	11.05%	10.80%
6 Month T-Bill
1 Year T-Bill
2 Year T-Bond	14.17%	14.17%
3 Year T-Bond	14.02%	14.02%
5 Year T-Bond	14.77%	14.77%
10 Year T-Bond	14.38%	14.38%
ZAMBIA
3 Month T-Bill	7.50%	8.00%
6 Month T-Bill	14.15%	14.74%
1 Year T-Bill	15.25%	15.48%
2 Year T-Bill	14.00%	14.00%
3 Year T-Bill	15.50%	15.50%
5 Year T-Bond	16.50%	16.50%
10 Year T-Bond	18.15%	18.15%
15 Year T-Bond	18.00%	18.00%
INDIA
3 Month T-Bill	8.94%	8.94%
6 Month T-Bill	9.12%	9.12%
1 Year T-Bill	8.99%	8.93%
Base Lending Rate	10.25%	10.25%
Policy Rate	8.75%	8.75%