Kuwait central bank says currency strong in statement issued after emir hospitalised - Reuters:
Kuwait’s central bank governor issued a statement on Saturday noting the strength and stability of the country’s currency, which is pegged to a weighted basket of the oil-exporting nation’s big trading partners.
The statement sent to Reuters came after the state news agency reported that Kuwait’s 91-year-old emir had been admitted to hospital and that the crown prince would temporarily exercise some of the ruler’s constitutional duties.
Saturday, 18 July 2020
#Iran's rial hits new low on unofficial market; virus, sanctions weigh - Reuters
Iran's rial hits new low on unofficial market; virus, sanctions weigh - Reuters:
The Iranian rial fell to a new low against the U.S. dollar on the unofficial market on Saturday and has now seen its value fall by almost half in 2020 as the economy comes under pressure from the coronavirus pandemic and U.S. sanctions.
The dollar was offered for as much as 255,300 rials, up from 242,500 on Friday, according to foreign exchange site Bonbast.com. The economic daily Donya-e-Eqtesad’s website gave the dollar rate as 252,300, compared with 241,300 on Friday.
The currency has lost nearly 48% of its value in 2020, more than half of that in the past month, as a drop in oil prices and a slump in the global economy have deepened the economic crisis in the country, which also has the highest death toll in the Middle East from the pandemic.
The official exchange rate - used mostly for imports of state-subsidised food and medicine - is 42,000 rials per dollar.
The Iranian rial fell to a new low against the U.S. dollar on the unofficial market on Saturday and has now seen its value fall by almost half in 2020 as the economy comes under pressure from the coronavirus pandemic and U.S. sanctions.
The dollar was offered for as much as 255,300 rials, up from 242,500 on Friday, according to foreign exchange site Bonbast.com. The economic daily Donya-e-Eqtesad’s website gave the dollar rate as 252,300, compared with 241,300 on Friday.
The currency has lost nearly 48% of its value in 2020, more than half of that in the past month, as a drop in oil prices and a slump in the global economy have deepened the economic crisis in the country, which also has the highest death toll in the Middle East from the pandemic.
The official exchange rate - used mostly for imports of state-subsidised food and medicine - is 42,000 rials per dollar.
S&P revises #Kuwait's outlook to negative on depletion in liquidity buffer | ZAWYA MENA Edition
S&P revises Kuwait's outlook to negative on depletion in liquidity buffer | ZAWYA MENA Edition:
S&P Global Ratings on Friday revised Kuwait's outlook to 'negative' from 'stable', saying it expects that the country's main liquidity buffer, the General Reserve Fund, will be insufficient to cover central government deficit.
"The GRF balance has been steadily reducing over the past three years, but this process has accelerated in recent months following the decline in oil prices and Kuwait's implementation of the OPEC+ oil production cut agreement," the ratings agency said in a statement.
Kuwait has been drawing down its GRF to plug the deficit, which the International Monetary Fund estimates could reach more than 11% of gross domestic product this year, compared with a 4.8% surplus last year.
The ratings agency expects Kuwait's central government deficit to be almost 40% of GDP in fiscal 2020, up from an estimated 10% a year ago, estimating that the GRF alone will be unable to fund a deficit of that magnitude.
S&P Global Ratings on Friday revised Kuwait's outlook to 'negative' from 'stable', saying it expects that the country's main liquidity buffer, the General Reserve Fund, will be insufficient to cover central government deficit.
"The GRF balance has been steadily reducing over the past three years, but this process has accelerated in recent months following the decline in oil prices and Kuwait's implementation of the OPEC+ oil production cut agreement," the ratings agency said in a statement.
Kuwait has been drawing down its GRF to plug the deficit, which the International Monetary Fund estimates could reach more than 11% of gross domestic product this year, compared with a 4.8% surplus last year.
The ratings agency expects Kuwait's central government deficit to be almost 40% of GDP in fiscal 2020, up from an estimated 10% a year ago, estimating that the GRF alone will be unable to fund a deficit of that magnitude.
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