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China Central Bank Injects $83 Billion Into Economy

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China: Central Bank Injects $83 Billion Into Economy

China’s central bank has on Wednesday injected a record $83 billion into the country’s financial system in order to avert a cash crunch that could destabilise the country’s economy.

The country’s weakening economy has made policymakers to step up stimulus measures in protecting jobs,

But a raft of measures last year from big rail projects to tax cuts seem to have had little impact so far, with recent data suggesting activity is cooling more quickly than expected.

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A senior economist in Hong Kong, Trinh Nguyen said, it is very obvious the economy of China needs help and so many authorities agreed to that.

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Wednesday’s injection was aimed at ensuring there are ample funds in the financial system, which is facing strains as tax payments peak in mid-January, and as demand for cash picks up ahead of the Lunar New Year holidays starting in early February, People’s Bank of China (PBOC) said.

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The injection which is the bank’s largest net single-day injection came a day after China’s state planner, central bank and finance ministry all offered reassurances to investors, signaling more spending and other types of policy support.

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Covid-19 Pandemic: World Trade To Fall By Up To 32% In 2020 – WTO

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Economists Say Coronavirus Will Slam African Economies

World trade is expected to fall by between 13 and 32 percent this year as the covid-19 pandemic disrupts normal economic activity and life around the world.

The World Trade Organization has said in its annual trade statistics and outlook report that that the decline would likely exceed the trade slump brought on by the global financial crisis of 2008.

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The report’s estimates of the expected recovery in 2021 are equally uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness of the policy responses.

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WTO director-general, Roberto Azevedo says “the immediate goal is to bring the pandemic under control and mitigate the economic damage to people, companies and countries.  He recommends policymakers begin planning for the aftermath of the pandemic.

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Azevedo said a rapid and vigorous rebound is possible if countries work together rather than if each country acts alone.

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Zimbabwe Reintroduces Use Of Foreign Currencies

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Zimbabwe To Introduce New Currency In Two Weeks

Zimbabwe has reintroduced the use of foreign currencies for domestic transactions, in the wake of the coronavirus outbreak. The country had banned foreign notes in June last year.

Authorities announced the move on Thursday saying it is expected to help the country access private foreign exchange savings as it gears up for the battle against coronavirus.

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The country’s central bank has also reduced its main lending rate to 25% and set a fixed exchange rate as part of measures to support the economy against the pandemic.

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Central Bank Governor John Mangudya said he expected banks to cut lending rates to customers.

Zimbabwe had used a number of foreign currencies since hyperinflation forced the government to ditch the Zimbabwe dollar in 2009. Last year’s ban on foreign currencies was intended to restore normalcy to the economy.

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Officially, Zimbabwe has so far recorded five cases of coronavirus, including one death.

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Hit By Power Shortages, South Africa’s Economy In Recession

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Hit By Power Shortages, South Africa's Economy In Recession South Africa has plunged into recession and widespread power cuts are being blamed for it. Official statistics released on Tuesday shows South Africa’s economy, the continent’s most industrialized, falling into a decline. Its economy shrank by 1.4% in the fourth quarter of 2019 from the previous three-month period. South Africa’s nationwide power blackouts are blamed for the larger than expected decline in the fourth quarter. State-owned power utility, Eskom, has been unable to meet demand and has had to implement rotating cuts in electricity to residences, factories, mines and businesses. A recession is commonly defined as two consecutive quarters of economic decline. South Africa’s economic growth forecast for 2020 has been cut to just under one percent.

South Africa has plunged into recession and widespread power cuts are being blamed for it. Official statistics released on Tuesday shows South Africa’s economy, the continent’s most industrialized, falling into a decline.  Its economy shrank by 1.4% in the fourth quarter of 2019 from the previous three-month period.

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South Africa’s nationwide power blackouts are blamed for the larger than expected decline in the fourth quarter. State-owned power utility, Eskom, has been unable to meet demand and has had to implement rotating cuts in electricity to residences, factories, mines and businesses.

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A recession is commonly defined as two consecutive quarters of economic decline.

South Africa’s economic growth forecast for 2020 has been cut to just under one percent.

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