Higher US Federal Reserve rates to combat inflation have pushed global stock markets into retreat. In comparison with the last rapid Fed rate hiking cycle in 2004-2006, many African economies are now much more integrated with the global financial cycle, primarily through eurobond issuance, says Mark Bohlund, senior credit research analyst at REDD Intelligence in London. That makes them more vulnerable to higher US rates and a stronger dollar, he says.
The economic impact will be felt across the continent, with a number of countries seeking support from the IMF and World Bank in the coming months.
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