BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Banks anticipate recession in Canada in 2020

The Royal Bank expects Canada to fall into recession later this year, with the economy suffering from the aftermath of COVID-19 as well as falling oil prices. The financial institution expects GDP growth of 0.8% in the first quarter. The economy should then contract over the next two quarters. On an annualized basis, the bank anticipates a drop in GDP of around 2.5% in the second quarter and 0.8% in the third quarter.
Banks anticipate recession in Canada in 2020

Its forecasts take into account the repercussions caused by the spread of the new coronavirus by the end of the first half. A recovery will be hampered by the depression in crude prices. In fact, Canada's oil and natural gas producers continued to cut their capital spending and investor payments in the wake of this week's plunge in oil prices.

Friday was the turn of ARC Resources, based in Calgary, to announce that it would cut its spending budget for 2020 from 500 million to 300 million at most, and that it would reduce its monthly dividend of 5 ¢ to 2 ¢. Late Thursday, Husky Energy announced that it would reduce capital spending this year by $ 900 million to about $ 2.4 billion, and said it would seek additional $ 100 million through capital measures. cost reductions.

The cuts come at a time when the coronavirus epidemic is eroding global demand for energy, and when a price war between major producers in Saudi Arabia and Russia threatens to flood the oil market with cheap barrels .

The economy, however, should recover in the last three months of the year, according to the Royale.

CIBC echoed Royale's comments in its own report, also arguing that Canada is probably on the brink of a recession. "We expect production to drop in the second and third quarters in the United States and Canada," she said.

Add to this the effects of the rail blockade. The Parliamentary Budget Officer (PBO) released his estimate of the economic and financial impact of the disruption in February 2020 on Friday. According to the PBO, rail disruptions will cost the Canadian economy $ 275 million in 2020, or 0, 01% of GDP, the effect of these disturbances being especially felt in the first quarter.

"Almost all of the losses related to the interruption of activity in the rail sector should be recovered by May, but the economy will still be subject to modest costs due to passenger movements and canceled port activities "Said Yves Giroux.

In more detail, the blockade caused a drop in business revenues of 130 million and affected almost 800 jobs in 2020. In its calculations, the PBO took into account the direct repercussions of the disruptions on rail transport, port activity and urban transport. It also considered indirect impacts, including consequences for other industries, based on the links between these industries and the transportation sector. Finally, PBO's estimate includes the effects on other sectors of the economy.