Kingdom of Lesotho: Selected Issues
Author: International Monetary
Publisher: International Monetary Fund
Published: 2022-06-07
Total Pages: 91
ISBN-13:
DOWNLOAD EBOOK →Kingdom of Lesotho: Selected Issues
Author: International Monetary
Publisher: International Monetary Fund
Published: 2022-06-07
Total Pages: 91
ISBN-13:
DOWNLOAD EBOOK →Kingdom of Lesotho: Selected Issues
Author: International Monetary Fund. African Dept.
Publisher: International Monetary Fund
Published: 2018-03-05
Total Pages: 13
ISBN-13: 1484344944
DOWNLOAD EBOOK →This Selected Issues paper provides further background on the macrofinancial sector analysis that informed Lesotho’s 2017 Article IV consultation. Lesotho’s financial sector is small, concentrated, and lacks financial inclusion, although mobile banking services and financial cooperatives offer some encouraging potential. Lesotho’s most important vulnerabilities are exposure to developments in South Africa and dependence on revenues from the Southern African Customs Union (SACU). Shocks to SACU revenues can become a source of systemic risk by affecting the fiscal position and the balance of payments. The financial system will be affected by both channels, with substantial implications if the shock is permanent. This paper focuses on two potential consequences of a severe SACU revenue shock for the financial system: A decline in reserves that may threaten the sustainability of the hard currency peg with the South African rand, and the impact of a forced fiscal consolidation on household income and the quality of credit to households, affecting both bank and nonbank lenders. It turns out that financial shallowness and lack of inclusion may be a defining feature of the formal banking system; thereby raising questions about potential trade-offs between inclusiveness and financial stability.
Author: International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Published: 2005-12-28
Total Pages: 75
ISBN-13: 9781451823837
DOWNLOAD EBOOK →This Selected Issues paper on the Kingdom of Lesotho reviews the broad objectives and key institutional features of the Common Monetary Area (CMA) relating to currency arrangements. The CMA Agreement provides for the three small member countries to have access to South African capital and money markets, but only through prescribed investments or approved securities that can be held by financial institutions in South Africa. Lesotho's exchange rate arrangement under the CMA shares certain characteristics of a currency board.
Author: International Monetary Fund. African Dept.
Publisher: International Monetary Fund
Published: 2023-07-20
Total Pages: 43
ISBN-13:
DOWNLOAD EBOOK →Kingdom of Lesotho: Selected Issues
Author: Mr. Yibin Mu
Publisher: International Monetary Fund
Published: 2022-12-06
Total Pages: 16
ISBN-13:
DOWNLOAD EBOOK →Lesotho’s fiscal situation is challenging. This paper assesses the pressure points of main components of revenues, current spending, and capital spending, and then proposes a growth-friendly consolidation plan while protecting the vulnerable.
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2021-10-08
Total Pages: 133
ISBN-13: 1513594818
DOWNLOAD EBOOK →The paper provides brief updates for each CCRT-eligible country on its policy responses to the pandemic and on staff’s assessments of these policies, the use of resources freed up by debt service relief, and the implementation of governance safeguards commitments. The paper also provides an update on the financial situation of the CCRT. The generous support from 17 donor countries and the EU has mobilized SDR 609 million in new pledges since the onset of the pandemic.
Author: Encyclopaedia Britannica, Inc.
Publisher: Encyclopaedia Britannica, Inc.
Published: 2012-03-01
Total Pages: 882
ISBN-13: 1615356185
DOWNLOAD EBOOK →The Britannica Book of the Year 2012 provides a valuable viewpoint of the people and events that shaped the year and serves as a great reference source for the latest news on the ever changing populations, governments, and economies throughout the world. It is an accurate and comprehensive reference that you will reach for again and again.
Author: International Monetary Fund. African Dept.
Publisher: International Monetary Fund
Published: 2018-03-05
Total Pages: 13
ISBN-13: 1484344952
DOWNLOAD EBOOK →This Selected Issues paper provides further background on the macrofinancial sector analysis that informed Lesotho’s 2017 Article IV consultation. Lesotho’s financial sector is small, concentrated, and lacks financial inclusion, although mobile banking services and financial cooperatives offer some encouraging potential. Lesotho’s most important vulnerabilities are exposure to developments in South Africa and dependence on revenues from the Southern African Customs Union (SACU). Shocks to SACU revenues can become a source of systemic risk by affecting the fiscal position and the balance of payments. The financial system will be affected by both channels, with substantial implications if the shock is permanent. This paper focuses on two potential consequences of a severe SACU revenue shock for the financial system: A decline in reserves that may threaten the sustainability of the hard currency peg with the South African rand, and the impact of a forced fiscal consolidation on household income and the quality of credit to households, affecting both bank and nonbank lenders. It turns out that financial shallowness and lack of inclusion may be a defining feature of the formal banking system; thereby raising questions about potential trade-offs between inclusiveness and financial stability.
Author: Mr. Yibin Mu
Publisher: International Monetary Fund
Published: 2022-12-06
Total Pages: 23
ISBN-13:
DOWNLOAD EBOOK →A key challenge for Lesotho is the downward rigidity in public expenditure—which increases when SACU transfers are buoyant but fails to be pared back when they fall. Fiscal rules would be of value in Lesotho to help provide constraints on spending and resist political pressure to overspend, while embedding fiscal responsibility within the country’s macro-fiscal framework and ensuring debt sustainability. This paper evaluates options for fiscal rules for Lesotho, discusses the institutional framework required to help underpin a sound fiscal-rule framework, posits a possible fiscal-rule framework for Lesotho, and offers a roadmap to introduce the framework.