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[1/2] International Monetary Fund Managing Director Kristalina Georgieva addresses the media on the fourth day of the annual meeting of the IMF and the World Bank, in Marrakech, Morocco, October 12, 2023. "So that is to my mind the number one priority for this COP, is to recognise that business as usual has to be dropped." Several countries were also considering using their 2021 SDR allocation on a bilateral basis alongside IMF programmes, she added. While the current average price was now around $5 a ton, "clearly there is a long, long, long way to go", she said, citing a preference for carbon taxes but openness to trading systems, as seen in Europe, or U.S.-style standards and rebates. This is ongoing work at the fund," she said, citing ongoing talks with the World Bank on how it would work.

Persons: Kristalina Georgieva, Susana Vera, Georgieva, it's, Andrea Shalal, Marc Jones, David Lawder, Alex Richardson Organizations: Monetary Fund, IMF, World Bank, REUTERS, International Monetary Fund, Reuters, Growth Trust, Sustainability Trust, African Development Bank, Inter, American Development Bank, Thomson Locations: Marrakech, Morocco, Dubai, Paris, Europe

☆ Exclusive: Argentina to use IMF money to pay back part of a currency swap with China -sources
▼ + stars: | 2023-08-23 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +3 min

[1/2] The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. The cash-strapped economy has used money from the Chinese swap line to pay for imports as well as repay IMF debt. The swap line that the PBOC signed in 2009 with Buenos Aires was the first agreed with a Latin American country. Neither China nor Argentina have released much detail of the swap arrangement or any borrowing under it, so little is known about the currency line signed more than a decade ago. "The funds that will be disbursed today go in part to Qatar, to CAF and will lower the level of how much has been used from the swap line.

Persons: Yuri Gripas, PBOC, Jorgelina, Jorge Otaola, Karin Strohecker, Sandra Maler Organizations: Monetary Fund, REUTERS, International Monetary Fund, People's Bank of China, Fund, Buenos Aires, Development Bank of Latin, CAF, Qatar, Thomson Locations: Washington , U.S, Argentina, China, Buenos Aires, Buenos, American, Development Bank of Latin America, Qatar, SDRs, U.S, Rosario

☆ World Bank’s green overhaul is slowly taking shape
▼ + stars: | 2023-08-21 | by ( Rebecca Christie | ) www.reuters.com time to read: +7 min

BRUSSELS, Aug 21 (Reuters Breakingviews) - To step up the fight against climate change, World Bank President Ajay Banga wants to overhaul the lender’s balance sheet without overturning its credit rating. Earlier this year, the World Bank pledged $50 billion over 10 years via changes to how it manages its equity to loan ratio. Such backing has been used before, for example by the UK to fund $1 billion of World Bank projects in India. The central banks would hold those bonds as liquid reserves, while the World Bank could use the SDRs for financing its operations. All of these options are more complicated than if the World Bank’s shareholders simply increased its paid-in capital outright.

Persons: Ajay Banga, Janet Yellen, Lawrence Summers, N.K, Singh, Joe Biden, Yellen, ”, Guarantors, Brad Setser, Stephen Paduano, George Hay, Francesco Guerrera, Streisand Neto Organizations: Reuters, World, Treasury, World Bank, Reuters Graphics, Mastercard, Citigroup, AAA, U.S, Bank, London School of Economics, International Monetary Fund, European Union, U.S ., Thomson Locations: BRUSSELS, U.S, Asia, Banga, India, Japan, China, European, Marrakech, Singh

☆ Argentina agrees $775 million loan with Qatar to make IMF repayment
▼ + stars: | 2023-08-04 | by ( ) www.reuters.com time to read: +1 min

The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File PhotoAug 4 (Reuters) - Argentina's government on Friday agreed with Qatar a $775 million loan to use to make an International Monetary Fund (IMF) repayment due this Friday. Argentina is grappling with a severe economic crisis with sky-high inflation and falling central bank reserves and is facing IMF repayments. The country's Economy Minister Sergio Massa said on Monday Argentina would not use "a single dollar of its own reserves" to make the IMF repayment. The Qatar loan will have the IMF's variable interest rate applicable to SDRs (IMF currency), which is currently 4.033% per annum, a presidential decree said.

Persons: Yuri Gripas, Sergio Massa, Massa, Nicolas Misculin, Natalia Siniawski, Jason Neely, Jane Merriman Organizations: Monetary Fund, REUTERS, Qatar, Argentina, IMF, CAF, Thomson Locations: Washington , U.S, Argentina, Qatar, China

☆ Exclusive: Argentina, IMF staff-level agreement set to combine reviews on $44 billion loan, sources say
▼ + stars: | 2023-07-28 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +3 min

Combining the two reviews would give Argentina access to 5.5 billion of IMF's special-drawing rights (SDRs), equivalent to about $7.3 billion. An IMF spokesperson said: "Discussions between the teams continue to be very constructive" and "are aimed at reaching staff level agreement." Once a Staff Level Agreement is reached, this is presented to the IMF executive board and if it is signed off, this will trigger the release of cash. LONG AWAITED DEALBoth sides have recently said that a Staff Level Agreement was close. Facing a recession and triple-digit inflation, Argentina is scheduled to have four reviews between December and September 2024 on its IMF programme.

Persons: didn't, LONG, disbursements, Jorgelina, Karin Strohecker, Jane Merriman Organizations: International Monetary, IMF, Argentine, Thomson Locations: Argentina, Buenos Aires, Uganda, Nepal, Pakistan, Beijing, Rosario

THE REVIEWUnder the terms of the $44 billion program agreed in 2022, the funds are released in tranches based on regular reviews of steps Argentina takes to shore up its economy. The IMF did not respond to a request for comment on the likelihood of a board meeting soon to discuss the Argentina program. Argentina made the last IMF payment due end-June partially with its holdings of IMF special-drawing rights (SDRs), but analysts calculated that this has wiped out the country's $1.65 billion in IMF reserve assets. Argentina used $1.1 billion in yuan from a recently extended and expanded swap line with China to complete the June payment to the IMF. Reuters GraphicsFALLING INTO ARREARSMissing payments would automatically put Argentina in default with the IMF because there is no grace period with the multilateral lender.

Persons: Goldman Sachs, Sergio Massa, Gordian Kemen, Kemen, Gross, Jorgelina, Rosario, Rodrigo Campos, Karin Strohecker, Tomasz Janowski Organizations: International Monetary Fund, IMF, Standard Chartered Bank, Reuters, Thomson Locations: Argentina, Buenos Aires, Beijing, China

If it cannot secure fresh funds before an approaching deadline, Argentina risks defaulting on repayments to the IMF. Analysts say the central aim of these economic adjustments is to signal to the IMF that Buenos Aires is committed to the program. The left-wing administration has been locked in negotiations with the IMF for months over whether to front-load tranches of the $44 billion program. Both parties said on Sunday that an agreement on the fifth IMF review was close, but not yet finalized. Reporting by Lucinda Elliott in Montevideo, Anna-Catherine Brigida in Buenos Aires, Rodrigo Campos in New York.

Persons: Sergio Massa, Eduardo Levy Yeyati, Eyeing, Marina dal, EcoGo, Alejo Czerwonko, Yeyati, Lucinda Elliott, Catherine Brigida, Rodrigo Campos, Jorgelina de, Karin Strohecker, Catherine Evans Organizations: International Monetary Fund, Economy, Peronist, IMF, Reuters, Emerging, UBS, Analysts, Thomson Locations: BUENOS AIRES, Buenos Aires, Argentina, refinance, Washington, Beijing, Montevideo, Anna, New York, Jorgelina de Rosario, London

☆ Argentina delegation set to travel to US next week for IMF talks
▼ + stars: | 2023-07-07 | by ( Jorge Otaola | ) www.reuters.com time to read: +2 min

[1/2] A person walks by the Ministry of Economy building in Buenos Aires’ financial district, Argentina, July 4, 2022. REUTERS/Agustin Marcarian/File PhotoBUENOS AIRES, July 7 (Reuters) - The Argentine government will send a delegation next week to Washington in a bid to finalize the renegotiation of its $44 billion loan with the International Monetary Fund (IMF), a source involved in the talks told Reuters on Friday. The delegation had initially planned to travel as early as June. "The negotiation is fine, next week our team will be there (in Washington) all week. The government also this week postponed its $2.6 billion loan repayments for July until the end of the month, which include $1.3 billion that were due Friday.

Persons: Agustin Marcarian, Jorge Otaola, Rodrigo Campos, Eliana Raszewski, David Gregorio, Rosalba O'Brien Organizations: Ministry, REUTERS, International Monetary Fund, Reuters, Grupo SBS, ., Thomson Locations: Buenos Aires, Argentina, BUENOS AIRES, Argentine, Washington, America, New York

☆ Argentina makes IMF payment as deal talks grind on
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +1 min

June 30 (Reuters) - The International Monetary Fund said on Friday that Argentina is current in its payment obligations, and the government said it made a $2.7 billion payment to the fund using its existing stock of the IMF's reserve assets, and Chinese currency. The operation, which depleted Argentina's $1.6 billion in SDRs, underscores how desperate the country's dollar position has become. The IMF did not respond to requests for comment on the payment method. Both parties are locked in talks to speed up disbursements from their $44 billion program and ease economic targets, as a major drought continues to hammer vital grains exports. Argentina's economy ministry said a team will travel to Washington early next week to continue negotiations.

Persons: Brendan O'Boyle, Rodrigo Campos, Chizu Organizations: Monetary Fund, IMF, Reuters, Argentine, Thomson Locations: Argentina, Washington, Carolina

☆ France's Macron says leaders finalised accord on $100 bln in climate finance
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +2 min

Emmanuel Dunand/Pool via REUTERSPARIS, June 23 (Reuters) - Wealthy nations finalised an overdue $100-billion climate finance pledge to developing countries on Friday and created a fund for biodiversity and the protection of forests, France's president said. The $100 billion falls far short of poor nations' actual needs, but has become symbolic of wealthy countries' failure to deliver promised climate funds. This has fuelled mistrust in climate negotiations between countries attempting to boost CO2-cutting measures. Of the $100 billion in SDRs to be rechannelled, Washington has yet to pass legislation to release its share, worth more than one fifth of the total. U.S. Treasury Secretary Janet Yellen said that it was a priority for the Biden administration to get approval in Congress.

Persons: Emmanuel Macron, Emmanuel Dunand, Macron, Janet Yellen, Biden, Leigh Thomas, John Irish, Toby Chopra Organizations: Alliance, Entrepreneurship, New Global Financial, Palais, REUTERS, World Bank, United Nations, Bank, International Monetary Fund, U.S, Treasury, Thomson Locations: Paris, France, REUTERS PARIS, Africa, Washington

☆ Creative green finance can go a long way in 2023
▼ + stars: | 2023-01-23 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

PARIS, Jan 23 (Reuters Breakingviews) - Rich democracies are increasingly keen to help the Global South fight climate change. Though they will struggle to write big cheques, there are ways to make a little cash go a long way. The good news is rich countries have ways to get money flowing without dipping much into their own pockets. One plan is for multilateral development banks (MDBs) to use their balance sheets more aggressively to fight climate change. Rich countries should therefore put more capital into those MDBs that show the most enthusiasm for the task.

☆ Japan spent record $42.8 bln in October interventions to prop up yen
▼ + stars: | 2022-10-31 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

The 6.3499 trillion yen ($42.8 billion) was broadly in line with the estimates of Tokyo money market brokers who thought Japan had likely spent up to 6.4 trillion yen over two consecutive trading days of unannounced interventions. A steep drop in the yen to a 32-year low of 151.94 to the dollar on Oct. 21 likely triggered the intervention, followed by another one on Oct. 24. However, the amount was nearly double the 2.8 trillion yen Tokyo spent last month in its first yen-buying and dollar-selling intervention in more than two decades. The interventions helped to trigger an immediate drop in the dollar of more than 7 yen on Oct. 21, and another dollar fall to the yen by around 5 yen on Oct. 24 albeit temporarily. "This suggested that the Japanese authorities will continue to attack market players selling off the yen beyond 150 yen."

☆ Japan likely spent record amount in October to prop up yen
▼ + stars: | 2022-10-31 | by ( Tetsushi Kajimoto | Wayne Cole | ) www.reuters.com time to read: +3 min

A compilation of estimates by Tokyo money market brokers indicates that Japan likely spent a record 5.4 trillion yen ($24.9 billion) over two consecutive trading days of unannounced intervention on Oct. 21 and 24, in reaction to a steep drop in the yen to a 32-year low of 151.94 to the dollar on Oct. 21. That would be nearly double the 2.8 trillion yen Tokyo spent last month in its first yen-buying and dollar-selling intervention in more than two decades. The latest intervention helped to trigger an immediate drop in the dollar of more than 7 yen, but the Japanese currency has since come under renewed pressure. The Ministry of Finance will announce on Monday at 7 p.m. (1000 GMT) the total amount spent for intervention from Sept. 29 to Oct. 27. Indeed, Japan's top currency diplomat, Masato Kanda, has said there was no limit to the authorities' resources for conducting intervention.

☆ Yellen says new IMF SDR allocation not appropriate at this time
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Oct 14 (Reuters) - U.S. Treasury Secretary Janet Yellen said that she does not see another allocation of International Monetary Fund Special Drawing Rights reserves to member countries as appropriate at this time, when more existing reserves need to be channeled to poorer countries. Yellen told a news conference that the Treasury has asked the U.S. Congress for permission to lend $21 billion in U.S. SDRs to IMF trust funds for low- and middle-income countries, and was hoping for approval. Register now for FREE unlimited access to Reuters.com RegisterReporting by David Lawder; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ French development minister backs World Bank reforms, calls for U.S. SDR loans
▼ + stars: | 2022-10-14 | by ( David Lawder | ) www.reuters.com time to read: +3 min

Last week, Yellen called on the World Bank and other multilateral development lenders to revamp their business models, stretch their balance sheets and harness more private capital to dramatically boost lending to address global needs such as climate change. Register now for FREE unlimited access to Reuters.com RegisterYellen asked for an "evolution roadmap" from the World Bank by the end of December. Zacharopoulou, who is attending the International Monetary Fund and World Bank annual meetings in Washington this week, said France was ready to help with the reforms. Despite strong support for increasing resources to war-torn Ukraine at the IMF and World Bank meetings, Zacharopoulou said that countries also needed to keep up a strong focus on supporting other developing countries. The United States has not contributed any of its $101.5 billion share of the SDR allocation to the trust funds, a move that would require approval from Congress.

At the International Monetary Fund's last count in the first quarter of this year, almost 5% of the world's foreign currency reserves were denominated in sterling - a total of $625 billion dollars worth of sterling and sterling assets on a crude calculation from the $12.55 trillion total. The UK has a reserve currency so it can always issue debt – it's just a question of the right price." But what if that reserve currency position is threatened and foreign central banks balk at holding so much sterling in their national savings stashes? Seven of the world's top 10 reserve holding central banks are in Asia or the Middle East. UBS chart on its 2022 survey of world reserve managersThe opinions expressed here are those of the author, a columnist for Reuters.

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