Nigerian government spending proposals for 2021, floated this week, signal just how much of a bind the authorities are in. Letting the naira weaken would be one way to address the large budget deficit, but policymakers are likely to remain reluctant to go down this path. Elsewhere, several of South Africa’s largest banks have, unsurprisingly, announced sharp falls in profits as the effects of the coronavirus crisis have rippled across the economy and bad loans have risen. More pain probably lies in store.
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