The turmoil in the global banking sector could put currencies in North Africa under pressure if strains intensify and capital inflows dry up, which could hasten a sovereign default in Tunisia. For the Gulf economies, the fallout has already pushed down oil prices and, if this persists, it could slam the door shut on possible fiscal loosening and weigh on GDP growth prospects.
Drop-In (Today at 11:00 ET/15:00 GMT): Join this post-ECB briefing on how central banks will balance financial stability concerns following recent banking sector turmoil with the need to contain inflation. Register Now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services