Investing in Currencies

Ethiopia reached an agreement with bilateral creditors on an interim debt-service suspension in mid-November, and has indicated it will begin talks on the restructuring of a $1bn eurobond that matures in 2024. But what impact will this have on the Ethiopian economy in the immediate future?Since applying for treatment under the Common Framework in early 2021, Ethiopia remained current on its external debt obligations. However, Ethiopia has faced payments pressures recently, compounded by recent and successive global and domestic shocks. The agreed interim debt service suspension will provide a structured mechanism...

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Investors are selling dollars at the fastest rate in a year as they raise their bets that the US Federal Reserve has finished its aggressive campaign of interest rate increases and will deliver multiple cuts next year.Asset managers are on track to sell 1.6 per cent of their open dollar positions this month, the largest monthly outflow since last November, according to State Street, which is custodian to $40tn of assets. Managers...