By Amadou Sy
African economies began tapping into overseas markets for funding in the early 2000s, after debt burdens had been alleviated by the Highly Indebted Poor Countries (HIPC) Initiative.
However, surging interest rates on dollar- and euro-denominated loans in recent years have prompted countries to turn to domestic markets for their borrowing needs.
Amadou Sy heads the IMF regional studies division. In this podcast, he says there are benefits to issuing debt in local markets and in local currency.
Read the article in the IMF’s Finance & Development magazine.