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By Matthew Russell Lee, Patreon
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NY / SDNY COURT, April 15 – Before the International Monetary Fund's February 13 embargoed briefing, Inner City Press asked the IMF to confirm or deny something in the crypto-currency media, that "IMF ADVISES EASTERN CARIBBEAN STATES TO TRIAL DIGITAL CURRENCY." See below.

 Now on April 15 amid the Coronavirus crisis to the IMF and World Bank's Annual Meetings Inner City Press posed this question: "On Morocco, IMF has said 'Morocco is likely to experience a recession in 2020' - what is the percentage, as you've been giving for other countries in the region?"
 
  IMF Senior Communications Officer Wafa Amr read the question, "From Matthew Lee, on Morocco, what is the percentage, as you've been giving for other countries in the region?"

   The IMF's Jihad Azour, Middle East and Central Asia Department Director, then put the figure at over three percentage negative. But he said that the recent purchase of all funds under the PLL should help.

    "On April 7, the Moroccan authorities purchased all available resources (about US$ 3 billion) under the Precautionary and Liquidity Line (PLL) arrangement. The authorities will use funds purchased under the PLL to cope with the social and economic impact of COVID-19 and to maintain strong external buffers in a context of heightened uncertainties. The IMF remains closely engaged with the authorities to help them mitigate the impact of COVID-19 on Morocco’s economy. Washington, DC – The Moroccan authorities today drew on all resources available under the current Precautionary and Liquidity Line (PLL) arrangement in the amount of SDR 2.15 billion (about US$3 billion or 240 percent of quota and about 3 percent of GDP). This purchase will help the authorities limit the social and economic impact of the COVID-19 pandemic and allow Morocco to maintain an adequate level of official reserves to mitigate pressures on the balance of payments.  Since 2012, Morocco has benefited from four successive PLL arrangements with the IMF. The PLL instrument is precautionary and designed to meet the liquidity needs of member countries with sound economic fundamentals but with some remaining vulnerabilities. It provides rapid access to Fund resources in the event of external shocks or a worsening global environment.  This is the first time the authorities draw on funds available under the PLL, to cope with the unprecedented shock of the COVID-19 pandemic, including both its domestic impact and spillovers from a global recession. Despite a range of measures taken by the authorities to increase health spending and support businesses and households, Morocco is likely to experience a recession in 2020 due to sizable declines in exports, tourism and remittances and a temporary freeze in economic activity. While the current account deficit will widen and capital inflows should decline in 2020, Morocco is expected to maintain an adequate level of official reserves following the PLL purchase.  The IMF will remain closely engaged with Morocco as the authorities address the impact of the pandemic."

  Again, the issues of Western Sahara was perhaps understandably in this Annual Meeting forum not addressed, nor have a few others of Inner City Press pending question been answered. But we remain hopeful.

Inner City Press covers not only the IMF but also all things crypto in the U.S. District Court for the Southern District of New York, for example SEC v. Telegram and the prosecution of Virgil Griffith formerly of Ethereum.   Inner City Press asked the IMF, "It is reported that to the Eastern Caribbean Currency Union, the IMF suggests to experiment with a common digital currency, on a blockchain. Can you elaborate?"  

 While IMF spokesperson Gerry Rice during the briefing answered Inner City Press' Somalia and Egypt questions, it was afterward that this answer arrived by e-mail, "attributable to Gerry Rice, IMF Spokesman and Director of Communications:    

'The IMF did not suggest to experiment with a common digital currency. In March 2019, the Eastern Caribbean Central Bank (ECCB) launched a central bank digital currency pilot project, using blockchain technology, on its own initiative.

  As noted in the IMF Concluding Statement of the 2019 discussion on the common policies of the Eastern Caribbean Currency Union (ECCU) member countries, the digital currency could expose the ECCB and the financial system to various risks, including for financial intermediation, financial integrity, and cybersecurity. Given these risks of the digital currency, the IMF stressed that the ongoing pilot project should proceed cautiously.”   

So there. (A OneCoin / Bulgaria question remains outstanding). We appreciate the IMF's answer. Watch this site, for IMF news and... all things crypto, good, bad and ugly.

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