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Ripples of global banking turmoil in Sub-Saharan Africa

Strains in the global banking system have roiled financial markets, but in Sub-Saharan Africa the main impact of the turmoil is likely to feed through via lower commodity prices and tighter external financing conditions, resulting in weaker domestic demand. If balance of payments strains intensify, policymakers in many parts of the region would have to extend or resume their monetary tightening cycles.

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