Senegal’s dollar bonds are experiencing a decline after the IMF warned of fiscal deterioration.
The yield on Senegal’s 2048 bonds increased due to concerns about the country’s rising fiscal deficit, which has been aggravated by reduced revenues and rising energy subsidies.
The IMF’s report urged Senegal to implement reforms to stabilize its finances.
This decline is happening in the context of political uncertainty, as President Bassirou Diomaye Faye recently dissolved the opposition-led parliament to push forward his reforms and has scheduled new elections for November.
Achieving a legislative majority is crucial for Faye to implement his economic agenda, which includes tackling corruption and renegotiating energy contracts.
However, the IMF’s warning points to risks if fiscal imbalances are not addressed.
