2025-06-25 10:13
Argentina agreed new $20 billion program with IMF this year IMF team in Argentina this week for first program review Country seen behind on FX reserves build-up target Argentina will likely get IMF waiver, say analysts, ex-officials BUENOS AIRES, June 25 (Reuters) - Argentina, the International Monetary Fund's long-term problem child and biggest debtor, once again needs to seek forgiveness: this time for falling short on foreign currency reserve build-up targets linked to a new $20 billion deal. The South American country is likely to get it, too, analysts and former officials said. Sign up here. Argentina struck its latest deal - its 23rd - with the Washington-based lender in April, needed to help roll over an earlier $44 billion deal and give the government of libertarian Javier Milei financial firepower to undo capital controls. The front-loaded deal came with economic targets attached to unlock further funds, including on inflation and rebuilding depleted central bank foreign currency reserves, that were deep in the red when Milei took office in late 2023. Milei has tempered inflation with tough austerity and guided the country out of a recession, but accumulating dollars has proven tough, leaving levels short of those demanded by the IMF. However, former government and IMF officials said that Milei had done enough to gain some leeway, with his cost-cutting having overturned years of deep fiscal deficits, winning over markets and gaining plaudits from IMF leaders. "I think they will forgive them even if they (the IMF) then ask for more later," Claudio Loser, former IMF director for the Western Hemisphere, told Reuters. That would likely come in the form of a waiver, approving the first program review despite missed targets on reserves. An IMF team arrived in Argentina on Tuesday for that review. Daniel Marx, former Argentine finance secretary from 1999 to 2001, told Reuters that the next disbursement - some $2 billion - would require the IMF to give special dispensation. "Most likely, the disbursement won't be automatic, but it will require a waiver," he said. "It was thought that the central bank would have intervened by accumulating reserves. This hasn't happened, at least until now." The Ministry of Economy and presidency did not respond to a request for comment. The central bank declined to comment and said talks with the IMF technical team were just starting. The IMF pointed to a statement about its team arriving in Argentina. Key to the waiver is Milei's strong record on the fiscal surplus with his tough "deficit zero" drive. Last week the government said it would deepen cost cutting in order to hit a surplus target of 1.6% of GDP. Minister of Economy Luis Caputo said earlier this month reserves accumulation was no longer as important as before with a freer float for the peso currency and the central bank better financed. He flagged IMF backing for Milei's reforms. Aldo Abram, director of the Fundación Libertad y Progreso in Buenos Aires, estimated that the country might be $500 million to $1 billion below the agreed reserves target, but it shouldn't block new funds being disbursed. "That won't cause major problems for the Fund," he said. "I think forgiveness (the waiver) will be approved quickly and the disbursement may take a week or two." https://www.reuters.com/world/americas/imf-wild-child-argentina-seeks-waiver-fx-reserves-misses-will-probably-get-it-2025-06-25/
2025-06-25 10:09
MUMBAI, June 25 (Reuters) - The Indian rupee closed slightly weaker on Wednesday, weighed down by month-end importer dollar demand, while gains in local equities and a revival in risk appetite after a fragile truce between Iran and Israel cushioned the pressure. The rupee closed at 86.0775 against the U.S. dollar, down 0.1% from its close of 85.9750 in the previous session. Sign up here. The currency touched a peak of 85.8075 earlier in the day but reversed course on the back of corporate dollar demand, traders said. Slight weakness in the offshore Chinese yuan was also a dampener for the rupee, a trader at a private bank said. Risk sentiment remained upbeat with most Asian stocks logging gains after the truce between Iran and Israel appeared to hold. The Iran-Israel ceasefire is going well, U.S. President Donald Trump said on Wednesday. Each side claimed victory on Tuesday after 12 days of war, which the U.S. joined with airstrikes in support of Israel to take out Iran's uranium enrichment facilities. The dollar index was up 0.1% at 98.1 while Asian currencies were trading mixed. Brent crude oil futures rose about 1% to $67.8 per barrel. "We believe that the negative impact of the reduced geopolitical risk on the dollar has largely played out," ING Bank said in a note. The dollar could see some stabilisation at these levels but risks remain tilted to the downside, the bank added. Meanwhile, dollar-rupee forward premiums ticked up on the back of the Indian central bank's announcement of a measure to withdraw excess banking system liquidity that lifted near forwards, with the impact spilling over to far tenors as well. The 1-year dollar rupee implied yield rose 7 bps to 1.96%. https://www.reuters.com/world/india/rupee-ends-tad-lower-month-end-importer-dollar-bids-weigh-2025-06-25/
2025-06-25 07:37
Leviathan gas field has begun process of resuming operations Karish field has also restarted after security checks Egypt will resume pumping gas to factories on Friday JERUSALEM/CAIRO, June 25 (Reuters) - Israel's two natural gas fields that supply Egypt and Jordan have resumed operations after being shut down nearly two weeks ago due to the Iran-Israel conflict, partners in the companies said on Wednesday. Two of Israel's three gas fields, Chevron-operated Leviathan and Energean's Karish situated off its Mediterranean coast, provide the bulk of exports to Egypt and Jordan, and have been shut since June 13. Sign up here. That left in operation only the older Tamar field, used mainly for domestic supplies. The halt of Leviathan resulted in a loss in revenue of $12 million, according to a regulatory filing in Tel Aviv from Chevron's (CVX.N) , opens new tab partners in Leviathan, NewMed (NWMDp.TA) , opens new tab and Ratio Energies (RATIp.TA) , opens new tab, citing an initial estimate. They added they intend to examine the possibility of receiving compensation from the state in connection with the production stoppage. Energean (ENOG.L) , opens new tab and NewMed confirmed that the two fields had started operations after Israel and Iran agreed to a ceasefire on Tuesday, adding that the process takes many hours. Israel's Energy Ministry said that after a security assessment, the larger Leviathan field and smaller Karish would reopen, leading to the resumption of gas exports, a rise in state tax revenues and greater flexibility in managing the electricity and industrial sectors. Israeli gas accounts for about 15-20% of Egypt's consumption, data from the Joint Organisations Data Initiative shows. The disruption to Israel's gas supply had led Egyptian fertiliser producers to halt operations. Egyptian Prime Minister Mostafa Madbouly said that pumping gas to factories will resume on Friday, according to a cabinet statement. Leviathan produces 12 billion cubic metres of gas per year for sale to Israel, Egypt and Jordan. That will rise to some 14 bcm in 2026. Two Egyptian sources told Reuters that imports from Israel were expected to rise gradually, with full operations likely to be resumed by Saturday. More imports come in the form of liquefied natural gas for regasification in Egypt. But while Egypt currently has three floating storage and regasification units (FSRUs) to carry out that process, only one is operational. The Energos Eskimo FSRU is expected to become operational soon, the sources said. The unit will be moved to the Sumed terminal, where it will be linked to the national gas grid. "It could take around 11 to 23 days for the unit to become fully operational, although the Ministry of Petroleum could try to compress the time needed," one source said. https://www.reuters.com/business/energy/israels-leviathan-natural-gas-field-resume-operations-few-hours-2025-06-25/
2025-06-25 07:37
DUBAI, June 25 (Reuters) - The World Bank approved a $146 million grant to help Syria restore reliable, affordable electricity and support the country's economic recovery, it said in a statement on Wednesday. After 14 years of war, Syria's electricity sector has been suffering from severe damage to its grid and power stations, aging infrastructure, and persistent fuel shortages. Sign up here. https://www.reuters.com/business/energy/world-bank-finance-syria-with-146-million-restore-electricity-2025-06-25/
2025-06-25 07:22
Gold may hit $2,900 if Mideast tensions don't escalate - analyst Market sees 85% chance of interest rate cut in September US PCE data due on Friday Platinum climbs to over 10-year peak June 25 (Reuters) - Gold prices were steady on Wednesday as market participants remained cautious ahead of key U.S. economic data, while the ceasefire between Iran and Israel weighed on safe-haven demand. Spot gold was up 0.1% at $3,327.91 per ounce at 0158 p.m. EDT (1758 GMT) after prices hit their lowest in over two weeks in the previous session. Sign up here. U.S. gold futures settled 0.3% lower at $3,343.1. With all the momentum and potential in the markets, the factors that typically drive gold never pushed it to new highs, said Daniel Pavilonis, senior market strategist at RJO Futures "So, I think the path is now more to the downside; it may hit $2,900 if things don't escalate in the Middle East." U.S. President Donald Trump revelled in the swift end to war between Iran and Israel, saying he now expected a relationship with Tehran that would preclude rebuilding its nuclear programme. Wall Street's S&P 500 and Nasdaq indexes rose on Wednesday, hovering near a record peak. Federal Reserve Chair Jerome Powell in his second day of congressional testimony reiterated that the central bank doesn't need to be in a rush to cut interest rates due to uncertainty over the impact of the still-unresolved tariff debate. In May, Trump paused his sweeping trade tariffs until July 9 to allow Washington to negotiate compromises with multiple countries. However, Powell added, "I think if it turns out that inflation pressures remain contained, we will get to a place where we cut rates sooner than later." The market currently sees an over 85% chance of a rate cut in September. Bullion tends to do well during periods of uncertainty and in a low-interest-rate environment. Traders are also awaiting U.S. GDP and jobs data due on Thursday, and the Personal Consumption Expenditures (PCE) data on Friday to gauge the Fed's future policy path. Elsewhere, spot silver added 0.8% to $36.2, while palladium fell 0.5% to $1,061.01. Platinum rose 2.8% to $1,352.96, reaching its highest level since September 2014. https://www.reuters.com/world/india/gold-firms-dollar-yields-slip-markets-watch-israel-iran-truce-2025-06-25/
2025-06-25 07:03
June 25 (Reuters) - French state-owned utility EDF's new chief is considering a sale of some assets as part of a review of the firm's portfolio in a bid to meet government demands to spur investments in new nuclear reactors, the Financial Times reported on Wednesday. Dalkia and Edison are among the business units that may be sold, the FT reported, citing people familiar with the situation. Renewable assets, with the exception of EDF's hydraulic power projects, are also being considered for sale, it added. Sign up here. France is nuclear energy's main champion in Europe as it gets around 70% of its energy from the source. EDF's nuclear fleet produces about 70% of France's electricity. Bernard Fontana was nominated to be the next CEO of EDF in March, after President Emmanuel Macron's government lost patience with former chief Luc Remont due to differences over how to provide power and build new capital-intensive nuclear reactors. Fontana has told insiders that he wanted to assess which assets are not profitable or do not fit with the energy group's strategic priorities, the FT reported, adding that the sale could come after the review, although he has not yet concluded which parts of the business should be sold off. EDF did not immediately respond to a Reuters request for comment. Reuters could not immediately verify the report. https://www.reuters.com/business/energy/edf-weighs-asset-sales-amid-greater-push-nuclear-energy-ft-reports-2025-06-25/
