A black market for dollars has absorbed liquidity from the Egyptian banking system over stressing country’s foreign reserves. Egyptian pound has been weekend ignoring several steps adopted by CBE. Finally, it has started mulling to enact tougher regulations on regulating the foreign exchange market.
Tags: Economic News
Puerto Rico Central Bank Governor Restricts Withdrawal To Avert Default in $423M Debt Repayment
Alejandro Garcia Padilla, governor of the Puerto Rica’s central bank, Government Central Bank, has announced an executive order on Saturday. The order restricts withdrawal of funds except for the emergency services in a bid to avoid default in $423 debt repayment scheduled on May 1. Analysts have already warned that failure in debt repayment will definitely attract a default status for GDB.
Yen Hits 17-Months’ High Against US Dollar, Forecast For Further Appreciation
The Japanese yen has reached the top hitting a 17-month high on Tuesday. The appreciation takes place following advice from Japanese Prime Minister for cautious market intervention by authorities. Addition of value to yen cause downward trend in Nikkei average index on the same day leading towards a 18% drop during this year.
Egypt Unveils Special Economic Program To Attract Foreign Investment
Last week, the Bank of Egypt has increased its benchmark rates following a devaluation of local currency by 10%. The moves are believed to be parts of measures taken by the government to address the shortage in foreign currency reserves. Now, the Egyptian government has announced on Sunday a new special program to secure foreign aid and investments.
‘India-China Business & Investment Summit’ Glorifies The ‘Make In India’ Campaign
Seven day lingering summit of the ‘India-China Business & Investment Forum’ has been kicked off on Sunday while highlighting the ‘Make In India’ campaign. More than 20 Indian firms have participated in the summit. Meanwhile, four CEOs from Chinese companies already invested in India, have urged the Chinese investors to avail of the Indian government offered investment opportunities.
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Economists and analysts have repeatedly been suggesting for devaluation of local currency in a bid to ease pressure on foreign currency reserves. But the Egyptian central bank has refrained from doing so considering surge in inflation. The inflation has been recorded as the lowest in February during the last six months and the bank has devalued the currency on Monday.
Through a surprise move, Bank of Japan has adopted negative interest rate aiming to force the banks in investment. Meanwhile, the negative economic outlook has compelled the commercial banks to squeeze their investment portfolios while diminishing the BOJ move. Analysts have forecast for unchanged monetary policy in Tuesday’s meeting while predicting for a major change in April.
S&P and Moody’s have downgraded economic outlook of Azerbaijan during the previous month. On Friday, the other US Stock Exchange Commission recognized rating agency, Fitch Ratings, has also downgraded the outlook. Country’s government and central bank adopted measures have apparently gone in vain to tackle the economic turmoil.
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