Talk of de-dollarization is back on the table after new data from the US Treasury Department revealed that China offloaded close to $50 billion in US Treasuries in the first quarter and had reduced its holdings by more than $100 billion in the year through to March 2023. The revelations come as China and the US are locked in an increasingly tense stand-off involving trade and China’s intentions toward Taiwan. Belgium, which is often referenced as a proxy custodian for China’s debt holdings, reportedly disposed of more than $20 billion of Treasuries in the same period. Not everyone is convinced ..read more

President Javier Milei’s currency moves give markets room for planning, but his ambitious economic restructuring faces roadblocks. For the better part of 30 years, Argentina has been making economic headlines for the wrong reasons. Its persistent and serious economic and social crisis led the country to default on its international sovereign debt in 2001, 2014 and, most recently, 2020. The ongoing credit and currency crisis has left Argentina with the equivalent of only about 5% of GDP currently available in credit lines and mortgages; more functional economies tend to have the equivalent of a ..read more

Lenders have begun raising additional capital to meet new targets set by the Central Bank of Nigeria, which has given them two years from last month to attain the new standards. In some cases, this will mean raising capital by about 10 times over current minimums. The new requirements are to ensure banks have a robust capital base to absorb unexpected losses and the capacity to contribute to the growth and development in Nigeria, the central bank said, after the government set a goal of a $1 trillion economy by 2030. Bigger banks with larger capital bases and capacity “can underwrite larger le ..read more

President Javier Milei’s currency moves give markets room for planning, but his ambitious economic restructuring faces roadblocks. For the better part of 30 years, Argentina has been making economic headlines for the wrong reasons. Its persistent and serious economic and social crisis led the country to default on its international sovereign debt in 2001, 2014 and, most recently, 2020. The ongoing credit and currency crisis has left Argentina with the equivalent of only about 5% of GDP currently available in credit lines and mortgages; more functional economies tend to have the equivalent of a ..read more

After years of lackluster growth, foreign direct investment is growing.         As recent history has consistently demonstrated, there is nothing more certain than uncertainty. A pandemic, geopolitical tensions, trade frictions and even armed conflict have complicated the landscape for global foreign direct investment, leaving business leaders with no clear signals as they set priorities and make critical investment decisions outside their borders. Adding urgency to the matter, there are now signs of a revival in FDI after a couple of years of decline. But th ..read more

Hong Kong is positioning itself as a hub for insurance-linked securities (ILS), particularly catastrophe bonds, as it aims to aid global fundraising for managing natural disaster losses. Clement Cheung, CEO of Hong Kong’s Insurance Authority (IA), has emphasized the necessity of creating the right ecosystem for this endeavor. The city is witnessing increased engagement with issuers and investors, especially in China’s Greater Bay Area, alongside efforts to enhance talent and risk modeling capabilities in local universities. A key challenge in natural-catastrophe insurance coverage is the scarc ..read more

Lenders have begun raising additional capital to meet new targets set by the Central Bank of Nigeria, which has given them two years from last month to attain the new standards. In some cases, this will mean raising capital by about 10 times over current minimums. The new requirements are to ensure banks have a robust capital base to absorb unexpected losses and the capacity to contribute to the growth and development in Nigeria, the central bank said, after the government set a goal of a $1 trillion economy by 2030. Bigger banks with larger capital bases and capacity “can underwrite larger le ..read more

Two of Europe’s biggest carmakers are fighting hard to keep Chinese electric vehicle imports from getting a foothold on their turf. Stellantis CEO Carlos Tavares is anxiously eyeing negotiations between the Italian government and Chinese auto manufacturer Dongfeng Motor; with Italian icons Fiat, Alfa Romeo and Maserati under its vast umbrella, Stellantis does not want Dongfeng building a plant in its playground. Qian Xie, Dongfeng’s chief in Europe, is in early talks with Prime Minister Giorgia Meloni to establish a plant with an annual capacity of 100,000 vehicles. For the Italian government ..read more

Thailand, which launched a major pilot retail central bank digital currency (CBDC) last year, is following up with a pioneering digital token payout to 50 million lower-income citizens, aimed at encouraging them to spend in their local communities. The 500 billion-baht ($13.7 billion) plan was announced last month by Prime Minister Srettha Thavisin and is set to launch at the end of this year. The initiative was earlier rumored to be funded by borrowing, adding to the country’s public debt, but instead will be financed out of Thailand’s fiscal budget over the next two years. The state-owned Ba ..read more

The biggest national election in global history kicked off on April 19, but the final results will not be announced until June 4th. With a population of approximately 1.4 billion and a landmass stretching some 3,000 kilometers from west to east and from north to south, India’s elections represent a colossal logistical challenge. Since they cannot take place on a single day, voting is split into seven phases across the country’s 28 states and eight union territories, or almost six weeks in total. With nearly 970 million registered voters, including 18 million youth eligible for the first time ..read more