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Russia, China Plot Against US Dollar And Pound

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When Coronavirus first broke out in Wuhan Province inside China in December 2019, nobody expected that it would eventually lead to a major shift in global order.

China, Russia, and Pakistan have teamed up with other five countries with the aim of finding ways of dumping the US dollar and never use it for international trade.

The eight-member countries of the Shanghai Cooperation Organization (SCO) have adopted a plan to conduct bilateral trade and investment and issue bonds in local and national currencies instead of US dollars.

Shanghai Cooperation Organization (SCO) was established in 1996 by China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. In principle it is a Eurasian political, economic, and security alliance.

On March 18, 2020, Finance Ministers from member countries were summoned in Moscow, Russia.

Russia, as chairman of the alliance, called for suggestions from all member states for trade and investment in local currencies.

A system of mutual settlement of national currencies was the center point of discussion for as member countries of the SCO.

This Moscow meeting was also attended by Iran, Afghanistan, Belarus, and Mongolia in capacity as observer countries of the SCO. They also wish to join the alliance.

This SCO alliance accounts for approximately half of the world’s population, a quarter of the world’s GDP, and about 80% of Eurasia’s landmass. Member states have a population of nearly 1.5 billion people.

Economic analysts argue that if the trade and investment between the member states of the SCO alliance start, it will strengthen national currencies of member states and promote mutual trade and investment.

Reports say the US dollars and pounds will be deeply weakened.

“Every country that participates in promoting an alternate to US dollar standard will be in the crosshairs of US economic and military war machine. Just ask Libya and Iraq what that feels like,” Sohail from Pakistan says.

John Roberts, the US Chief Justice, argues that all these things will do little to decisively end the domination of the West and the hegemony of the United States in particular.

“Major players should go over to a gold or silver backed, non-fiat currency and displace the United States dollar as the world’s reserve currency and preferred primary currency for international trade, and their international financial institutions have carry the same clout as the IMF, World Bank, BIS,” Roberts says.

A commentator only identifying himself as Mathew, argues that let’s first see some transparency in Russia, China and Pakistan business dealings and accounting process.

“China has proved to the world that it’s neither trustworthy, nor credible. This coronavirus outbreak itself is more than enough for the entire humanity to outcast China from all future business deals,” he says.

According to John Greenfield, Editor of Streetsblog of Chicago, isolating the USA is the best thing that can happen to his country.

“We were way ahead in manufacturing until other countries did it cheaper. US has always built quality products that worked and lasted a long time and now we buy cheap foreign crap that breaks every 3-5 years,” he says.

He adds that this alliance is among the changes that will help bring manufacturing back home and become more creative, more productive and more self-sufficient, “We also will wean ourselves of foreign dependence.”

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Business

Hundreds Of Passengers Miss Flight In Uganda Due To Delayed COVID-19 Tests

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Hundreds of Ugandans have been left stranded at Entebbe International Airport by the Emirates Airways after the laboratory where they had taken their Covid-19 results delayed to return them on time.

In a Snapchat post by Ugandan socialite Sheila Gashumba, she ranted, ‘’When I tell Ugandans that Covid in Uganda is a business they say I have ‘kajanja’.

Now all Emirates passengers have missed their flights because Safari Lab sent Covid results at 2:45pm and Emirates closed its gate at 3pm.

The hospital said it couldn’t work on everyone in the short time.

Around 300 passengers missed their flight yet Safari Lab had made a total of UgSh75m since everyone had paid UGX 250,000 for the test.

In the video where all passengers were visibly angry and frustrated, they can be heard asking for what the solution is and who is going to pay for the tickets again now that those that they had paid for can no longer be used anymore.

Passengers expressed their frustration at the rot in the service.

“I experienced such thing in March as the officers in charge claimed that the gates were close at 1pm as the flight was at 3pm,” one twitter user said.

Some made jokes out of it and asked, if this was because of the US$10 tax that is in the process of being introduced and will be paid by anyone that leaves the country using the Entebbe International Airport.

Another twitter user @kasoxialex2000 asked, ‘’@UgandaCAA (Uganda Civil Aviation Authority), but seriously you guys when you move to some airports don’t you copy something? Why are we ever backwards??? Stop embarrassing us. Who will save Uganda’’
By press time there was no official communication from the Civil Aviation Authority, Safari Lab nor Emirates Airways.

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Kagame Tells Bankers, Banking Can’t Just Be “Service For Elites”

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Banking can’t just be a service for elites, President Paul Kagame has said.  He made the remarks while speaking at the 14th Annual Banking and Finance Conference in Nigeria that he attended virtually.

Running under the theme, ‘’Economic Recovery, Inclusion and Transformation: The Role of Banking and Finance’’, the two-day conference will aim at the need to reposition the Finance and Banking sector as a catalyst for Economic recovery, transformation and inclusive growth.

In his remarks, he noted how the Covid pandemic has affected every aspect of Africa’s economies but at the same time also presents an opportunity for African banks to play a leading role in making societies more resilient and more responsive to the needs of Africans.

‘’Whatever affects business, affects banking. Financial services are the engine of private sector development. Banks are crucial for allocating capital wisely and productively,’’ he further added.

President Kagame noted that, in order to stay competitive, there is need to keep integrating new technology into banking to increase financial inclusion and access as banking can’t just be a service of elites.

He also went ahead to reemphasize what he has always said when it comes to African states always depending on the West and other countries for support. ‘’Indeed, Africa has the resources to fund its own economic growth and reduce dependence on external resources,’’ he said.

Kagame also noted that the African Continental Free Trade Area is creating new opportunities for Pan African Trade and investment. ‘’Banks with continental reach, like several of the institutions represented here can lead the way in cementing economic integration.’’

As he concluded, he stated how the banking sector, more than any other, understands the importance of integrity and good customer service. ‘’Banking is ultimately about trust. We look to you to set the pace in this regard. Our role as governments is to maintain good enabling environments, protecting both shareholders and customers while allowing for innovation. We expect you to keep challenging us on this,’’ he said.

In attendance at the same conference was the Central Bank of Nigeria Governor Edwin Emefiele who made a huge announcement.  He said, ‘’Central Bank, will, in the next twelve months be establishing the Nigerian International Financial Centre (NIFC). The NIFC will act as an international gateway for capital and investments, driven by technology and payment system infrastructure.’’

In Rwanda, current statistics show that even though there are still various challenges that continue to put women behind men when it comes to financial inclusion, the number of women who are currently banked have risen from 24% in 2016 to 34% in 2021.

This is according to a FinScope 2020 Gender thematic report on the state of women financial inclusion in Rwanda that was supported by Access to Finance Rwanda (AFR).

In one of the Focus Notes from Access to Finance Rwanda, farmers reported that women and men enjoy equal rights and treatment at specified two Financial institutions in the Focus note and therefore no special gender based treatment yet the outcomes of each groups are not equal.

At both Financial Institutions, women and youths are more likely to use loans to hire land farm as they lack access to land and they have been assisted by addressing some of the barriers that women and youth face in accessing loans.

The conference will therefore focus on how banking can be a service enjoyed by all Africans regardless of their financial strengths through making access to finance for development is an easy and smooth process.

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400K Coffee Farmers To Adopt Cashless System

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About 400,000 coffee farmers in Rwanda are being targeted to embrace a cashless payment system facilitated by Bank of Kigali.

On Friday, Bank of Kigali through IKOFI integration with Smart Kungahara System (SKS) said it expected to serve more than 300 coffee washing stations, with a target market size of more than 400,000 coffee farmers.

“Through our partnership with RWACOF, we enabled coffee farmers to embrace cashless means of payment. We believe in digital transformation for everybody including farmers. These telephones will significantly help famers to adopt a more digital lifestyle,”said ⁦⁦Diane Karusisi the CEO Bank of Kigali.

According to BK, currently, 1,767 agro dealers and 263,691 farmers are active IKOFI wallet users benefiting from the service by digitally paying for their agro-inputs through mobile phones, conveniently paying for other services such as Irembo, RRA, WASAC, all done through *334*2#.

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