Connect with us
Advert

Business

Russia, China Plot Against US Dollar And Pound

Published

on

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.”

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Germany, Rwanda Sign Rwf90B Financing Agreement

Published

on

Finance Minister, Dr. Uzziel Ndagijimana, and the Germany Ambassador to Rwanda, Dr. Thomas Kurz, today signed two agreements worth € 78 million (Approximately Frw 90 billion).

The financing and technical cooperation agreement is the outcome of the Inter-Governmental Negotiations that were concluded last Year between our two respective Governments.

59 million Euros of the grant agreement will be provided through KFW Development Bank and will support various initiatives including technical and vocational training, promotion of export oriented SMEs, through the support to Export Credit Facility in Rwanda under BRD, promotion of green investments as well as ICT support.

The remaining Euros19 million will be channeled through GIZ and will support decentralization and good governance, prevention of sexual and gender based violence among others.

Speaking after the signing event, Minister Ndagijimana said the financial support extended to Rwanda will support key areas that are critical to the attainment of the country’s development objectives.

“This support comes at a critical juncture given the effects COVID-19 has had on our social –economic advancement. We look forward to boosting these important areas that are in line with our National Strategy for Transformation. We thank Germany for the strong cooperation and solidarity especially during the COVID-19 pandemic,“ Minister Ndagijimana said.

Ambassador Kurz stressed: “These Agreements underline the long-standing and proven cooperation between our two countries based on friendship and mutual trust. Germany is committed to support Rwanda in its Economic Recovery Process and the implementation of NST 1 in order to reach the SDGs and to leave no one behind.”

The Division of Labor allows Germany development cooperation programme to be active in Education (including TVET); Decentralization and Good Governance, Private Sector Development and Youth; Public Financial Management (PFM); Financial Development. Germany also supports Regional Projects: Centre of Excellence for Health, Improvement of the Investment Climate, Microfinance sector-MIFSSA, ICGLR and Energy.

Continue Reading

Business

Malawi Issues 86 Licenses For Cannabis Production

Published

on

Malawi’s Cannabis Regulatory Authority said on Friday they had issued 86 licenses to 35 companies and cooperatives to venture into cannabis cultivation for industrial hemp production.

Boniface Kadzamila the Board Chairman of Cannabis Regulatory Authority made the announcement from Lilongwe on Friday afternoon.

He said that a total of 41 companies applied but only 35 of them satisfied the requirements.

According to him the authority has issued licenses for cultivation, processing and storage and has not yet issued any license for export of cannabis.

A recent analysis by Invegrow Limited, one of the firms that conducted research on industrial hemp, found that a kilogram of industrial hemp could fetch U$1,444 on the market that there is potential for direct annual benefit for Malawians in excess of U$ 135,440,973 on 16.5 hectares or U$8,803,663 per five hectares.

The analysis further indicated that the crop has ready markets whose global value chain is worth U$9billion thus giving local Malawi investors a basis to take up cannabis production.

Continue Reading

Business

ex-Nakumatt CEO’s Home Auctioned

Published

on

Atul Shah, the former chief executive officer of the collapsed retail giant Nakumatt lost his home to auctioneers over a U$18,609,740 debt.

The auction follows the conclusion of a protracted court battle after the Kenyan High Court dismissed a petition seeking to overturn the forced sale of the high-end property by KCB Group.

Justice Francis Tuiyott dismissed the petition by the administrator of the collapsed Supermarket chain, saying it has no chance of success.

Nakumatt’s court-appointed administrator had opposed the sale on grounds that the auction failed to follow the law, and tagged Mr Shah as an interested party to suit.

The bank, through Leakey Auctioneers, early in the year quietly sold the property, which Mr Shah had used as additional security as Nakumatt’s guarantor to offer comfort to the multiple bank loans.

“This court is not persuaded that the suit, as currently presented, demonstrates a prima facie case with a probability of success. Being unable to surmount that hurdle, it is needless for this court to discuss other aspects raised in the application,” the judge said.

KCB had earlier sold Mr Shah’s prime property in Industrial Area, Nairobi, to Furniture Palace International Ltd for about U$9,677,064 court records show.

Continue Reading
Advertisement
Advertisement
Advertisement Enter ad code here
Advertisement Enter ad code here

Trending