Currency convertibility – Kopa Runescape 2 Gold http://www.koparunescape2gold.com/ Fri, 24 Sep 2021 21:44:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.koparunescape2gold.com/wp-content/uploads/2021/07/kopa.png Currency convertibility – Kopa Runescape 2 Gold http://www.koparunescape2gold.com/ 32 32 The time for central bank digital currencies has come https://www.koparunescape2gold.com/the-time-for-central-bank-digital-currencies-has-come/ https://www.koparunescape2gold.com/the-time-for-central-bank-digital-currencies-has-come/#respond Fri, 24 Sep 2021 10:52:01 +0000 https://www.koparunescape2gold.com/the-time-for-central-bank-digital-currencies-has-come/ A digital currency is like any other currency, money, or other monetary asset that is primarily managed, stored, or traded on a digital computer system, especially over the internet. They are different from printed banknotes or minted coins and generally have no physical form. Digital currencies, however, express properties similar to physical currencies. The different […]]]>

A digital currency is like any other currency, money, or other monetary asset that is primarily managed, stored, or traded on a digital computer system, especially over the internet. They are different from printed banknotes or minted coins and generally have no physical form.

Digital currencies, however, express properties similar to physical currencies. The different types of digital currencies are virtual currency (cryptocurrency) and central bank digital currency (CBDC). A digital currency can reduce transaction processing costs and enable seamless transfer across borders.

Virtual currency is an electronic representation of monetary value that can be issued, managed and controlled by private issuers. They are often represented in terms of tokens and can remain unregulated without legal tender. They are based on a trust system and cannot be issued by a central bank or any other banking regulatory authority.

They derive their value from the underlying mechanism like mining in cryptocurrency cases. They have no intrinsic value. They do not represent the debt or liability of any person and there is no issuer.

The concept of CBDC is quite old. Nobel laureate James Tobin, an American economist, suggested in the 1980s that Federal Reserve banks could make widely accessible medium available to the public with the convenience of deposits and currency security. Yet it is in the last decade that this issue has been widely debated.

Money has taken either the form of commodities (which have intrinsic value) or in terms of debt instruments. When money has no intrinsic value, it must be a title to commodities or a title to other debt obligations. Paper money is such a representative currency and it is essentially a debt instrument. The owner of the currency knows who owes him or who has the underlying responsibility. Money is a form of money that belongs exclusively to the sovereign or to a central bank. It is a liability of the issuing central bank and an asset of the holding public.

The CBDC is an electric form of central bank money. It is an electronic record of official currency and is issued and regulated by the monetary authority. The introduction of cryptocurrencies paved the way for CBDCs. The advantages of CBDCs are:

Simplify the implementation of monetary and fiscal policy by facilitating the spread of money directly into the economy. The current system involves commercial banks as intermediaries between central banks and the consumer.

Promotion of financial inclusion in an economy by integrating the unbanked into the financial system. Costs associated with opening accounts, paying benefits, collecting taxes and other government functions. It eliminates expensive infrastructure.

The costs of transaction processing are very low for CBDCs and allow seamless transfer across borders.

The invention a secure and immutable ledger capable of tracking transactions.

A CBDC eliminates the risk of third parties (due to rumors or external events).

A CBDC is universally accessible.

Many countries are exploring the possibility of introducing and using CBDCs in their economies. The main disadvantage of a centralized currency is that it can erode the privacy of citizens. In addition, the CBDC has the disadvantage of introducing cumbersome regulations from a central bank / monetary authority.

Why a CBDC

A CBDC will keep track of all transactions and could be used to eliminate corruption / black money. The cryptocurrency ecosystem could potentially disrupt the existing monetary and financial infrastructure and hence the attempt by central banks / monetary authority to anticipate such an eventuality.

CBDC will act as a general representation of the country’s currency. It will function as a unit of account, a store of value and a medium of exchange for daily transactions. A CBDC will be backed by appropriate monetary reserves such as gold and / or foreign currency. CBDCs would also potentially enable a real-time baseline and more cost-effective globalization of the payment system.

It is conceivable that an Indian importer would pay their US exporter in real time in digital dollars without the need for a middleman. This payment would be final as if cash dollars were handed over, nor would it require the US federal system to be open to settlement. The difference in time zone would no longer matter in currency settlements.

Crypto vs. CBDC

Cryptocurrencies as we know them today are extremely volatile and do not enjoy government backing. CBDCs overcome this loophole by using the same underlying cryptocurrency technology. Governments recognize the CBDC as legal tender in the jurisdiction of the issuing central bank, which means anyone can use them for payments and every merchant must accept them.

It increases the security and efficiency of wholesale and retail payments. In a digital society, no tickets or coins are available and the country becomes cashless. As private electronic money increases the pressure on the government issue, a CBDC is strong. The CBDC is available 24 hours a day and is also an excellent tool to avoid the credit risk of private counterparties.

Country experiences

While interest in CBDCs is now almost universal, very few countries have even reached the pilot stage of launching their CBDCs. A 2021 BIS survey of central banks found that 86% were actively seeking the potential of CBDCs, 60% were experimenting with the technology, and 14% were deploying pilot projects. They include: China, the Digital Yuan; Sweden, e-Krona; Bahamas, sand dollar; Eastern Caribbean, DXCD; and Marshall Islands, sovereign.

The advantage of issuing a CBDC might be sufficient to justify India’s issuance of a CBDC. India is the world leader in digital payments innovations. Its payment systems are available 24/7 for retailers and wholesalers. They are largely real-time and the cost of transactions is almost zero or very low.

Digital payments have grown at an impressive 55% CAGR. It’s hard to find a payment system like UPI that allows transactions up to ₹ 1. Yet cash remains the preferred method of payment for receiving cash for everyday expenses. For small transactions up to 500, cash is the preferred medium. India’s high currency-to-GDP ratio offers another advantage to CBDCs.

The costs of printing, transporting, storing and distributing change can be reduced. The advent of private virtual currencies (VCs) may well be another reason why CBDCs may become necessary. If these CVs are recognized, national currencies with limited convertibility will be threatened.

Currencies like the US dollar will not be affected as most of these CVs are denominated in dollars. Developing our own CBDC could protect the public from the abnormal level of volatility experienced by some of these venture capital firms. Thus, CBDCs for emerging economies are desirable not only for the benefits they create in payment systems, but might also be necessary to protect the general public in a volatile private venture capital environment.

Like other central banks, the RBI has also been exploring the pros and cons of introducing CBDCs for quite some time. The RBI is currently working on a phased implementation strategy and is looking at use cases that could be implemented with little to no disruption.

Central banks pay considerable attention to CBDCs and, therefore, they will soon become a reality. CBDCs will contribute to the financial inclusion of the unbanked population. CBDCs will have far-reaching implications for the future of finance, including the buying and selling of digital assets and securities. There should be a dedicated legal framework to facilitate transparency, distribution and issuance of a digital form of currency by global governments.

As regulators and central banks take concrete steps to establish CBDCs, the world will begin to embrace digital currencies as the norm. The introduction of CBDCs has the potential to provide significant benefits such as reduced reliance on cash, lower transaction costs, and reduced settlement risk. This could lead to more robust, efficient, reliable, regulated and bid-based payment options. Any idea should bide its time. It could be the time of the CBDCs.

The author is responsible for treasury, Finrex Treasury Advisors


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Cryptocurrency In India: RBI’s Ex-Guv Subbarao Explains Why RBI Is Worried About Cryptocurrency https://www.koparunescape2gold.com/cryptocurrency-in-india-rbis-ex-guv-subbarao-explains-why-rbi-is-worried-about-cryptocurrency/ https://www.koparunescape2gold.com/cryptocurrency-in-india-rbis-ex-guv-subbarao-explains-why-rbi-is-worried-about-cryptocurrency/#respond Fri, 24 Sep 2021 07:20:00 +0000 https://www.koparunescape2gold.com/cryptocurrency-in-india-rbis-ex-guv-subbarao-explains-why-rbi-is-worried-about-cryptocurrency/ MUMBAI: The Reserve Bank of India (RBI) has repeatedly stated that it has “serious” and “major” concerns about cryptocurrencies without ever explaining what those concerns might be. The central bank’s aversion to virtual currencies is seen as one of the main motivations behind the government’s bill to ban all private cryptocurrencies. The crypto industry thinks […]]]>
MUMBAI: The Reserve Bank of India (RBI) has repeatedly stated that it has “serious” and “major” concerns about cryptocurrencies without ever explaining what those concerns might be. The central bank’s aversion to virtual currencies is seen as one of the main motivations behind the government’s bill to ban all private cryptocurrencies.

The crypto industry thinks the central bank looks at cryptocurrencies through a narrow lens and doesn’t appreciate the different use cases of these virtual currencies. The industry’s argument is that cryptocurrencies are a digital asset and not a threat to the monetary sovereignty of the rupee.

While concerns that cryptocurrencies may facilitate money laundering and terrorist financing are expressed globally, RBI, for its part, has refrained from explaining its main concerns in detail, leaving the crypto industry is scratching its head.



In an interview with ETMarkets.com, former RBI Governor Dr D Subbarao said that RBI’s concerns about cryptocurrencies like Bitcoin are threefold.

Monetary stability
The RBI is the sole currency manager in the economy and is responsible for the maintenance of the monetary system. Subbarao believes that if virtual currencies gain ground, it could threaten monetary stability, because “it is quite possible that the formation of national prices is fixed in this virtual currency”.

Financial stability
For Subbarao, the threat to the financial stability of the Indian economy from cryptocurrencies like Bitcoin is simple. “If regulated institutions, banks for example, are exposed to virtual currencies and if that currency is very volatile, then there could be financial instability,” Subbarao said.

The former finance secretary believes the threat to financial stability is particularly significant due to virtual currencies that have no intrinsic value and are supported only by algorithms, like Bitcoin and Ethereum.

Capital outflow
Interestingly, Subbarao sees virtual currencies such as Bitcoin as a threat to the stability of India’s external sector. “Cryptocurrencies could become a vector of capital flight, especially in a country like India where there is still no full convertibility of capital,” said the former governor.

With this in mind, Subbarao views the efforts of central banks to create their own central bank digital currencies (CBDCs) as a defensive mechanism. A central bank digital currency is a virtual version of the country’s sovereign currency and is issued by the central bank. This is different from private cryptocurrencies like Bitcoin, which are issued by private citizens.

Subbarao, who led the central bank during the global financial crisis as well as the infamous 2013-14 “tantrum typing” period, believes Facebook’s plans to launch a stablecoin in 2016 (Libra) were the turning point. when central banks saw cryptocurrencies as an attack on their sovereignty.

The former governor, who currently resides in Singapore, believes that RBI’s main motivation for launching a central bank digital currency is to not be left behind. “The main motivation is to make sure that she is not left behind in a world where CBDCs could become very ubiquitous,” said Subbarao.

CBDCs could also help the central bank reduce the high costs it incurs for printing and maintaining currency in circulation. However, in an economy where payment systems have already become very penetrating and virtual wallets are multiplying every minute, Subbarao sees little incentive for individuals to move away from private cryptocurrencies.


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NYPPEX issues China private equity investment risk warning https://www.koparunescape2gold.com/nyppex-issues-china-private-equity-investment-risk-warning/ https://www.koparunescape2gold.com/nyppex-issues-china-private-equity-investment-risk-warning/#respond Thu, 23 Sep 2021 12:34:00 +0000 https://www.koparunescape2gold.com/nyppex-issues-china-private-equity-investment-risk-warning/ NEW YORK, September 23, 2021 / PRNewswire / – NYPPEX, a leading global provider of private equity secondary liquidity, today issued a warning regarding the risk of investing in China private equity investments. NYPPEX believes that China enters a new phase of government policies which, in short, seek to focus on “common prosperity” and Mao […]]]>

NEW YORK, September 23, 2021 / PRNewswire / – NYPPEX, a leading global provider of private equity secondary liquidity, today issued a warning regarding the risk of investing in China private equity investments. NYPPEX believes that China enters a new phase of government policies which, in short, seek to focus on “common prosperity” and Mao Zedong’s vision for transitional capitalism. Mao Zedong believed that capitalism was initially necessary only to reduce widespread poverty in the China.

It was reported by Reuters on Friday September 17th, which Chinese government officials recently told major real estate developers of Hong Kong prepare for higher taxes to help solve the city’s housing shortage, such as Beijing planned to target the city’s wealth gap and skyrocketing house prices. As a result, on Monday, September 20, shares in Li Ka-shing’s CK Asset fell around 9.3% and Henderson’s Land lost 13.2%.

Further away September 10, Blackstone scrapped its $ 3 billion acquisition of Soho China, a major real estate developer, despite a roughly 60% discount on Soho’s book value at the end of 2020.

NYPPEX estimate that from China policy changes in 2021 resulted in a drop of more than 1000 billion dollars of the stock market value of Chinese companies listed on the stock exchange.

NYPPEX considers that a possible lack of Evergrande Group in China, a large Chinese real estate developer with more than $ 125 billion in debt, could have an adverse effect on funds around the world. Some China Evergrande the bonds traded at around 25% of their face value in September 2021.

NYPPEX believes that recent declines in Chinese stocks will pose increased risk to private investment in Chinese private companies and private equity funds.

NYPPEX believes that the time has come for investors and funds to assess their exposure and portfolio allocations to investments in China private capital.

About NYPPEX Holdings

NYPPEX Holdings operates a global private market that provides price data and the ability for qualified investors to access secondary liquidity in alternative investment funds in a fair and ethical manner. Its clients include alternative investment funds, financial institutions, endowments, foundations, institutional investors, family offices, private clients and their respective advisors around the world.

Since 2004, the NYPPEX QMS ™ was previously recognized by the US Internal Revenue Service as a Qualified Matching Service for Private Partnerships through a private letter under Internal Revenue Code §1.7704.

In 2014, the NYPPEX (Shanghai) Investment Consulting Co. Ltd. was among the first foreign financial companies approved as members of the Shanghai Free Trade Zone (FTZ), along with Oaktree Capital, Citadel and Man Group. Among its features, the Shanghai Free Zone allows convertibility of the yuan and unrestricted exchange of currencies, as well as a 10-year tax-free period for businesses in the region.

Its private securities are offered privately to qualified investors through NYPPEX, LLC and only in jurisdictions were allowed. NYPPEX is regulated in the United States by the SEC and FINRA. FINRA, SPIC member.

Copyright 2021 NYPPEX Holdings, LLC. All rights reserved.

For more information, please visit www.nyppex.com or contact [email protected] or by phone at +1 (914) 305-2825.

SOURCE NYPPEX Private Markets

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Fingers crossed that failed Sri Lankan banknote auction, which ravaged the rupee, to end https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end-2/ https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end-2/#respond Wed, 22 Sep 2021 02:57:29 +0000 https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end-2/ ECONOMYNEXT – Sri Lanka hosts the first non-price-controlled Treasury bill auction on Wednesday that crippled bond markets and led to liquidity injections that ravaged the rupee and pushed the economy into a currency crisis triggering the world’s worst deficits. balance of payments history. Price controls on bill and bond auctions have gradually discouraged investors for […]]]>

ECONOMYNEXT – Sri Lanka hosts the first non-price-controlled Treasury bill auction on Wednesday that crippled bond markets and led to liquidity injections that ravaged the rupee and pushed the economy into a currency crisis triggering the world’s worst deficits. balance of payments history.

Price controls on bill and bond auctions have gradually discouraged investors for longer-term bonds and 12-month bills, and secondary market trading has dried up.

Bond auctions crippled

On Tuesday, a single 2024 bond was listed at 8.35 / 45%, down from 8.25 / 40, according to brokers on Friday.

The central bank offers 39.5 billion rupees in 3, 6 and 12 month bills.

There were no secondary market quotes for the 12 month notes.

Sri Lanka’s 3, 6 and 12 yields flattened as price controls and cash injections continued over the past year and a half, a telltale sign of a currency crisis.

When the offers are rejected and the central bank prints money to buy bills, rates remain stable week after week, giving a straight curve over time until the currency collapses.

In times of monetary stability, however, there is a spread of about 100 basis points or more between 3 and 12 month bills.

The wand anomaly continues until deferred corrections are made to stabilize the rupee.

Then the gap between the 3 and 12 month bills widened, accentuating the steepening of the yield curves.

As stability returns, credit slows after rate hikes, rates fall. If the currency is allowed to rebound, rates fall faster. At the moment, however, Sri Lanka’s foreign exchange markets are also dysfunctional.

The new central bank governor, Nivard Cabraal, ended price controls last week.

There is a high degree of uncertainty among market players.

“The offers can be high,” said one dealer. “We don’t know if they will be accepted.”

The interbank money market is now short by 200 billion rupees following an increase in the reserve requirement ratio as well as some foreign exchange interventions in September. The shorts are filled with 6.0 percent printed window silver.

It is not clear why the statutory reserve rate was raised before the crippled bond auctions were allowed to operate.

In order to fill liquidity with purchases of foreign assets after the liquidity injections stop, interbank foreign exchange markets where internally unmatched net dollar balances are traded between banks must also function.

Hindered Forex Markets

In addition to crippled bond markets, Sri Lanka’s foreign exchange markets are also hampered by a series of controls. There is no spot market and term hedging is prohibited.

The exchange rate is decreed at 203 to the US dollar, but there is no monetary policy to support it as long as there are injections of liquidity to apply artificially low interest rates.

Despite the weakening of the peg through cash injections and low interest rates, more cash is being pumped into the system through currency buybacks from exporters, further exerting pressure on the exchange rate. Similar cascading policy mistakes have been seen in the past, analysts have shown.

In order to maintain a stable exchange rate (a credible anchor), the monetary authority must allow interest rates to move so that no currency is printed to keep rates artificially low and interventions must be unsterilized, or mostly unsterilized so that the credit system tightens. and overnight rates are going up.

Social unrest exchange rate

Sri Lanka follows a so-called ‘flexible exchange rate’, a very unstable anchor regime involving two contradictory anchors exploited with an inflationary policy to keep rates low until the currency peg collapses .

“These are new words to describe a very unstable Third World after WWII or soft ankles without a credible monetary anchor that trigger currency crises, social unrest and sometimes civil wars,” said Bellwether, business columnist for ENs.

“Flexible exchange rates for social unrest were previously also known as dirty floats or managed floats.”

Importers are now buying dollars at 230 for one or more US dollars in the over-the-counter market, as the low interest rates of the rupee have caused exporters to hold on to dollars instead of converting them.

In the absence of liquidity injections, any hoarding of the dollar should have pushed up rupee rates and crowded out domestic credit, keeping the external sector in balance.

However, cash injections keep dollars low and also domestic credit to grow uncontrollably, triggering imports.

Sri Lanka’s key rate is still 6.00 percent at which all procedures are sterilized.

The central bank effectively halted the convertibility (float) of the rupee for business transactions, which caused the rupee to drop to 230 or less.

A float does not work, however, if liquidity continues to be injected either through failed bond auctions or sterilized interventions.

Credit expansion, monopoly, price controls

Sri Lanka is now mired in trade controls, price controls and currency shortages as the inflated money supply has undermined and destabilized the market, while import-substituting oligopolies shun the public under the guise of trade controls.

In parliament on Tuesday, ruling party lawmakers called for the demonetization of rupee banknotes and the control of parallel market operators in the manner of many European governments printing money in the last century as Marxism and the Keynesianism spread as new religions.

“For more than sixty years, European governments and parliaments have been eager to obstruct the functioning of the market, interfere with business and cripple capitalism,” wrote economist Lugwig von Misses.

“They blithely ignored warnings from economists. They erected trade barriers, they encouraged the expansion of credit and an easy money policy, they used price controls, minimum wage rates and subsidies.

“They turned taxation into confiscation and expropriation; they proclaimed that reckless spending was the best method of increasing wealth and well-being.

“But when the inevitable consequences of such policies, long predicted by economists, became increasingly evident, public opinion did not blame these expensive policies, it blamed capitalism.

“In the eyes of the public, it is not anti-capitalist policies, but capitalism that is at the root of economic depression, unemployment, inflation and rising prices, monopoly and waste,
unrest and war. (Colombo / September 22/2021)


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Fingers crossed that failed Sri Lankan banknote auction, which ravaged the rupee, to end https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end/ https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end/#respond Wed, 22 Sep 2021 02:55:26 +0000 https://www.koparunescape2gold.com/fingers-crossed-that-failed-sri-lankan-banknote-auction-which-ravaged-the-rupee-to-end/ ECONOMYNEXT – Sri Lanka hosts the first non-price-controlled Treasury bill auction on Wednesday that crippled bond markets and led to liquidity injections that ravaged the rupee and pushed the economy into a currency crisis triggering the world’s worst deficits. balance of payments history. Price controls on bill and bond auctions have gradually discouraged investors for […]]]>

ECONOMYNEXT – Sri Lanka hosts the first non-price-controlled Treasury bill auction on Wednesday that crippled bond markets and led to liquidity injections that ravaged the rupee and pushed the economy into a currency crisis triggering the world’s worst deficits. balance of payments history.

Price controls on bill and bond auctions have gradually discouraged investors for longer-term bonds and 12-month bills, and secondary market trading has dried up.

Bond auctions crippled

On Tuesday, a single 2024 bond was listed at 8.35 / 45%, down from 8.25 / 40, according to brokers on Friday.

The central bank offers 39.5 billion rupees in 3, 6 and 12 month bills.

There were no secondary market quotes for the 12 month notes.

Sri Lanka’s 3, 6 and 12 yields flattened as price controls and cash injections continued over the past year and a half, a telltale sign of a currency crisis.

When the offers are rejected and the central bank prints money to buy bills, rates remain stable week after week, giving a straight curve over time until the currency collapses.

In times of monetary stability, however, there is a spread of about 100 basis points or more between 3 and 12 month bills.

The wand anomaly continues until deferred corrections are made to stabilize the rupee.

Then the gap between the 3 and 12 month bills widened, accentuating the steepening of the yield curves.

As stability returns, credit slows after rate hikes, rates fall. If the currency is allowed to rebound, rates fall faster. At the moment, however, Sri Lanka’s foreign exchange markets are also dysfunctional.

The new central bank governor, Nivard Cabraal, ended price controls last week.

There is a high degree of uncertainty among market players.

“The offers can be high,” said one dealer. “We don’t know if they will be accepted.”

The interbank money market is now short of 200 billion rupees following an increase in the reserve requirement ratio as well as some foreign exchange interventions in September. The shorts are filled with 6.0 percent printed window silver.

It is not clear why the statutory reserve rate was raised before the crippled bond auctions were allowed to operate.

In order to fill liquidity with purchases of foreign assets after the liquidity injections stop, interbank foreign exchange markets where internally unmatched net dollar balances are traded between banks must also function.

Hindered Forex Markets

In addition to crippled bond markets, Sri Lanka’s foreign exchange markets are also hampered by a series of controls. There is no spot market and term hedging is prohibited.

The exchange rate is decreed at 203 to the US dollar, but there is no monetary policy to support it as long as there are injections of liquidity to apply artificially low interest rates.

Despite the weakening of the peg through cash injections and low interest rates, more cash is being pumped into the system through currency buybacks from exporters, further exerting pressure on the exchange rate. Similar cascading policy mistakes have been seen in the past, analysts have shown.

In order to maintain a stable exchange rate (a credible anchor), the monetary authority must allow interest rates to move so that no currency is printed to keep rates artificially low and interventions must be unsterilized, or mostly unsterilized so that the credit system tightens. and overnight rates are going up.

Social unrest exchange rate

Sri Lanka follows a so-called ‘flexible exchange rate’, a very unstable anchor regime involving two contradictory anchors exploited with an inflationary policy to keep rates low until the currency peg collapses .

“These are new words to describe a very unstable Third World after WWII or soft ankles without a credible monetary anchor that trigger currency crises, social unrest and sometimes civil wars,” said Bellwether, business columnist for ENs.

“Flexible exchange rates for social unrest were previously also known as dirty floats or managed floats.”

Importers are now buying dollars at 230 for one or more US dollars in the over-the-counter market, as the low interest rates of the rupee have caused exporters to hold on to dollars instead of converting them.

In the absence of liquidity injections, any hoarding of the dollar should have pushed up rupee rates and crowded out domestic credit, keeping the external sector in balance.

However, cash injections keep dollars low and also domestic credit to grow uncontrollably, triggering imports.

Sri Lanka’s key rate is still 6.00 percent at which all procedures are sterilized.

The central bank effectively halted the convertibility (float) of the rupee for business transactions, which caused the rupee to drop to 230 or less.

A float does not work, however, if liquidity continues to be injected either through failed bond auctions or sterilized interventions.

Credit expansion, monopoly, price controls

Sri Lanka is now mired in trade controls, price controls and currency shortages as the inflated money supply has undermined and destabilized the market, while import-substituting oligopolies shun the public under the guise of trade controls.

In parliament on Tuesday, ruling party lawmakers called for the demonetization of rupee banknotes and the control of parallel market operators in the manner of many European governments printing money in the last century as Marxism and the Keynesianism spread as new religions.

“For more than sixty years, European governments and parliaments have been eager to obstruct the functioning of the market, interfere with business and cripple capitalism,” wrote economist Lugwig von Misses.

“They blithely ignored warnings from economists. They erected trade barriers, they encouraged the expansion of credit and an easy money policy, they used price controls, minimum wage rates and subsidies.

“They turned taxation into confiscation and expropriation; they proclaimed that reckless spending was the best method of increasing wealth and well-being.

“But when the inevitable consequences of such policies, long predicted by economists, became increasingly evident, public opinion did not blame these expensive policies, it blamed capitalism.

“In the eyes of the public, it is not anti-capitalist policies, but capitalism that is at the root of economic depression, unemployment, inflation and rising prices, monopoly and waste,
unrest and war. (Colombo / September 22/2021)


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Economy contradicts democracy: Russian markets explode amid political sabotage https://www.koparunescape2gold.com/economy-contradicts-democracy-russian-markets-explode-amid-political-sabotage/ https://www.koparunescape2gold.com/economy-contradicts-democracy-russian-markets-explode-amid-political-sabotage/#respond Tue, 21 Sep 2021 13:01:51 +0000 https://www.koparunescape2gold.com/economy-contradicts-democracy-russian-markets-explode-amid-political-sabotage/ Authors: Divyanshu Jindal and Mehek Bhanu Marwaha * The USD (United States dollar) has been the dominant currency in the world since the end of World War II. The dollar has also been the most sought-after reserve currency for decades, which means it is held by central banks around the world in significant amounts. The […]]]>

Authors: Divyanshu Jindal and Mehek Bhanu Marwaha *

The USD (United States dollar) has been the dominant currency in the world since the end of World War II. The dollar has also been the most sought-after reserve currency for decades, which means it is held by central banks around the world in significant amounts. The dollar is also primarily used in cross-border transactions by nations and businesses. Without a doubt, the dominance of the US dollar is one of the main reasons for the influence of the United States on public and private entities operating around the world. This unique position not only makes the United States the leader in the financial and monetary system, but also provides unparalleled leverage in the enforcement capacity to shape decisions made by governments, businesses and institutions.

However, this dynamic is undergoing gradual and visible changes with the emergence of China, the slowdown in the American economy, the independent political affirmation of the European Union, the Russian-American detachment and the growing voices around the world for create a polycentric world and financial system in which hegemonic capacities can be weakened. The world is now witnessing attempts and ambitions of de-dollarization, as well as the rise of digital or cryptographic currencies.

With Russia, China and the EU leading the de-dollarization process, one has to wonder if India, currently among the most dollarized countries (in invoicing), will take inspiration from global trends and push towards de-dollarization as good.

Why dedollarization?

The dominant role of the dollar in the global economy gives the United States a disproportionate influence over other economies. As international trade needs a payment and financial system to take place, any nation in a position to dictate the conditions and policies of these systems can create disruption in trade among other players in the system. This is how the imposition of sanctions works in theory.

The United States has long used the imposition of sanctions as a tool to achieve its objectives and foreign policy, which involves restricting access to United States-led services in the areas of payment and transaction processing. financial.

In recent years, several countries have started to oppose unilateral decisions taken by the United States, a trend that accelerated under the tenure of former President Donald Trump. He withdrew the United States from the JCPOA agreement between Iran and the United States, aimed at bringing Iran into compliance with nuclear discipline and non-proliferation. Although the United States is pulling out, other signatories like the EU, Russia and China have expressed dissatisfaction with the United States’ unilateral position and have remained committed to the deal and called for continued commitments. with Iran in trade and aid.

Likewise, the sanctions imposed on Russia following the Crimean conflict in 2014 did not find the reverberations among the allies to the extent that the United States had wished. While EU members had switched to INSTEX (Trade Support Instrument) which acts as a special vehicle to facilitate non-USD trade with Iran in order to avoid US sanctions, countries of both the EU and Germany continue to have close trade ties with Russia, and the EU remains Russia’s largest investor as well as Russia’s largest trading partner, with trade taking place in euros rather than dollars .

In addition, despite the close relationship between the US and the EU, the EU has launched its own de-dollarization campaign. This became more explicit when earlier this year the EU announced its intention to prioritize the euro as an international and reserved currency, in direct competition with the dollar.

Trajectories of the Russian, Chinese and EU de-dollarization push

Russia has become the nation with the most vigorous policies geared towards de-dollarization. In 2019, then Russian Prime Minister Dmitry Medvedev called on Russia’s partners to cooperate towards a mechanism for switching to the use of national currencies for transactions between the countries of the Shanghai Cooperation Organization. (OCS). It should be noted that in the Eurasian Economic Union (EAEU), which functions as a trading bloc led by Russia, more than 70% of settlements are made in national currencies. In addition, in recent years Russia has also moved to domestic currency settlements with India (for arms contracts) and the two traditionally strong defense partners aim to explore technology as a means of national currency payment. .

Russia’s pressure to pull away from the US currency can also be seen in the transformative nature of Russia’s foreign exchange reserves where Russia for the first time had more gold reserves than dollars according to 2018 data ( 22 percent dollars, 23 percent gold, 33 percent Euros, 12 percent Yuan). According to the statement by the Russian finance minister in 2021, Russia aims to hold 40% euros, 30% yuan, 20% gold and 5% each of Japanese yen and British pound. By comparison, China holds a significant amount of dollar-denominated assets as foreign exchange reserves (50-60%) and the United States is its main export market with which to trade mostly in US dollars. In addition, Russia has also led the momentum by creating its own financial messaging system – SPFS (The System for Transfer of Financial Messages) and a new national electronic payment system – Mir, which has seen an exponential increase in its use.

While China-Russia trade is significantly dependent on the euro instead of their own national currency (although the use of national currencies is slowly increasing), instead of pushing the Chinese national currency into renminbi (RMB), Beijing aims to establish itself as the first nation to issue a sovereign digital currency, which would help China make cross-border payments without relying on U.S. financial systems. Thus, for China, digital currency appears to be the way forward to counter the dominance of the dollar as well as to increase its own weight by paving the way for an alternative global financial system operating in digital currencies. It should be noted here that the EU has succeeded in internationalizing the Euro and this can be seen in the fact that EU-Russia trade as well as Russia-China trade is now mostly done in euros.

Will India follow?

The dynamics of the Indian economy with the dollar are different from that of other major economies in the world today. Unlike China or Russia (or the EU and Japan) which hold large dollars, India’s reserve does not result from an export surplus. While others accumulate dollars from their trade surplus earnings, India maintains a large reserve of foreign exchange even though India imports less than it exports. In the case of India, dollar reserves come from the injection of foreign direct investment (FDI) and foreign portfolio investment (REIT), reflecting the confidence of foreign investors in the growth prospects of India. However, accumulating dollar reserves through this route (which helps offset the current trade deficit encountered), India remains vulnerable to policy changes by the monetary policies of other countries beyond India’s control. For example, it has often been pointed out that a tightening of US monetary policy leads to capital outflows (capital flight) from India, which has a negative impact on India.

New Dehi has long resisted a surge in de-dollarization. In 2009, when Russia and China launched the push via the BRIC mechanism (Brazil, Russia, India, China), it was argued that New Delhi would not want to upset Washington, especially after the signing of the historic agreement. on the American-Indian civil nuclear power. signed just a year earlier in 2008 – for full civilian nuclear cooperation between the two nations.

In addition, currency convertibility is an important part of global trade because it opens up trade with other countries and allows a government to pay for goods and services in a currency that may not be its own. the buyer. Non-convertible currency creates difficulties to participate in the international market because transactions require longer processing routes (which, in the case of dollar transactions, are controlled by US systems).

Like the Chinese renminbi, the Indian rupee is not yet fully convertible in the foreign exchange markets. While this means that India can control its foreign debt burden and the inflow of capital for investment purposes in its economy, it also means difficult access to capital, less liquidity in financial markets and less business opportunities.

It can be argued that just like in the case of China and Russia, India may also consider having a digital currency in the near future, and some signs of this are already visible. India may also consider having an increased share of euros and gold in its foreign exchange reserves, a method currently used by China and Russia.

Conclusion

More and more voices today point to the arrival of the Asian age (or century). With China now the world’s largest economic power, the slowing US economy and the emergence of a growing polycentric structure in the global economy, the dollar’s dominance is doomed to change. In order for global systems to keep pace with the changing economic order, structural changes such as the control of major economic organizations (such as the IMF and the World Bank) will become increasingly desirable.

With a growing number of countries now turning to digital currencies and considering a change in the composition of their foreign exchange reserves, a general trend is now visible although this would not mean the end of the dollar’s dominance in the immediate future. . As oil and gas trade in international markets also begins to shift from the dollar, the geopolitical balance of power is expected to undergo a shift after decades of US domination.

Major geopolitical players like China, Russia and the EU have already started their journey to counter the dominance of the dollar and the chains of influence of the United States over the political decisions that accompany it. According to Chinese media, rebuilding Afghanistan after the US withdrawal may also accelerate the global de-dollarization push, as countries like Saudi Arabia may seek to establish funds to help Afghanistan in other currencies. than the dollar. Thus, conflict zones highlight another avenue where the de-dollarization push will find a testing arena in times to come.

India has several options to start its de-dollarization process. From Russia-India transactions, trade with Iran, EAEU, BRICS and SCO members in national or digital currencies may also become a reality in the near future. Given India’s current dependence on the dollar, it must be determined whether the United States views India’s move towards de-dollarization as a direct challenge to US-Indian relations or accepts it as a change in global realities.

*Mehek Bhanu Marwaha is a Masters student in Diplomacy, Law and Business at OP Jindal Global University, India. His research interests focus on foreign policies and Indian and Chinese trade relations.


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IMF has role to play in Sri Lanka after framework decided: Jayasundera https://www.koparunescape2gold.com/imf-has-role-to-play-in-sri-lanka-after-framework-decided-jayasundera/ https://www.koparunescape2gold.com/imf-has-role-to-play-in-sri-lanka-after-framework-decided-jayasundera/#respond Tue, 21 Sep 2021 04:19:02 +0000 https://www.koparunescape2gold.com/imf-has-role-to-play-in-sri-lanka-after-framework-decided-jayasundera/ ECONOMYNEXT – The International Monetary Fund (IMF) will “certainly” have a role to play in Sri Lanka’s economic recovery after Covid-19, but that will be after authorities formulate the policy framework, said President PB Jayasundera’s secretary . Speculation about the transfer of the administration from President Gotabaya Rajapaksa to the IMF is on the rise […]]]>

ECONOMYNEXT – The International Monetary Fund (IMF) will “certainly” have a role to play in Sri Lanka’s economic recovery after Covid-19, but that will be after authorities formulate the policy framework, said President PB Jayasundera’s secretary .

Speculation about the transfer of the administration from President Gotabaya Rajapaksa to the IMF is on the rise due to the risk of sovereign debt default and a possible collapse of the rupee. However, the government denied that it was going to the global lender.

Jayasundera, the country’s top official and former finance secretary who has dealt with many of the IMF’s past programs, said there was nothing the IMF could do except write off foreign exchange reserves.

“The IMF will not be there to buy debt,” Jayasundera said in an interview with EconomyNext. “Everyone will ask ‘show us your plan’.”

“So if the plan is compelling, everyone has a role to play in that plan. The IMF certainly has a role to play. But that is not a role in granting a loan.

Sri Lankan officials Podujana Peramuna (SLPP) said the government’s reluctance to approach the IMF is now due to the adverse effects of the global lender’s terms, including rising state revenues and falling currencies. that will hit people hard in 2024 when Sri Lanka holds the presidency polls.

An IMF loan is accompanied by monetary and fiscal targets or quantitative performance criteria (PC) according to which loan tranches are released to the central bank.

The loans are then repaid by fixing the exchange rate and collecting reserves through a “strong lateral convertibility commitment” or by buying dollars in the market.

This can be easily done as long as the money is not printed and liquidity is withdrawn (central bank credit is reduced), analysts say.

The latest IMF program, however, contained a domestic inflation index as CP that was as high as 8%, allowing the central bank to print money and create currency shortages and miss the targets of currency reserve.

The program also allowed the central bank to manipulate yields far down the yield curve by abandoning a “note-only policy” and buying bonds to monetize past deficits, critics said.

Sri Lanka’s economy is now grappling with a growing budget deficit and heavy external debts as it also faces a forex crisis, Finance Minister Basil Rajapaksa told parliament.

The government maintained that it would repay maturing debt and avoid a sovereign default with unrelated inflows.

After quitting the IMF program in 2019, Sri Lanka cut taxes and printed more money as part of President Gotabaya Rajapaksa’s “Vistas of Prosperity”.

Former central bank governor WD Lakshman said in his farewell press conference that he had played a role in developing the economic framework and had been invited to the central bank to bring a ideological support. He had previously served on a presidential commission on taxation.

Now the government is formulating a longer-term economic plan associated with a post-Covid-19 economic recovery.

Jayasundera said the type of stimulus package the government is developing focuses on tackling fiscal issues, external finances and struggling sectors and turned them into “smarter economic activities.”

“These issues need to be resolved,” Jayasundera said.

“A lot of people think it’s just a matter of sitting down with the IMF and that the IMF will come in and provide conditional funding.”

“But the IMF is just a bailout funding agency. This is why the IMF also helps the member country to supplement its reserves. But we also need to have additional activities to build confidence and put these stimulus packages in place anyway. “

The IMF granted a loan of 2.4 billion in 2009 to reduce its budget gap and stabilize the currency and interest rates.

The 2009 program did not include an inflation target as one of the performance criteria in direct conflict with the foreign exchange reserves target which required anchoring, but a domestic reserve currency target which was more complementary to the objective of reserves.

To tightly control liquidity injections and eliminate any anchor conflicts, analysts say Sri Lanka needs a program with a gradually lowered cap on domestic central bank assets as a performance benchmark, where the currency reserve is only an indicative target.

Such a program will automatically stabilize the exchange rate and anchor inflation outward.

But Sri Lanka is now suffering from an unprecedented increase in central bank credit that triggered a decline in foreign exchange reserves as liquidity turned into external demand in the credit system. Analysts say reserves are at levels that make it difficult to peg the currency believably.

Following a tax cut in December 2019 and a sharp drop in the currency in March 2020, Sri Lanka secured downgrades, locking itself into capital markets.

Analysts have warned Sri Lanka to watch out for further downgrades as domestic central bank assets continue to rise.

Jayasundera said the government itself was implementing many reforms, including digitization of taxation, customs reforms, and legal reforms of civil and criminal administrative and trade laws.

“Now these things are happening. Now people are only worried that Covid-19 is delaying a lot of reforms, ”he said. (Colombo / September 21/2021)


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What did Nixon do 50 years ago that still haunts us today? This is not the Watergate – InsideSources https://www.koparunescape2gold.com/what-did-nixon-do-50-years-ago-that-still-haunts-us-today-this-is-not-the-watergate-insidesources/ https://www.koparunescape2gold.com/what-did-nixon-do-50-years-ago-that-still-haunts-us-today-this-is-not-the-watergate-insidesources/#respond Sun, 19 Sep 2021 22:03:38 +0000 https://www.koparunescape2gold.com/what-did-nixon-do-50-years-ago-that-still-haunts-us-today-this-is-not-the-watergate-insidesources/ On August 15, 1971, President Richard Nixon decreed that the US dollar would no longer be redeemable for gold owed, even to foreign governments. This bad decision was a desperate attempt to avoid the consequences of previous bad decisions. Nixon has decided to end the convertibility of gold. He claimed it was only temporary, but […]]]>

On August 15, 1971, President Richard Nixon decreed that the US dollar would no longer be redeemable for gold owed, even to foreign governments. This bad decision was a desperate attempt to avoid the consequences of previous bad decisions.

Nixon has decided to end the convertibility of gold. He claimed it was only temporary, but his executive order was a dishonorable breach of US government obligations.

Here is a brief history of the past bad decisions that led to Nixon’s very bad decision.

Nixon’s action came after a long string of bad policy decisions dating back to 1792, when the Coinage Act fixed the price of silver in gold, giving money holders unearned purchasing power.

Then, in 1834, the law changed, transferring wealth from owners of silver to owners of gold. The former were usually farmers and artisans who held money. These were usually the rich, who deposited gold in banks

In 1861, the government declared that paper money was not exchangeable for metal. In 1862, the government issued the famous “Greenbacks,” and in 1863, federally chartered banks could issue sunk banknotes. Declared legal tender, creditors had to either accept them or waive payment.

After the civil war, the government resumed cash payment, but created more mischief. The Coinage Act of 1873 effectively demonetized money. Farmers and artisans are suffering further losses and now have to pay gold debts.

The “crime of 73” was still in the minds of the 1896 election. William Jennings Bryan ran against William McKinley. Bryan wanted a return to the bimetallic system. McKinley was for the gold standard. McKinley won.

But Bryan resurfaced in the Woodrow Wilson administration and was instrumental in passing the Federal Reserve Act in 1913, giving the government a monopoly on issuing currency.

The Federal Reserve (the Fed) would have been created to stabilize the economy. The real result has been that the economy has been destabilized. The interest rate first went up and then went down. The Fed, being the lender of the last appeal, tempted the banks to speculate with this moral hazard – the removal of interest rates allowed them to have cheaper credit.

To avoid bank runs, President Franklin Roosevelt imposed another bad decision. He said it was a crime to own gold, nullifying all contractual clauses providing for payment in gold (except to foreign governments). The most conservative savers were forced to buy government bonds.

At the end of World War II, the Bretton Woods system was another bad policy decision. Other countries have had to treat the US dollar as if it were gold. Everyone assumed, especially US government officials, that this system was in the best interests of the United States. In fact, it was designed by Harry Dexter White, who later turned out to be a tool of the Soviet Union.

Indeed, the United States abused its “exorbitant privilege”, and some countries began to exchange their dollars for gold. Gold coming out of the US Treasury has accelerated. Nixon reacted to this crisis by ending the repayment of the dollar. He may have stopped gold withdrawals, but he accelerated public and private debt.

Today, central planners are redoubling their efforts to avoid debt collapse. Our monetary masters buy assets – billions and billions of assets. They think this will somehow shake off the unease that has persisted since the 2008 financial crisis.

And the next crisis may already be brewing. As the Fed buys treasury bills from banks, it simultaneously engages in reverse repurchase transactions. As part of the reverse repo, the Fed borrows liquidity from the banks, giving them treasury bills as collateral. It’s understood? The Fed buys bonds from banks, then turns around and temporarily sells the bond back to them (the reverse repo is a short-term contract).

Instead of central Fed planning, a gold standard is simpler and better. We the people should have the right to hold gold coins or bank deposits. This choice is essential for setting interest rates in a free market.


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A new strategy for Ukraine https://www.koparunescape2gold.com/a-new-strategy-for-ukraine/ https://www.koparunescape2gold.com/a-new-strategy-for-ukraine/#respond Sun, 19 Sep 2021 12:50:34 +0000 https://www.koparunescape2gold.com/a-new-strategy-for-ukraine/ In the Brundtland Report, the United Nations defined sustainable development as development that meets current demands without compromising the ability of future generations to meet theirs. It is based on the assumption that resources are finite and should be used sparingly and wisely to ensure that there are enough for future generations without lowering the […]]]>

In the Brundtland Report, the United Nations defined sustainable development as development that meets current demands without compromising the ability of future generations to meet theirs. It is based on the assumption that resources are finite and should be used sparingly and wisely to ensure that there are enough for future generations without lowering the current standard of living. A socially responsible society must prioritize environmental conservation and the dynamic balance of human and natural systems.

Pillars of sustainability

The environmental, social and economic pillars make up the concept of sustainability, which is sometimes known as profits, planet and people informally. These are particularly important in terms of the sustainability of the company and the activities of the company.

The most frequently discussed aspect is the protection of the environment. As part of a supply chain, it is about reducing the carbon footprint, water consumption, non-decomposable packaging and unnecessary operations. These procedures can be both cost effective and beneficial to the bottom line, as well as crucial for environmental sustainability.

Social development involves treating people fairly and ensuring that employees, stakeholders and the society in which a business operates are treated in a responsible, ethical and sustainable manner. More tailored benefits, such as higher maternity and paternity benefits, flexible hours and learning and development opportunities, could help achieve this goal. Companies should, for example, use a sustainable workforce, which implies mature employees who are well paid and able to work in a safe atmosphere.

Economic development is probably the simplest type of long-term sustainability. A business must be successful and generate enough money to be economically viable in the long run. The difficulty with this type of sustainability is finding a balance. Rather than making money at all costs, companies should try to make money in a way that is compatible with other aspects of sustainability.

What to do to quantify it?

The performance of the three basic principles as a whole, in particular a balanced treatment of the three, is used to assess sustainability. Although the three basic concepts of the Triple Bottom Line do not provide a measurement methodology by themselves, later approaches to sustainability assessment have attempted to do so. Despite the fact that there is no official universal sustainability assessment, several organizations are developing industry-specific methods and techniques to assess how social, environmental and economic principles work within a company. .

What impact does sustainable development have on companies?

Sustainability is becoming increasingly crucial for all businesses, regardless of industry. A sustainability strategy is considered necessary by 62% of executives today, and 22% believe it will be necessary in the future.

Simply put, sustainability is a business strategy for generating long-term value by considering how a business operates in its environmental, social and economic contexts. The concept behind sustainability is that establishing such metrics promotes the life of the business. Businesses are realizing the need to act on sustainability as expectations of corporate responsibility rise and transparency becomes more widespread.

Today’s leaders face a complex and unprecedented confluence of social, environmental, business and technological forces. This requires comprehensive and long-term management. Executives, on the other hand, are often reluctant to make sustainability a priority in their company’s business plan, mistakenly believing that the costs outweigh the benefits. Academic research and corporate experience, on the other hand, suggest the exact opposite.

Traditional business strategies focus on creating value for shareholders to the detriment of other stakeholders. Sustainable businesses are changing the business ecosystem by creating models that benefit all stakeholders, including employees, shareholders, supplier chains, civil society and the environment. The concept of “creating shared value” was pioneered by Michel Porter and Mark Kramer, who argued that businesses can generate economic value by recognizing and addressing social issues related to their business. Much of the strategic value of sustainability stems from the requirement to communicate with and learn from important stakeholders on a regular basis. A company with a sustainability agenda is better positioned to predict and respond to economic, social, environmental and regulatory changes as they occur through regular discussions with stakeholders and continuous iteration.

Additionally, businesses can benefit from the Triple Bottom Line approach to running a business in a variety of ways. Meeting the United Nations requirements for environmental sustainability is not only ethical and necessary, but it is also cost effective and allows for a better business model. In addition, sustainability allows a company to recruit employees, owners and consumers who are committed and share the same values ​​as the company’s sustainability goals. Therefore, the impact of sustainability on a company’s reputation and income can be favorable.

Why is sustainability important for students

Sustainability is a comprehensive field that provides students and graduates with knowledge about almost every element of human life, from business and technology to the environment and the social sciences. The essential skills with which a graduate leaves college or university are in high demand, especially in a modern society that seeks to dramatically reduce carbon emissions while discovering and developing future technologies. Politics, economics, philosophy and other social sciences, as well as the hard sciences, are all used to support sustainability.

As companies seek to comply with the new legislation, many corporate occupations at graduate level and above prioritize sustainability skills and environmental awareness. As a result, sustainability graduates will work in a variety of sectors including civic planning, environmental consulting (built and natural environments), agro-industry, non-profit management, business strategy, health assessment and planning, and even law and decision making. . Entry-level jobs are on the rise, and bachelor’s graduates can look forward to more options and opportunities in the years to come. Sustainability is one of the newer study programs, trying to combine social sciences, civic engineering, and environmental sciences with the technology of the future. When we hear the phrase “sustainability” we usually think of renewable energy sources, carbon reduction, environmental protection and a strategy to control the delicate ecosystems of our planet. In summary, sustainability is about preserving our natural environment, human and ecological health, while encouraging innovation and ensuring that our way of life is not compromised.

Even if you are not studying environmental science, sustainability is an important subject to learn. Sustainability is important for business majors to understand because it contributes to customer attractiveness and corporate social responsibility. Students studying agriculture, nutrition, and public health should focus on sustainability to understand how to feed a growing population with nutritious, high-quality food. Education majors pass their sustainability knowledge on to the next generation, preparing them to lead change. Each major has a link with the environment

The long term

As people continue to lead more sustainable lives due to the climate issue, there is a current trend towards sustainability as a more desirable goal for business. A positive climate impact across the entire value chain, a better influence on the environment, people and the atmosphere, and a useful contribution to society will most likely be expected from companies in the future. Companies will be held responsible for all parts of the industry, and any environmental damage or harmful emissions from production operations must be controlled or eliminated. In what is called a “circular economy”, it is also expected that resources will be reused to cope with global population growth. This transformation would allow one person’s waste to become another’s resource, resulting in significant waste reduction and a more efficient supply chain.

As we approach the start of a new year, we are keenly aware of the growing urgency of the climate movement, as well as the need to act to catch up with ambition. Not just for researchers and policy makers, but for everyone – business leaders, negotiators and communicators – there is still a lot of work to be done. We have a better chance of building a sustainable future if we can share what works.


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Sri Lanka’s leading scarcity-creating agency could help resume milk powder supplies https://www.koparunescape2gold.com/sri-lankas-leading-scarcity-creating-agency-could-help-resume-milk-powder-supplies/ https://www.koparunescape2gold.com/sri-lankas-leading-scarcity-creating-agency-could-help-resume-milk-powder-supplies/#respond Sun, 19 Sep 2021 07:45:44 +0000 https://www.koparunescape2gold.com/sri-lankas-leading-scarcity-creating-agency-could-help-resume-milk-powder-supplies/ ECONOMYNEXT – Sri Lanka’s Consumer Affairs Authority has blocked the entry of powdered milk into the market with its power to control prices and is expected to ease the restriction next week, which could allow imported supplies to reach the market , according to reports. Sri Lankan Minister of State for Consumption Lasantha Alagiyawanna had […]]]>

ECONOMYNEXT – Sri Lanka’s Consumer Affairs Authority has blocked the entry of powdered milk into the market with its power to control prices and is expected to ease the restriction next week, which could allow imported supplies to reach the market , according to reports.

Sri Lankan Minister of State for Consumption Lasantha Alagiyawanna had met with powdered milk importers on Saturday to discuss new price controls and agreed to an increase of Rs 200 per kilogram from the requested 350, said reported private television Derana.

It will be submitted to the government cost of living commission for approval.

Sri Lanka’s Consumer Affairs Authority had created serious hardship for people creating shortages of milk powder and liquefied petroleum gas with its price controls, forcing importers to suspend operations to avoid bankruptcy.

Price controls automatically lead to rationing and black markets.

Lakshman Weerasuriya, a member of an association representing powdered milk importers, told the TV station that the exit price of 945 rupees was set at a time when the rupee was at 186 per US dollar and milk powdered at $ 2.80 per kilogram.

The Sri Lankan rupee had collapsed due to money printing – mainly to pay civil servants’ salaries – which triggered currency shortages and excessive imports.

“Although the US dollar is listed at 203 rupees in banks, we buy at 238 rupees,” he said. “A ton of powdered milk is 4,100 to 4,200 US dollars.

“We asked for an increase of 350 rupees. We were offered 200 rupees. We hope to sign an agreement next week.

“But we said that was if the dollars were available at 203 rupees.”

Sri Lanka operates a deadly monetary arrangement without a coherent anchor called a “flexible exchange rate” where convertibility is suddenly and arbitrarily suspended from time to time, resulting in currency collapses.

At present, convertibility at 203 for the US dollar had been suspended for most commercial transactions by the central bank, which led the exchange rate to float in an over-the-counter market towards 230 for the dollar. American.

If the price increase is allowed and importers can import the product, a 400 gram packet of powder will increase from Rs 78 to Rs 458, according to the report.

The central bank printed money mainly to pay civil servants’ salaries after tax cuts in December 2019 created a large hole in the budget, which was made worse by a ban on imports of cars and other heavily taxed items.

Money was printed to fill gaps in the budget and also through price controls at bond auctions, where actual bids dried up like milk powder.

Newly appointed Central Bank Governor Nivard Cabraal lifted price controls within a day of taking office and there is expected to be some rate volatility as the market gets used to operating without controls and money begins to flow after the rate hike.

CAA executive director Thushan Gunewardene, who was in charge while the agency created most of the shortages, is expected to step down next week, according to the report.

Whole milk powder prices climbed to around $ 4,250 per tonne in March 2021, then fell to 3,500 levels. However, since August, prices are on the rise again.

The WMP contract for delivery in October (with no freight or associated charges) has already climbed to $ 3,720 according to Global Dairy Trade, an industry portal.

The US Fed also triggered a Powell bubble pushing up the prices of commodities, energy, precious metals and base.

Mainstream economists had said Fed chief Jerome Powell, who prints about $ 120 billion a month, was “delusional” for calling the soaring commodity prices “transient” and dismissing any connection to mass. rapidly expanding monetary policy.

Powell had unpaid excess reserves, a key collateral that had previously shielded America’s credit system from the worst effects of Keynesian cash injections. (Colombo / September 19/2021)


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