Foreign bank market – Arab Center http://arabcenter.net/ Sat, 15 Jan 2022 20:00:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://arabcenter.net/wp-content/uploads/2021/05/cropped-icon-32x32.png Foreign bank market – Arab Center http://arabcenter.net/ 32 32 Is the IMF ready for the next emerging market debt crisis? https://arabcenter.net/is-the-imf-ready-for-the-next-emerging-market-debt-crisis/ Sat, 15 Jan 2022 20:00:07 +0000 https://arabcenter.net/is-the-imf-ready-for-the-next-emerging-market-debt-crisis/

It is said that financially troubled emerging market economies approach the International Monetary Fund (IMF) for its conditional loans with as much enthusiasm as a patient visits his oncologist.

This explains why, over the past two years, emerging market economies devastated by the pandemic have borrowed relatively little from the IMF. With the world awash in cash following massive note printing by the Federal Reserve and the European Central Bank, why should they have to submit to IMF conditionality when they could finance themselves so easily on the international capital market?

With the Federal Reserve now on the cusp of a credit tightening cycle to put the US inflation genie back in the bottle, all of that is about to change for emerging economies. In a more difficult economic and international liquidity environment, they will need very substantial financing from the IMF to cover their deficits and repay their creditors.

A key question in 2022 will be whether the IMF will be adequately funded and whether it will have learned from its ill-fated past large-scale lending programs to Argentina and Greece to play its role as lender of last resort effectively. to emerging markets.

The main reason to believe that the international borrowing environment will soon deteriorate is that the world’s major central banks will have to start raising interest rates seriously to curb inflation. This is especially the case when you consider that interest rates have been allowed to get so negative in inflation-adjusted terms. With consumer price inflation in the United States now runs at about 7% and with policy rates close to their zero limit, the Fed will have to do a lot of hard work to get inflation under control.

If the Fed is indeed to raise interest rates this year by more than three times what it currently anticipates, one should expect a strong capital inversion away from emerging market economies, as happened during so many previous Fed tightening cycles. Emerging market economies may also find that they will have to deal with lower international commodity prices and tougher export markets if Fed interest rate hikes derail the global economic recovery in bursting the current asset price and credit market bubbles.

Still in the midst of the pandemic, public finances in emerging markets seem particularly vulnerable to a deterioration in the economic environment and global financial markets.

This likely means that emerging market economies will soon face severe balance of payments pressures as domestic and foreign investors question these countries’ public finances and send their money overseas. This is likely to prompt many countries to come knocking on the doors of the IMF for large bailout loans, as they are rejected by the international capital market.

A serious problem for the IMF is that the renewed demand for its large-scale support will become at the same time that the IMF will have difficulty in being reimbursed by Argentina, beneficiary of the Biggest IMF loan ever. This is sure to raise questions about the IMF’s assertion that it is not putting American taxpayers’ money at risk as well as the IMF’s lack of success in its previous large-scale lending programs with countries like Argentina and Greece.

If the IMF is to receive from its members the financial support necessary to carry out effectively its role as lender of last resort to the world economy, it will have to give assurances that it will avoid repeating the mistakes of its previous programs of large-scale lending. In particular, he will have to explain how he will ensure that there are adequate controls to prevent his money from being used to finance capital flight or to bail out private creditors when the country might have a solvency problem as opposed to to a liquidity problem.

Especially now that emerging market economies represent about half of the world economy, it is to be hoped that the IMF will be able to make amends in such a way as to reassure its main shareholders. Because if ever the world will need the IMF to help manage a global emerging market debt crisis, it will likely be in the next round of global liquidity tightening.

Desmond Lachman is a Senior Fellow at the American Enterprise Institute. He was previously Deputy Director of the Policy Development and Review Department at the International Monetary Fund and Chief Emerging Markets Economic Strategist at Salomon Smith Barney.

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Krung Thai Bank Public: Krungthai to revolutionize foreign equity investment by offering DR representing global tech stocks Alibaba and Tencent https://arabcenter.net/krung-thai-bank-public-krungthai-to-revolutionize-foreign-equity-investment-by-offering-dr-representing-global-tech-stocks-alibaba-and-tencent/ Wed, 12 Jan 2022 10:56:06 +0000 https://arabcenter.net/krung-thai-bank-public-krungthai-to-revolutionize-foreign-equity-investment-by-offering-dr-representing-global-tech-stocks-alibaba-and-tencent/

Krungthai is set to take foreign equity trading on the Thai Stock Exchange to the next level by offering Thailand’s first Certificate of Deposit (DR) representing shares of global technology companies, Alibaba and Tencent, in 2022 after the filing of the green light by the Securities and Exchange Commission (SEC). This will allow retail investors easier access to stocks of top foreign companies with a minimum investment of just 1 DR.

Rawin Boonyanusasna, Senior Executive Vice President, Head of Global Markets Group at Krungthai Bank, said that Krungthai has always been committed to developing financial products and services that cover all the diverse needs of clients, including the needs related to savings and to investment. The bank is now preparing to issue and offer a Certificate of Deposit (DR) representing foreign common stock for the first time in Thailand. The DR will represent the stocks of global technology companies such as Alibaba and Tencent and give Thai investors, especially individuals, the opportunity to invest in foreign stocks in a convenient way through the Thailand Stock Exchange, just like trading in Thailand. local stocks, without having to open an offshore trading account.

“The issuance and offering of this DR is an upgrade of our investment product line. It eliminates several limitations on foreign equity transactions faced by Thai investors, in particular its affordability. currently quite complicated to trade foreign stocks. Investors must open an offshore trading account, there is a minimum investment requirement, and trading fees are high. With DR, however, investors can invest in foreign stocks using the local trading account they already have. The minimum investment requirement is 1 DR and they can trade in Baht, eliminating the need for currency conversion. This simplifies and makes offshore investments more accessible to Thai investors. The bank, as the DR issuer, will purchase securities offshore, list them on the Thailand Stock Exchange and notify investors of new developments. They relate to actions. When the dividend payment is made to the bank, it will credit the dividend after deduction of expenses to the DR holders, ”said Rawin.

The bank has found shares of Alibaba and Tencent attractive to investors because they are global technology stocks that are attracting a lot of interest from Thai and foreign investors. Their liquidity is high, with an average daily trading volume still in the top 5 on the Hong Kong Stock Exchange. Additionally, in 2021, stock prices on the Hong Kong Stock Exchange were basing and much of the bad news has already been incorporated. At present, the bank has already obtained authorization from the SEC to be a DR Issuer and is currently in the process of additional filing. The DR is expected to be sold in an initial public offering (IPO) in early 2022.

Besides the DR representing Alibaba and Tencent stocks, the bank plans to issue DRs representing more popular stocks and ETFs on other exchanges, so that Thai investors can take advantage of more diversified investment options in the markets. global markets for better risk diversification and increased chances of obtaining higher returns.

Marketing Strategy Team

January 12, 2022

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IMF Warns of Turbulence When US Interest Rates Rise; unemployment drop in the euro zone – business live | Business https://arabcenter.net/imf-warns-of-turbulence-when-us-interest-rates-rise-unemployment-drop-in-the-euro-zone-business-live-business/ Mon, 10 Jan 2022 10:44:06 +0000 https://arabcenter.net/imf-warns-of-turbulence-when-us-interest-rates-rise-unemployment-drop-in-the-euro-zone-business-live-business/



The US Federal Reserve could cause market turmoil if it tightens monetary policy this year Photo: Joshua Roberts / Reuters

Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.

Turbulence could approach as the US central bank prepares to cancel its massive stimulus package, and emerging economies are said to be in the forefront.

the International Monetary Fund this morning warned that emerging markets could suffer a painful fallout once the US Federal Reserve begins to tighten monetary policy. With US inflation hitting near 40-year highs, US interest rates may soon rise.

This fallout could include the influx of capital out of emerging markets, causing their currencies to fall. This would be particularly serious for countries with high debt or high inflation.

The IMF explains in a new blog post this morning:


Widespread wage inflation in the United States or persistent bottlenecks could push prices up more than expected and fuel expectations of faster inflation. More rapid Fed rate hikes in response could shake financial markets and tighten financial conditions globally.

These developments could be accompanied by a slowdown in demand and trade in the United States and could lead to capital outflows and currency depreciation in emerging markets.




IMF report shows how tightening US monetary policy is affecting emerging markets

Photograph: IMF

The Fed is on track to end its asset purchase program in March and plans to hike interest rates three times this year.

The minutes from his December meeting show he may soon begin to reduce his balance sheet, known as quantitative tightening (QT), news that rocked markets last week.

Such a tightening could have more serious implications for vulnerable countries, adds the IMF:


In recent months, emerging markets characterized by high public and private debt, currency risks and lower current account balances have already seen their currencies move more strongly against the US dollar.

The combination of slower growth and high vulnerabilities could create unfavorable feedback loops for these economies.

So, as the Fed looks hawkish and the omicron hits supply chains and pushes costs up, policymakers in emerging markets need to brace for a storm.

Several emerging economies, such as Brazil, Russia and South Africa, have raised interest rates in 2021, due to high inflation.

But more action may be needed. Those with high debt denominated in foreign currencies should seek to reduce or hedge that exposure, while those with high debt may need to cut spending or raise taxes more quickly, according to the IMF.

Such a “fiscal tightening” would of course weigh on growth and jobs, highlighting the dilemma facing emerging market politicians and central bankers.

Worryingly, the IMF is also warning that there could be bank failures in some weaker countries, saying:


For countries where corporate debt and bad loans were high even before the pandemic, some banks and weaker non-bank lenders may face credit problems if financing becomes difficult. Resolution regimes should be prepared.

The current Covid-19 pandemic is also threatening emerging markets – many of which have not benefited from the mass vaccination deployments seen in advanced economies.

The IMF concludes:


While the global recovery is expected to continue this year and into the next year, risks to growth remain high due to the continuing resurgence of the pandemic.

Given the risk of this coinciding with faster Fed tightening, emerging economies should prepare for possible economic crises.

Reuters News from the United States
(@ReutersUS)

IMF says emerging economies should prepare for Fed policy tightening https://t.co/EmqkUJmPLE pic.twitter.com/cpjvNbcymq


January 10, 2022

Agenda

  • 10am GMT: Eurozone unemployment figures for November
  • 3 p.m. GMT: US wholesalers inventories for November


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Liquidation of foreign investors hits record high in 2021 https://arabcenter.net/liquidation-of-foreign-investors-hits-record-high-in-2021/ Sat, 08 Jan 2022 16:10:00 +0000 https://arabcenter.net/liquidation-of-foreign-investors-hits-record-high-in-2021/

As in the previous three years, foreign portfolio investors also continued to sell on the Dhaka Stock Exchange in 2021.

Net sales by foreign investors hit an all-time high of Tk 2,648 crore in 2021, following the same level of Tk 2,606 crore in 2020, according to DSE data.

The continued liquidation of foreigners in the bull market and despite all efforts by the securities regulator to lure funds from foreign and non-resident Bangladeshi investors into the Dhaka and Chattogram stock exchanges frustrates market watchers.

They said some basic frustration has discouraged foreign investors who are serious about their freedom to enter and exit any position in shares of listed companies.

The closure of the stock exchange for more than two months during the first wave of Covid-19 in 2020 and the floor prices then imposed to stop the fall of the market, both criticized for having been against the spirit of the free market, have them discouraged in the Bangladeshi market.

Foreign investors, especially institutional ones, need to quickly exit any security or market regardless of the price, they said.

Moreover, the central bank’s cap on interest rates was not a move that free market fans appreciate.

On top of that, reasoned disclosures and incorrect accounting of some listed companies have long been a discouraging factor for foreign investors and recent developments including the push for more transparency in disclosures, accounts, corporate governance. , have not yet borne fruit for the market in terms of attracting foreign investors.

These are mostly local investors whose buying frenzy has allowed DSE indices to roughly double since mid-2020.

Foreign investors capitalized on market inflation in 2010 by selling overvalued stocks and returned in subsequent years to pick undervalued stocks after the stock market crash.

In 2018, following a decent market recovery and subsequent macroeconomic headwinds and political uncertainty, foreigners again became net sellers in the DSE.

Since then, the trend has persisted.

In 2021, foreign investors sold listed securities worth Tk 5,206 crore against their purchase of securities worth Tk 2,558, which were Tk 6,997 crore and Tk 3,890 respectively in 2020.

However, some foreign institutional investors like Asia Frontier Capital continue to hold DSE stocks, mostly blue chip stocks.

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Stock markets and Omicron: why investors don’t need to panic yet https://arabcenter.net/stock-markets-and-omicron-why-investors-dont-need-to-panic-yet/ Thu, 06 Jan 2022 21:33:28 +0000 https://arabcenter.net/stock-markets-and-omicron-why-investors-dont-need-to-panic-yet/ At a time when the third wave of Covid-19 has spread rapidly and several states have imposed restrictions, the stock markets have remained largely unaffected. As the number of active Covid cases fell from less than 10,000 on December 28 to around 90,000 on Wednesday, the benchmark Sensex jumped more than 2,400 points, or 4.2%, from 57,794 on December 30 to close at 60,223 Wednesday. Markets however saw a 1% correction on Thursday in line with global markets after the minutes of the US Federal Open Market Committee The December 14-15 meeting indicated a more Hawkish monetary policy.

Who invested?

While domestic institutional investors have remained strong bulls over the past six weeks, with foreign portfolio investors being net sellers, the recent recovery has been supported by an influx of REITs. Data from National Securities Depository Limited shows that in the past three trading sessions, REITs have invested a net amount of Rs 4,306 crore, compared to the net of over Rs 40,000 crore they have withdrawn. since November 22, 2021, amid indications that the U.S. Federal Reserve will tighten monetary policy.

Market participants say that the fact that the Reserve Bank of India can now postpone any plans to raise interest rates in India has provided another boost to the market.

Investors are also reassured that Omicron, while being a fast-spreading variant, causes less serious illness and state governments may not opt ​​for tough shutdowns that would hurt economic activity too much.

“Dow Jones sets a new all-time high when the daily number of Omicron cases surpassed one million in the United States may sound like a paradox, but it is a clear message from the market that the rapidly spreading and less virulent variant of the virus marks the beginning of the end of the pandemic. In addition, most countries do not impose new restrictions that impact economic activity, ”said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

What are the concerns?

As we saw on Thursday, markets are expected to experience bouts of volatility due to concerns about inflation, rising interest rates and increasing cases of Covid. The minutes of the meeting released by the Fed on Wednesday indicated that it may not only raise interest rates sooner than expected, but also reduce its holdings of assets to control inflation.

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The Dow Jones index fell 1.07% on Wednesday and the Nasdaq fell 3.3%. Following this, the Nikkei in Japan also fell sharply by 2.9%, and the Sensex by 1% cent (621 points) to close at 59,601.84 on Thursday.

Some fear that an earlier-than-expected rise in interest rates in the United States could result in a larger outflow of REIT funds, leading to a correction in emerging economies. It would also lead to a movement of funds from equities to debt securities which would lead to weakness in equities.


At the same time, if states impose lockdowns, the economy, which has experienced a fragile recovery, could be hit. Meanwhile, investors are also awaiting reports from the corporate sector on third quarter earnings. Market participants say all of these factors could keep the market volatile over the next two to three weeks.

Will the impact be different from what we saw in the previous wave?

Before hitting the panic button, investors need to look back and see how the markets traded during the second wave of Covid. Between March 10 and May 6, 2021, when active cases in India rose from around 20,000 to over 4.1 lakh, the Sensex rose from 51,279 to 48,253, or 5.9%. However, as the number of cases declined over the next month, the Sensex quickly recovered to a new high of over 52,000 in June. It increased further and reached an all-time high of over 62,000.

The question now for the market is: how far will Omicron hit the economy? “The economic impact should be less profound than that of the second wave, building on past / international experience. Our baseline scenario for GDP forecasts incorporates downside risks. Slower policy normalization (by the RBI) is likely to be accompanied by a gradual reduction in budget deficits, ”said Radhika Rao, senior economist, DBS Bank.

What should you do

If REITs remain buyers and domestic institutions continue to support the market, major stock indexes should continue to advance. Retail investors and mutual funds are expected to pump more money into the market, as in 2021; they’ve had a continuous flow of retail money through systematic investment plans. In addition, the financial system is still overflowing with liquidity. The Union budget in February and the RBI’s decision at the next political meeting will give new direction to the markets.

While markets may remain volatile over the next two to three weeks, depending on how quickly Covid is spreading, experts stress that investors should not panic. Fund managers say that while investors shouldn’t take excessive risk in lesser-known companies and in small-cap and new-generation companies, they should rebalance their portfolios appropriately. One fund manager said that if an investor is overweight equities then they need to shift some funds to hybrid funds. However, if an investor is underweight in equities, they may continue to invest in equities and look to invest in flexicap funds to gain diversified exposure.

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Why Nio Stock fell today https://arabcenter.net/why-nio-stock-fell-today/ Tue, 04 Jan 2022 21:02:04 +0000 https://arabcenter.net/why-nio-stock-fell-today/

What happened

After launching the first trading day of 2022 on a strong note, electric vehicle (EV) stock Nio (NYSE: NIO) reversed course on Tuesday and fell 5.4% by 1:30 p.m. ET. An analyst sees Nio stock doubling in 2022, but even that doesn’t appear to have sparked investor interest.

So what

German bank Analyst Edison Yu issued a bullish note on Nio on Jan.4, predicting that the electric vehicle maker’s stock would rebound sharply this year after a 2021 failure, mostly supported by new product launches. To name a few, Nio plans to begin deliveries of its flagship ET7 sedan in March and its all-new ET5 midsize sedan in September. Nio is also expected to unveil a sixth model this year and has aggressive plans to expand internationally, particularly in Europe.

Image source: Nio.

Yu believes these growth catalysts could take Nio shares to $ 70 apiece over the next 12 months, which implies a 109% rise from the share’s closing price on Jan. 3. So why haven’t Nio stocks taken off despite analysts’ huge price target? You might want to blame You’re here (NASDAQ: TSLA), at least partially.

Tesla just released massive fourth quarter delivery figures while Nio pulled it off just about Sales up 50% year-on-year in December. On the one hand, Tesla’s exceptional sales reflect strong demand for electric vehicles. On the other hand, Tesla’s rise to power is a direct threat to Nio, who is himself often referred to as the “Tesla of China”.

In addition, China cut subsidies for electric vehicles by 30% from January 1, which could undermine what has so far been one of the biggest competitive advantages for local electric vehicle manufacturers over domestic electric vehicle manufacturers. foreign companies like Tesla.

It is important to note here that although subsidies in China are available for electric cars sold only below a certain price that does not apply to Nio, customers using battery service as a service (BaaS ) de Nio are eligible for grants. BaaS offers Nio customers the option of saving up to $ 10,000 per car by purchasing cars without batteries and choosing instead to swap and recharge the batteries at Nio’s battery swap stations as needed. In short, lower subsidies could make Nio’s battery swap-compatible cars less attractive compared to their peers in terms of price.

Tesla is also proving to be a formidable competitor outside of China – Tesla has become the best-selling brand in Norway, also the first and only international market that Nio has ventured into so far.

Now what

With most EV inventories tumbling on Tuesday, Nio followed the tide. Investors now also want to see bigger things and bigger numbers of Nio to gauge whether and how quickly he can catch up with Tesla. That could mean higher volatility for Nio shares, but 2022 could potentially be a huge year for the EV stock if Nio starts to execute on his plans.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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Confused year for the stock market https://arabcenter.net/confused-year-for-the-stock-market/ Sat, 01 Jan 2022 03:29:11 +0000 https://arabcenter.net/confused-year-for-the-stock-market/

KARACHI:

The Pakistan Stock Exchange (PSX) had a tumultuous 365 day period in 2021 as, on the one hand, it was ranked among the best Asian stock exchanges but on the other hand, demoted from emerging markets to frontier markets by Morgan Stanley Capital. International (MSCI).

The stock prices of the top 100 companies listed on the PSX improved by 2% net in 2021, pushing the benchmark KSE-100 to 44,596.07 points at the close of the exchange on the last day of the year.

The stock market ended the year on a lackluster note despite obtaining the title of the second best performing market in Asia at the end of January 2021.

It posted record volumes of 2.5 billion shares (including futures trades) in a single day in May, compared to the daily average of 474 million shares recorded in calendar year 2021. .

On the flip side, the market posted the worst performance in 21 months on December 2, 2021, when the benchmark dipped 2,135 points or 4.7%.

It came after the country’s trade deficit hit an all-time high of $ 5 billion in November and yields on Treasuries suddenly rose, signaling an aggressive hike in the benchmark interest rate, which later turned out to be true.

The market started the year on January 1 with the benchmark at 43,755 points. It hit the lowest of the year at 42,780 points in March due to a spike in Covid-19 infections.

It recorded the year’s high at 48,726 points in June, the day the government presented an incentive-laden budget for the current fiscal year. The market reached this level after a four-year gap, which was last seen in June 2017.

“The market has got off to a good start with a (rapid) V-shaped recovery in the national economy,” said Tahir Abbas, head of research for Arif Habib Limited (AHL), speaking to The Express Tribune.

Read The PSX should reach 50,000 by the end of 2022

The third wave of the Covid-19 pandemic in the country and concerns about the nationwide lockdown and impact on the economy have not let the market thrive after the initial strong performance in late January.

The complete reopening of the economy after the shutdowns, increased worker remittances and optimism over the budget loaded with incentives to support the Covid-hit economy have brought the market back to a four-year high in June.

The stock market, however, failed to maintain the level after global commodity prices more than doubled, significantly boosting the country’s imports, which reached a record high of $ 8 billion in November.

The historic surge in imports from June 2021 began to consume the country’s foreign exchange reserves. As a result, demand for the dollar has skyrocketed in the interbank market to pay for rising imports.

This move triggered the rupee to depreciate again against the greenback, pushing inflation to a 21-month high of 11.5% in November and pulling the market down 4.7% (or 2 135 points) in a single day on December 2. 2021.

At the same time, the suspension of the International Monetary Fund’s (IMF) $ 6 billion loan program since June 2021 and the delay in its recovery have increased pressure on the rupee, which hit a record high of 178.24 rupees. December 29, up from 22- The month high of Rs152.27 hit in May, showing a depreciation of 17% in seven months.

Government and IMF teams reached a staff level agreement for the resumption of the lending program in November.

The IMF’s board of directors will be presented with the sixth review of the economy on January 12, 2022. Its approval will be followed by the release of the next loan tranche of $ 1 billion in January or February 2022.

The depreciation of the rupee, the high import bill, large trade and current account deficits and high inflation forced the central bank to aggressively increase the benchmark interest rate by 2.75 percentage points in October- December 2021 at 9.75%.

As usual, the high interest rate encouraged investors to shift their investments from risky stocks to safer term deposits in banks and impacted market performance.

Read more PSX wins 505 points on optimistic outlook

As the world enters 2022, optimism prevails about the expansion of business and economic activities and the return of the bullish trend in the stock market.

Experts predict a continued decline in global commodity prices, with a peak outside the benchmark interest rate of 10% in March 2022 and a return to stability in the rupee.

The local currency has recovered nearly 1% (or Rs1.73) over the past two days to Rs176.51 on Friday after hitting a record low of Rs178.24 on December 29, 2021.

Posted in The Express Tribune, January 1st, 2022.

Like Business on Facebook, to follow @TribuneBiz on Twitter to stay informed and join the conversation.


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Rupee registers highest one-day recovery after 31 session hiatus https://arabcenter.net/rupee-registers-highest-one-day-recovery-after-31-session-hiatus/ Thu, 30 Dec 2021 14:32:00 +0000 https://arabcenter.net/rupee-registers-highest-one-day-recovery-after-31-session-hiatus/
– AFP / File
  • The Pakistani rupee appreciates around 0.41% to settle at Rs177.51.
  • “This is the highest recovery after 31 sessions,” reports AHL.
  • The rupee has depreciated 12.67% since July 1, 2021.

KARACHI: The Pakistani rupee rebounded on Thursday, recovering sharply to Rs 177.51 against the US dollar in the interbank market after hopes of resuming the International Monetary Fund’s (IMF) $ 6 billion program boosted confidence among investors.

The local currency appreciated by around 0.41% (or Rs0.89) to settle at Rs177.51 on the interbank market. The local currency closed at an all-time low of Rs 178.24 against the greenback on Wednesday.

According to Arif Habib Limited, the Pakistani rupee rallied 0.41% overnight, closing at 177.51. “This is the highest recovery after 31 sessions,” added the brokerage.

The rupee has maintained its downtrend for the past seven months. It has lost 16.57% (or Rs 25.24) so ​​far, from the 22-month high of Rs 152.27 recorded on May 14.

With a further rise of 0.41%, the rupee has depreciated 12.67% (or Rs19.97) since the start of the current fiscal year on July 1, 2021, data released by the central bank has revealed. .

Currency traders previously said that recent actions by the State Bank of Pakistan (SBP), namely the tightening of regulations on the purchase of foreign currency and the frequent injections of liquidity into the banking system, contributed to stabilize the rupee.

However, compliance with the conditions imposed by the International Monetary Fund (IMF) as a prior action before the sixth review of the extended $ 6 billion fund facility scheduled for Jan. 12 would be monitored for clues.

Traders are also likely to watch how the government reduces the trade deficit in the coming months.

Analysts expect the trade gap to widen further in the coming months, but the government is optimistic about the outlook for the trade balance amid healthy remittances.

“The expected developments in export and import activities imply that the trade balance could gradually improve over the next few months and stabilize at significantly lower levels in the second half of the current fiscal year,” said the Monthly economic update and outlook for December 2021, released by the finance division two days ago.

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“Indians will be able to receive money from abroad using UPI” https://arabcenter.net/indians-will-be-able-to-receive-money-from-abroad-using-upi/ Tue, 28 Dec 2021 18:37:17 +0000 https://arabcenter.net/indians-will-be-able-to-receive-money-from-abroad-using-upi/

NPCI International Payment Ltd (NIPL) recently signed a Memorandum of Understanding with Western Union to enable real-time payment to a bank account in India. NIPL is the international payments arm of the National Payments Corporation of India (NPCI) which was launched last year with the aim of exporting NPCI’s locally developed payments and technology offerings, such as RuPay and UPI, to foreign markets. In an interview, Ritesh Shukla, CEO of NIPL, talks about the new offering and designing solutions for Indians to send money overseas. Edited excerpts:

Can you tell us in detail how it will work?

Our partnership with Western Union and other players is to provide the best cross-border money transfer experience to over 30 million Indians living outside India. Currently, this experience is very fragmented for consumers because it requires incremental work.

This partnership will allow Western Union users as well as non-users to send money to India in a simplistic way using the recipient’s Unified Payment Interface (UPI) credentials. The sender can simply put the recipient’s UPI ID on the channel enabled by Western Union. Our agreement with Western Union will be based on UPI’s robust and innovative infrastructure that will extend a superior, fast and secure customer experience by allowing users in India to receive real-time international money transfers to their bank accounts. Indian expats or people of Indian descent (PIO) living across the world will be able to send money through the integrated Western Union and UPI channels to their friends and relatives using UPI ID. All eligible UPI member banks will be enabled for the service.

What will be the costs involved?

The fees / charges for a cross-border transaction are levied by the money transfer service provider in the overseas market and these charges are usually based on market dynamics and available channels. Our effort would be to work with Western Union to optimize costs while ensuring a superior customer experience. We will strive to make charges sustainable and more affordable in the long run.

When is this service likely to be operational?

We plan to launch the service by the second quarter of next year. This service will benefit millions of Indian citizens to receive money from abroad seamlessly.

Are you also looking to design solutions that allow customers to send money overseas?

We are working on a solution under the leadership of the Reserve Bank of India (RBI) to allow Indians to send money outside of India. Our solution will serve multiple use cases in retail payments for people who want to send money to family and friends overseas, pay education fees, or for any other purpose authorized by RBI. .

A recent study showed that Indians paid ??26,300 crore in exchange fees in 2020. Do you think that the launch of the real-time payment service to bank account by NIPL will lower this figure?

We are aware of the current challenges of cross-border remittance, including fees, fragmented user experience, lack of transparency, and long turnaround times. We work collaboratively with key stakeholders such as governments, regulators, fintech companies, service providers, stock exchanges and national switches to co-create market specific solutions.

As each geographic area has specific needs, payment solutions must be tailored to market needs and preferences.

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ICICI Securities, India’s # 1 Manager to Lead Equity Trading Rankings https://arabcenter.net/icici-securities-indias-1-manager-to-lead-equity-trading-rankings/ Mon, 27 Dec 2021 02:33:33 +0000 https://arabcenter.net/icici-securities-indias-1-manager-to-lead-equity-trading-rankings/

ICICI Securities Ltd. became the first Indian leader to top the investment banking deal tables in a record year for early offerings. Axis Bank Ltd. retains first place for debt since 2007.

For both equity and debt combined, the two Indian companies rank in the top five. The rest were foreign banks. Four of the top five were foreigners last year, with Axis Bank rounding out the list. The Mumbai-based lender was also in the top five in 2020.

Credit allocation through Dec. 21 to equity issue managers increased 4.1% from a year ago to 2.23 lakh crore, according to data from Bloomberg India League Tables. For debt or bond issues, it fell 27.9% to Rs 3.87 lakh crore.

It came as Indian companies broke previous records of money raised from initial public offerings in 2021 in a market filled with liquidity.

The share is based on the credit allocation (proportion of issue volumes or transaction size) credited to the lead manager.

Share issues

A total of 63 managers received credit allocations in 168 IPOs, the data showed, up from 102 in 2020.

ICICI Securities, Citi, Axis Bank, BofA Securities and Kotak Mahindra Bank account for over 46% market share for share issuance transactions, while the top 10 managers account for over 70% market share.

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