Nightlife

Tag: 2023

  • BRICS: CONSIDERATIONS AND IMPLICATIONS OF A SINGLE BRICS CURRENCY

    BRICS: CONSIDERATIONS AND IMPLICATIONS OF A SINGLE BRICS CURRENCY

    By Franco Macchiavelli

    Market Analyst at Admirals and Certified European Financial Advisor (EFA) (Nr 35591)

    5 September 2023

    The 15th BRICS Summit, hosted by South Africa in Johannesburg from 22 to 24 August, culminated in the widely anticipated announcement of a soon-to-be expanded BRICS bloc, with the admission of six new member countries to this economic grouping as from January 2024.

    In the build-up to this year’s BRICS Summit there has also been some speculation that the grouping might discuss the issuance of a joint currency to compete with the dollar as the reserve currency with world hegemony.

    However, this issue was not addressed during the event. South Africa’s representative stated that such an approach was never considered, and India’s foreign minister also dismissed the possibility.

    Data from the IMF’s 2023 World Economic Outlook shows that together, these five economies – Brazil, Russia, India, China, and South Africa – account for roughly 40 per cent of the world’s population and 20 per cent of global trade flows. Despite the logic behind the idea to introduce a new currency in place of the dollar, the truth is that this would be rather complicated to implement – at least in the short to medium term.

    If the idea were to come to fruition, there would be two main approaches:

    1. Create a new central bank that would issue a single currency to replace the national currencies of each of the five countries (Brazil’s real, Russia’s rouble, India’s rupee, China’s yuan and South Africa’s rand). However, this would require these countries to give up their monetary sovereignty, which would limit their ability to manage the value of their own currency according to their economic needs. To understand this better, if Brazil wanted to depreciate its currency to improve its exports, but the other countries did not agree, Brazil would not be able to make this decision unilaterally. Therefore, we are talking about an important risk in the management of each country and the different factors that affect its growth and economic and monetary management.
    2. 2. A different scenario would be to adopt the currency of one of the member countries as the BRICS’ own currency, such as China’s yuan. However, this would also present major challenges, as the remaining countries would again lose their monetary sovereignty, this time to China, which could limit their ability to make independent economic decisions. If for example China wanted to implement a rate cut to boost domestic economic growth, the remaining BRICS nations would be affected collaterally without having been able to influence China’s decision, also affecting the other economies that might not be experiencing the same characteristics and conditions as China.

    In short, both paths are complicated to pursue and present significant obstacles for member countries.

    What is certain, however, is that these countries aim to reduce their dependence on the dollar in the future. Currently, when the BRICS sell their products to the rest of the world, they receive payments in dollars and accumulate these dollar-denominated reserves. However, fluctuations in the value of the dollar over the years have posed a significant depreciation risk for these countries.

    Most of the BRICS have been accumulating dollar reserves for years, and with the effect of inflation, these have been affected because they have mostly not imported goods, but accumulated reserves.

    What would happen if instead of accumulating dollar reserves, they accumulated reserves in another currency through trade among the members themselves?

    This brings to mind the recent case of trade between Russia and India:

    India has been buying oil from Russia at a significant discount to the price in the West. However, these purchases have been paid for in rupees. So, if we talk in terms of trade, Russia sells oil to India and receives payment in rupees, but collaterally faces a significant currency risk, i.e., that rupees depreciate over time even more than the dollar.

    Moreover, rupees are only accepted in India and do not have the global hegemony to buy any asset across the world, which complicates the management of its international reserves, unlike the dollar, which is accepted globally in the purchase and sale of any good, asset or service.

    Ultimately, despite the search for alternatives to the dollar, replacing it with a new currency poses considerable challenges for the BRICS, and makes it unlikely to manifest itself in the near future due to the complexity of its implementation.

    Naturally the addition of six additional nations – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will multiply the complexities significantly.

    It will be interesting to see what impact the BRICS expansion will have on the global economy and geo-politics but for now the dollar will continue to be the dominant trading currency.

    Disclaimer: The views expressed in this article reflect those of the writer and does not represent the official view of the Eco-Enviro News Africa,magazine.

                                                                                                                                                                                                                   

     

     

     

  • The Essence of Ramadan and Its Heath Benefits

    The Essence of Ramadan and Its Heath Benefits

    By: Sadik Mohammed

    Ramadan is the holy month of fasting for Muslims, during which they abstain from food, drink and all others that were hitherto permitted them by Allah from sunrise to sunset as divine obligation.

    The month long fast serves as the Special Purpose Vehicle(SPV) for seeking forgiveness and nearness to Allah, their Lord who loves piety and righteousness.

    Spiritual and Moral Importance

    It is indeed an annual opportunity for Muslim to do stock taking, pursue moral and spiritual rejuvenation and seek for re-alignment with their Grand Creator.

    This is underpinned by learning to cultivate self-restraint, good manners and behavior, loving kindness through stepping up of charitable activities and doing additional supererogatory worship and prayers in addition to the five daily salat.

    These are all important towards drawing Muslims closer to their Lord, Allah and beefing up their spirituality for that matter.

    Socio-economic

    The Ramadan fast also has a socio-economic dimension. In the society we have the poor and the rich. In the houses of the rich they are not in want and have plenty to eat and could chose to eat as many times as they chose to.

    Conversely, in the house of the poor, even one square meal is sometimes a problem. How then does the rich also get to taste hunger and feel the pangs of it? Ramadan fasting is the answer.

    The Ramadan fast seeks to also inculcate sympathy in the rich for the poor which is good for the maintenance of social equilibrium.

    A society where the rich live in extravagance and affluence and are least sensitive to the plight of the poor, risk the generation of bad blood between the rich and the poor the resultant effects of which could be social tensions and undesirable conflict.

    Health Benefits of Ramadan Fast

    In addition to the foregoing religious and socio-economic significance, Ramadan is also associated with several health benefits. Here are five health benefits of Ramadan:

    Weight loss: Fasting during Ramadan can lead to weight loss, as the body uses stored fat for energy when it is not receiving food. However, it is important to maintain a healthy and balanced diet during non-fasting hours to avoid overeating and unhealthy weight loss.

    Improved insulin sensitivity: Fasting has been shown to improve insulin sensitivity, which can reduce the risk of developing type 2 diabetes. During Ramadan, the body’s cells become more responsive to insulin, which helps to regulate blood sugar levels.

    Reduced inflammation: Fasting has been shown to reduce inflammation in the body, which is linked to many chronic diseases such as heart disease, cancer, and Alzheimer’s disease.

    Improved mental health: Ramadan is also associated with improved mental health. Fasting has been shown to reduce stress, anxiety, and depression, and can improve overall mood and emotional wellbeing.

    Many people find that fasting during Ramadan increases their sense of spirituality and connection to their faith. This can provide a sense of purpose and meaning, which can have positive effects on mental health and overall wellbeing.

  • With participation of 600 speakers in over 160 dialogue sessions

    With participation of 600 speakers in over 160 dialogue sessions

    Abu Dhabi hosts the world’s largest investment forum

     Abu Dhabi, United Arab Emirates, 21 March 2023: The capital of the United Arab Emirates, Abu Dhabi, will be hosting the 12th edition of the Annual Investment Meeting (AIM Global 2023) to be held on May 8 to 10 under the theme “The Investment Paradigm Shift: Future Investment Opportunities to Foster Sustainable Economic Growth, Diversity and Prosperity” with over 600 high-level speakers participating in more than 160 dialogue sessions.

    Abu Dhabi’s hosting of the AIM Global for the first time, which is supported by the Ministry of Industry and Advanced Technology in partnership with the Abu Dhabi Department of Economic Development, is aligned with the emirate’s efforts to further strengthen its economic position in the region and to promote foreign direct investments among the countries of the world by consolidating investment opportunities aimed at sustainable development and leveraging digital technology.

    Dawood Al Shezawi, Chairman of the Annual Investment Meeting, said: “The Annual Investment Meeting, the largest investment forum, has succeeded throughout its previous editions in solidifying the position of the United Arab Emirates on the global investment map, and in pushing forward its progress over the next 50 years.”

    He added that organizing the 12th edition of the Annual Investment Meeting in Abu Dhabi, which has established itself as a preferred and thriving business and investment destination, is a result of its proactive ability and flexibility in dealing with changes and developments to stimulate and support appropriate events and talents, and providing innovative solutions to face current and future challenges.”

    He also stressed that they are continuously working to establish the foundations of a business system that provides opportunities for growth and prosperity for investors to achieve sustainable economic and social development goals.

    “The event provides businessmen and investors with the opportunity to meet, establish strategic agreements and partnerships, expand their businesses, and introduce new channels of work that are offered by the available investment sectors that are abundant in the emirate of Abu Dhabi and the entire United Arab Emirates,” Al Shezawi added.

    The Annual Investment Meeting brings together a high-level group of leaders, government officials, decision-makers, businessmen, major regional and international investors, key global companies and organizations, as well as smart city solution and technology providers and a number of startups and institutions financing small and medium-sized projects, over the course of three days.

    Its main purpose is to discuss how to better utilize technological innovations to augment investments in companies, encourage technology transfer, and increase competitiveness for countries to achieve economic growth through sustainable investments, and exchange views with governments to create stronger economic structures for investors and unify opportunities for the sustainable growth of the economy.

    This year’s 12th edition seeks to expand the scope of work by launching a range of activities that will benefit all of its participants. It will focus on two main tracks, Investment and Innovation & Technology, and on 10 key sectors, which include Agriculture, Energy, Technology, Infrastructure, Manufacturing, Tourism & Hospitality, Transportation & Logistics, Finance, Healthcare, and Education.

    The event agenda

    The Annual Investment Meeting has in its agenda a series of activities and programs, such as a specialized exhibition, investments roundtables, investment awards, startup awards, investor’s hub, investment destinations, B2B,G2B, G2G meetings, regional focus forums as well as pre-conference workshops.

    In addition, several side conferences and events will be organized and hosted, including “Make it in the Emirates”; “Invest in Abu Dhabi”; “Road to the World Investment Forum” in collaboration with the United Nations Conference on Trade and Development; “Entrepreneurs Investment Forum” with the United Nations Industrial Development Organization (UNIDO); “Bloomberg New Energy Finance Forum”; “Future Finance Forum” with the Union of Arab Banks; “World Local Production Forum” with the World Health Organization; “Tourism Investment Forum” with the United Nations World Tourism Organization (UNWTO); “Agriculture Technology & Food Security Investment Forum” hosted by the Food and Agriculture Organization of the United Nations; “Least Developed Countries Forum” in partnership with the World Association of Investment Promotion Agencies; “Finoverse Forum”; “Distressed and Alternative Investment Forum” with the DDC Financial Group; and “Advanced Manufacturing Investment Forum” to be hosted by UNIDO.

     Entrepreneurs Investment Summit (UNIDO)

    Entrepreneurs Investment Summit 2023, organized by the Arab Bank for Economic Development in Africa, the Union of Arab Chambers, and the Investment and Technology Promotion Office of UNIDO in Bahrain, aims to create a platform for promoting bankable investment opportunities led by entrepreneurs/SMEs and macro investments from African and Arab region.

    It also seeks to share best practices and experiences from Africa and the Arab Region on the means of stimulating and unleashing entrepreneurship and joint investments, and deliberate on the challenges, opportunities, threats, and the road forward towards achieving the Arab-African economic integration.

    The Future Finance Forum

    The Future Finance Forum, organized in collaboration with the Union of Arab Banks, will provide a platform for stakeholders from government, industry, civil society, and academia to engage in a comprehensive examination of the trends and challenges shaping the future of finance.

    The theme of the forum “Leveraging Innovative Technologies for Financial Inclusion and Sustainability” reflects the recognition of the critical role that financial innovation plays in promoting inclusive and sustainable development.

     Tourism Investment Forum(UNWTO)

    The UNWTO is organizing the Tourism Investment Forum following the unprecedented and extensive disruption caused by the COVID-19 pandemic in the tourism sector, which requires a quantum leap in tourism investments to better support and accelerate the implementation of the 2030 Agenda and the Sustainable Development Goals.

    There is growing consensus among tourism stakeholders as to how the future resilience of tourism will depend on the sector’s ability to balance the needs of People, Planet and Prosperity.

    In line with these goals, the Tourism Investment Forum provides an opportunity for governments, private sector investors, multilateral financial institutions, and development banks to enhance their coordination and combine their capacities and resources to turn priorities into investable projects by unlocking the potential of a new and redefined tourism investment approach.

     Bloomberg New Energy Finance UAE Forum

    The Bloomberg New Energy Finance UAE Forum discusses the dynamic shift in demand for traditional commodities such as oil, gas, and metals in light of the transition to a low-carbon economy, as newer commodities such as power, carbon, hydrogen, and even sustainable aviation fuels will see their landscape change. Participants will also address several questions, such as the role of “clean energy molecules” and what energy producers in the Middle East should expect.

    The forum will also present the results of the New Energy Outlook report and the various net-zero pathways that can emerge for countries and sectors, with the Middle East playing a role in supporting the pathways of other countries.

    Distressed and Alternative Investment Forum

    The DDC Financial Group’s Distressed and Alternative Investment Forum features two dialogue panels. The first, “The Role of Distressed & Alternatives in a Diversified Portfolio,” discusses the available opportunities for investors in the field, the current economic environment and how rising interest rates are creating a unique set of opportunities for distressed debt investors that has not been seen for over a decade.

    The second session sheds light on the Global Distressed and NPL Investing, providing insights into strategies and opportunities available in this field. It involves a discussion on the different asset classes in this sector of the market, including real estate, corporate, and consumer debt, the secondary market, as well as the panelists’ sharing of their experiences and analysis of investing in distressed and NPL assets across different geographies, including emerging markets and developed economies.

    It also covers the challenges and opportunities of investing in these markets, taking into account macroeconomic conditions, industry-specific trends and the unique regulatory and legal frameworks that govern these transactions.

    The Finoverse Arabia Forum

    The Finoverse Arabia Forum discusses the role of FinTechs and the adoption of technology in shaping the future of financial and banking institutions, as well as maximizing their efficiency and profits. It also explores the lessons learned from founding and developing startups, and sharing best practices through several panel discussions that address the intersection of FinTech, artificial intelligence, and Web3.

    This includes transforming business models and strategies across sectors, while addressing the infrastructure gaps and regulatory challenges. The advantages of investing in building a trusted Internet network across regions are also reviewed, along with strategies for securing and attracting the best talent to fuel Web3’s continued growth.

    The AIM Global 2023 is preceded by a series of professional interactive training sessions, led by experienced industry experts from all over the world. There will also be a range of workshops sessions aimed at enriching the participants’ experience and informing them about profitable investment opportunities.

    These workshops will be held one day prior to the event, where governments, smart city solution providers, startups, small and medium-sized companies, and investment opportunity providers touch base to achieve economic growth for their respective countries and regions.

    For more information, please visit the AIM website at www.aimcongress.com.

    -Ends-