Zimbabwe moves to cushion its economy with gold-backed tokens
Zimbabwe has introduced a new gold-backed digital currency as it battles to stop re-dollarisation, which President Emmerson Mnangagwa’s government fears will spell doom for the country’s fragile economy.
The country’s central bank said the digital tokens, also known as Zimbabwe Gold (ZiG), that are dominated in milligrams, can be used by both individuals and corporates to transact.
They can be bought from banks in local currency and in US dollars while goods and services will also be priced in ZiG.
Bank clients can transact using ZiG accounts through point of sale machines or via online payments.
In May, Zimbabwe unveiled gold coins for peer-to-peer and peer-to-business transactions as well as to act as a store of value as the country’s currency continued to lose ground against major currencies.
Vietnam"s next phase of growth on horizon | VIR (10/31/23)
Vietnam is expected to enter a new phase of growth as the country is looking to unlock its tremendous potential and capitalise on the growing interest of international business leaders and investors.
Within the framework of Vietnam Venture Summit 2023 on October 30, the Vietnam National Innovation Centre (NIC) and Golden Gate Ventures launched a report outlining the country’s growth trajectory. “Road to Greatness: Rewriting Vietnam’s Growth Playbook” pulls back the curtain on Vietnam’s economic resilience and examines what is under the hood of Vietnam’s growth in the next few years.
Unlike many other growth markets around the world and particularly in Asia, Vietnam has written its own playbook for success, capitalising on both a long-term view of growth and an agility to move with the changing economic environment to create a resilience that has withstood the challenges of 2023.
Since 2018, global manufacturers have increasingly shifted production to Vietnam due to escalating global politics, with the momentum building across 2021 all through 2023. This was buoyed by Vietnam’s focus on creating an increasingly supportive business environment, its well-educated workforce, low labour costs and favourable global trade agreements. This five-year track record has positioned Vietnam as the natural answer to emerging global supply chain issues. As the global supply chain shift continues with manufacturing as a key driver, Southeast Asia will be the standout winner, with Vietnam leading its neighbours.
2023 has also marked a new phase in Vietnam’s position as a global economic powerhouse as it strengthened strategic global partnerships with Israel, China, the Philippines and Singapore. Most recently, it elevated its relations with the United States to a Comprehensive Strategic Partnership, marking a new era of enhanced bilateral cooperation. Taken in totality, these trade agreements create a long-term runway for Vietnam not only as a leading manufacturing hub but as a centre for high-value foreign direct investment.
“In a year that has proven challenging for most economies, Vietnam has shifted its economic development into high gear, cementing itself as the new epicentre of Asia’s growth. With a firm hold on the global supply chain, continued investment from multi-nationals, and a thriving startup ecosystem that is feeding the world’s appetite for innovation, Vietnam finds itself in a unique position of writing a new playbook for growth that other markets will follow,” said Vinnie Lauria, founding partner at Golden Gate Ventures.
A testament to Vietnam’s steady rise as an economic power is the country’s biggest line-up of international listings. On the heels of the international listings of Vinfast and Society Pass in 2023, the next 18 months will be dominated by anticipated listings of VNG, TIKI and CrownX.
“Vietnam has swiftly risen to prominence in Asia and continues to be a key area of focus for the NYSE,” said Delano Musafer, Head of Asia-Pacific Capital Markets at the New York Stock Exchange. “I am excited by the number of Vietnamese companies showcasing continued innovation, growth and scalability.”
According to the report, five key sectors are predicted to dominate Vietnam’s growth, including healthtech, fintech, tech-enabled logistics, green economy and edtech. Healthcare spending per capita in Vietnam has tripled over the last five years with the rising consumer class and influx of expatriates into the country. The transaction value of the fintech sector is set to grow at an aggressive 15 per cent CAGR over the next four years to address 70 per cent of the population that still remains unbanked.
Meanwhile, in the tech-enabled logistics segment, asset-light models have become the game-changer. On the green economy front, Vietnam is leading Southeast Asia’s clean energy drive with wind and solar power innovations, while edtech is a natural growth sector with the increased attention that Vietnam has gained as an investment hub.
Parliamentary Financial Committee Denies Rumors of Dismissing Iraq’s Central Bank Governor
In the political corridors of Iraq, a whisper had taken the shape of a rumor. It hinted at the possible ousting of the governor of the Central Bank of Iraq, a move that would have resulted in a significant shift in the country’s financial structure. However, in a recent statement, Atwan Al-Atwani, the head of Iraq’s parliamentary financial committee, has categorically denied these rumors, offering a much-needed respite to the financial stability of the nation.
Quelling the Rumors
The rumor mill had been abuzz with the alleged plans of dismissing the Central Bank’s governor, a move that could have potentially destabilized Iraq’s already fragile economy. However, Al-Atwani, in his capacity as the head of the parliamentary financial committee, solidified the committee’s stance by refuting these rumors. His denial comes as a reassurance for those concerned about Iraq’s financial future, emphasizing the committee’s faith in the Central Bank’s leadership.
Support for the Central Bank
The parliamentary financial committee has been vocal about its support for the Central Bank’s actions, especially in controlling the exchange rate and addressing economic obstacles. The Central Bank of Iraq, under its current leadership, has been instrumental in maintaining exchange rate stability, a crucial factor for the country’s economic health. The committee’s public endorsement of the bank’s actions underscores its trust in the bank’s capacity to guide the Iraqi economy through the hurdles.
A Vote of Confidence
Al-Atwani’s statement not only dispels the rumors but also serves as a vote of confidence for the Central Bank’s governor. It reassures the investing community and the Iraqi public that the financial leadership of the country remains solid and undisturbed. In a nation where political and economic stability is often under threat, such affirmations are crucial for maintaining faith in the system.
This development is a testament to the resilience of Iraq’s financial institutions, which continue to operate and thrive amid political turbulence. It also underscores the role of the parliamentary financial committee in maintaining transparency and stability, acting as a pillar of support for the nation’s financial institutions.
Article: "What should be put in Sudanese's bag during his visit to Washington?"
Quote: "Prime Minister, Muhammad Shiaa Al-Sudani, received an official invitation from US President Joe Biden to visit the White House, after months of ongoing controversy inside Iraq, over Washington’s postponement of the visit, which was delayed “much” since Al-Sudani took office last October....The expert in Iraqi-American affairs and relations...said: 'A Sudanese visit to Washington must bring in his bag of achievements to prove to the American ally how he will deal with him in terms of oil, the economy, the dollar, the banking system, and others.”
Article: "Out of 329.. 'only' 32 Iraqi parliamentarians signed the closure of the American embassy.. Documents " Quote: "32 Iraqi parliamentarians, out of 329 others, submitted a request to the Presidency of Parliament to close the American embassy in Baghdad and expel Ambassador Alina Romanski."
Article: "Iraq is working to join the World Trade Organization (WTO)." Quote: "In the meeting, Al-Hashemi reviewed Iraq’s current efforts and its plan for the next stage in completing the technical files...and preparing them in accordance with the organization’s conditions and fruitful cooperation with international organizations supporting Iraq’s accession to the organization and its quest to obtain full membership in the organization.”
Iraq’s Path to a Digital Economy: New Directives Usher in Era of Electronic Payments
With the stroke of a pen, the office of Iraq’s Prime Minister has issued a series of executive orders that could reshape the nation’s financial landscape. The mandate, centred on the advancement of electronic payment systems and Point of Sales (POS) technology, signals Iraq’s intention to join the global digital economy’s accelerating tempo.
Driving Digital Transformation
The measures include the implementation of requirements issued by the Central Bank of Iraq, the General Secretariat of the Council of Ministers, and related entities. These directives are designed to fast-track the application of electronic payment systems, a critical step towards modernizing Iraq’s commerce and banking sectors.
But the changes run deeper, extending to the very conduct of government business. Procurement and implementation committees will now use electronic payment tools, integrating digital transactions into the heart of governmental operations.
Embracing Financial Technologies
The executive orders also mandate the adoption of financial and accounting information systems that facilitate the use of electronic payment methods. The implications are profound: a digital leap forward, translating into greater financial transparency, efficiency, and accountability.
The Central Bank of Iraq is tasked with taking all necessary steps to support the implementation of electronic payment systems. This move underscores the vital role of the CBI in driving this digital transformation, a testament to its pivotal role in Iraq’s economic future.
Incentivizing Electronic Payments
Perhaps most intriguingly, the new directives stipulate that government entities impose additional fees for cash transactions. This strategy is designed to nudge citizens and businesses towards electronic payments, fostering a cashless culture that aligns with global trends.
These actions, set to commence on the first of December 2023, represent a bold leap into the future for a nation navigating the complexities of post-war rebuilding and economic revitalization.
While the road to a fully digital economy is long, these directives represent a significant step in that direction. They pave the way for a new era of financial inclusivity and transparency in Iraq, promising a future where digital transactions are the norm rather than the exception.