2024-07-13 20:52
BUENOS AIRES, July 13 (Reuters) - Argentina's central bank will start selling U.S. dollars in the country's parallel foreign exchange markets in an effort to combat inflation and freeze the country's money supply, the government said on Saturday. Economy Minister Luis Caputo announced the new strategy on messaging platform X on Saturday, saying it would "contribute to deepening the disinflation process." Starting Monday, when Argentina's central bank issues pesos to buy U.S. dollars on the formal exchange market, the bank will effectively balance Argentina's monetary base by selling an equivalent amount of dollars on the parallel "CCL" exchange market, Caputo said. "There are no more pesos printed in Argentina by any means. It is a historic novelty," Caputo later said in a radio interview. "We were beating inflation by (a few) points and this is the 'knock out' blow," the minister added. The announcement comes after official data published on Friday showed a five-month streak of slowing inflation ended in June when monthly inflation came in higher than in May. The strategy outlined by the government of President Javier Milei aims to stabilize the money supply, bring down inflation and help close the widening gap between Argentina's official and parallel exchange rates traded in financial markets. The South American country's peso has been sliding since the beginning of the year in parallel markets, which for years has diverged sharply from the official rate due to strict currency controls. At Friday's close, the official exchange rate traded at 919.5 pesos per dollar, while the so-called "CCL" rate traded at 1,416.2 pesos per dollar. Meanwhile, the widely-used black market "blue" rate weakened to a historic low of 1,500 pesos per dollar on Friday. President Milei celebrated Saturday's announcement from the sidelines of the Sun Valley Conference, investment bank Allen & Co's annual invitation-only gathering in Sun Valley, Idaho, where the president and Caputo are courting investors. "The monetary base in Argentina is no longer increasing, and this is tremendously powerful news," Milei said during a phone interview with Argentine news channel LN+, adding that the plan would "accelerate the deflation process in the economy." Since Milei took power late last year, inflation has slowed dramatically in Argentina, decelerating from 25.5% in December to 4.2% in May. June's figure was 4.6%. Sign up here. https://www.reuters.com/world/americas/argentina-halts-monetary-base-expansion-lower-inflation-says-minister-2024-07-13/
2024-07-13 10:03
HANOI, July 13 (Reuters) - Landslides triggered by torrential rains in mountainous northern Vietnam buried a 16-seater van, killing at least 11 people and leaving some missing on Saturday, state media reported. Rescue teams including soldiers and citizens Ha Giang province had found 11 people dead and four injured, state-run Vietnam News Agency reported. Local authorities said the exact number of people in the van was not known and the aftermath of the heavy rains was complicating search and rescue efforts, the report said. Prime Minister Pham Minh Chinh urgently instructed local authorities and related government agencies to promptly deal with the disaster and stand ready to respond to more floods and landslides. Around 280 mm (11 inches) of rain had hit the area over the past 24 hours, according to the National Centre for Hydro-Meteorological Forecasting. The agency warned of flash floods, landslides due to floods or currents in the Ha Giang, Lao Cai, Tuyen Quang and Yen Bai provinces. Vietnam is prone to natural disasters, with floods and typhoons killing hundreds each year. Natural calamities killed 389 people and injured 668 last year, according to the government. Sign up here. https://www.reuters.com/world/asia-pacific/vietnam-landslides-kill-11-after-heavy-rain-2024-07-13/
2024-07-13 09:49
BANGKOK, July 13 (Reuters) - Thailand's market regulator has accused renewable energy firm Energy Absolute's (EA) (EA.BK) New Tab, opens new tab CEO and Deputy CEO of fraud in procurement of equipment for the company. The charges against CEO Somphote Ahunai and Deputy CEO Amorn Sapthaweekul relate to the purchase of equipment from overseas and/or software for EA's solar power plant during 2013-2015, according to a Securities and Exchange Commission (SEC) statement issued on late on Friday. The statement also named a third person, Phornlert Techarattanopas, as involved in the 'fraud'. The procurement, which was done through two subsidiaries, resulted in the three people receiving benefits of about 3.5 billion baht ($97 million), the regulator said. Their actions were against several sections of the Securities and Exchange Act, it said. The SEC said it filed a case with the Department of Special Investigation and the Anti-Money Laundering Office for further legal action. A spokesperson for EA said there was no notification from company executives on the matter yet. Somphote and Amorn could not be immediately reached for comment. ($1 = 36.13 baht) Sign up here. https://www.reuters.com/business/energy/thai-regulator-accuses-energy-absolute-ceo-deputy-fraud-2024-07-13/
2024-07-13 08:28
GABARONE, July 13 (Reuters) - The International Monetary Fund (IMF) has slashed Botswana’s 2024 growth forecast to 1% from an earlier April estimate of 3.6% due mainly to lower diamond production, it said in a statement. The budget deficit is also expected to widen to 6% from 3.45% due to a fall in mineral revenues, the IMF said, urging the diamond-rich southern African country to consider slowing down new infrastructure projects to help the economy. "The continued (economic) slowdown is mainly due to a fall in diamond production," said IMF said in a statement released late on Friday. "Some fiscal relaxation is warranted this year given the fall in mineral revenues, but the execution of the ambitious capital budget should be slowed down to contain the deterioration of the deficit and prioritize projects with the highest returns," the IMF said. Lower consumer demand and global economic weakness has lowered the demand outlook for diamonds, traditionally seen as luxury items. In February, Finance Minister Peggy Serame projected the economy would grow by 4.2%, but a few months later the central bank warned that this target was unlikely to be attained due to continued headwinds in the global diamond market. Botswana gets between 30-40% of revenue and 75% of its foreign exchange earnings from diamond sales. Sign up here. https://www.reuters.com/world/africa/imf-slashes-botswanas-2024-growth-forecast-amid-diamond-market-woes-2024-07-13/
2024-07-13 08:14
MOSCOW, July 13 (Reuters) - The Russian government on Saturday lowered a mandatory foreign currency sales requirement on major exporters from 60% to 40%, it said in a statement published on the Telegram messaging app. "The decision was made taking into account the stabilisation of the national currency exchange rate and the achievement of a sufficient level of foreign exchange liquidity," it said. A requirement to sell 80% of foreign currency earnings was introduced to support the rouble in October 2023, and then reduced to 60% in June. The Russian central bank has said that compulsory forex sales have helped calm volatility on the rouble market, allowing for controls to be relaxed. The rouble hit a three week low this week, after initially strengthening in response to U.S. sanctions on the Moscow Exchange (MOEX.MM) New Tab, opens new tab in June, causing Russia's main financial marketplace to immediately halt trading in euros and dollars. Sign up here. https://www.reuters.com/markets/currencies/russia-lowers-mandatory-fx-sales-exporters-60-40-2024-07-13/
2024-07-13 05:16
KATHMANDU, July 13 (Reuters) - Rescuers in Nepal searched on Saturday for 51 passengers and crew who went missing after a landslide swept their buses into a river swollen by heavy rain, an official said, adding that the chances of finding any survivors were diminishing. Some 500 rescuers resumed their search of the site of Friday's incident in Chitwan district, about 86 km (53 miles) west of the capital Kathmandu, but security personnel and divers have so far only found a curtain from one of the bus windows and a pair of trousers, said Khimananda Bhusal, deputy chief administrator of the district. Seven Indian nationals are among the missing passengers. At least three other passengers managed to jump off the buses before the landslide struck, escaping with minor injuries. "Chances of finding survivors are slim because over 30 hours have passed since the buses were swept into the river. The water level has receded this morning, but it is still very murky," Bhusal told Reuters by telephone. Landslides and floods triggered by torrential monsoon rains have killed at least 91 people in Nepal since mid-June. Images on social media on Friday showed rescue boats on the fast-flowing Trishuli River. Following the landslide, the government announced plans to ban buses from travelling at night in places with poor weather forecasting facilities. Sign up here. https://www.reuters.com/business/environment/chances-finding-survivors-slim-after-nepal-landslide-official-says-2024-07-13/
