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Category: Economics

  • MIL-OSI Economics: RBI imposes monetary penalty on Arunachal Pradesh Rural Bank

    Source: Reserve Bank of India

    The Reserve Bank of India (RBl) has, by an order dated October 03, 2024, imposed a monetary penalty of ₹14.00 lakh (Rupees Fourteen Lakh only) on Arunachal Pradesh Rural Bank (the bank), for non-compliance with certain directions issued by RBI on ‘Strengthening of Prudential Norms- Provisioning Asset Classification and Exposure Limit’ and ‘Know Your Customer (KYC)‘. This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.

    The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

    After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had:

    1. failed to classify certain loan accounts as non-performing assets (NPA) resulting into divergence in asset classification of loan accounts; and

    2. allotted multiple Unique Customer Identification Code (UCIC) to its individual customers.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1288

    MIL OSI Economics –

  • MIL-OSI Economics: RBI imposes monetary penalty on The Urban Co-operative Bank Limited, Dharangaon, Maharashtra

    Source: Reserve Bank of India

    The Reserve Bank of India (RBl) has, by an order dated October 07, 2024, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Urban Co-operative Bank Limited, Dharangaon, Maharashtra (the bank), for non-compliance with the specific directions issued by RBI under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

    The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI instructions issued under SAF and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

    After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

    The bank had incurred capital expenditure without prior approval of RBI in violation of the directions issued under SAF.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1287

    MIL OSI Economics –

  • MIL-OSI Economics: RBI imposes monetary penalty on Jilla Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh

    Source: Reserve Bank of India

    The Reserve Bank of India (RBl) has, by an order dated October 03, 2024, imposed a monetary penalty of ₹2.75 lakh (Rupees Two Lakh Seventy Five Thousand only) on Jilla Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act and section 25 of the Credit Information Companies (Regulation) Act, 2005.

    The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with statutory provisions / RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions/directions.

    After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

    The bank had:

    1. failed to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed period; and

    2. failed to submit credit information of its borrowers to any of the four CICs.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1286

    MIL OSI Economics –

  • MIL-OSI Economics: The Samsung Art Store to Feature Exclusive Highlights from The Museum of Modern Art’s Collection

    Source: Samsung

    Twenty-seven well-known artworks from MoMA’s collection, including those by artists Frida Kahlo, Henri Matisse and Georgia O’Keeffe, are available on the Samsung Art Store today, exclusively to The Frame by Samsung, a best-selling Lifestyle TV that doubles as a piece of art. When it’s on, use The Frame to watch your favorite movies and shows in brilliant 4K resolution. When it’s off, explore the Samsung Art Store to transform any space in your home with a vast catalog of artworks that are handpicked and curated from hundreds of institutions, artists and collectors around the world.
    MoMA was founded in 1929 by three progressive women who championed modern and contemporary art and wanted to establish a museum that could be a catalyst for experimentation, learning and creativity. In collaboration with MoMA, the Samsung Art Store includes highlights from MoMA’s collection that were selected by Daria Greene, Global Curator of the Samsung Art Store, to honor the institution’s history and vision, and includes Frida Kahlo’s “Fulang Chang and I” (1937), which is the first artwork by the legendary Mexican artist to arrive on the platform.
    “MoMA is a place that fuels creativity, ignites minds and provides inspiration. Through our relationship with Samsung, we are broadening access to MoMA’s collection in a truly innovative way to millions of people,” said Robin Sayetta, Head of Business Development at The Museum of Modern Art. “We were purposeful in building this new digital collection and hope to enrich the lives of art enthusiasts with culture and history at an extraordinary scale.”
    A view of the fifth-floor collection galleries. Shown: Claude Monet. Water Lilies. 1914–26. Oil on canvas, three panels. Mrs. Simon Guggenheim Fund. © 2024 The Museum of Modern Art, New York. Photo: Noah Kalina
    Expanding Access to Art Through Innovation
    Included in the more than two dozen artworks from MoMA are celebrated works such as Vincent van Gogh’s “The Starry Night” (1889), Henri Rousseau’s “The Dream” (1910) and Georgia O’Keeffe’s “Evening Star III” (1917). This selection represents a diverse range of styles and points in time, offering something for every art lover and Samsung Art Store subscriber.
    A view of the fifth-floor collection galleries. Shown: Vincent van Gogh. The Starry Night. 1889. Oil on canvas. Acquired through the Lillie P. Bliss Bequest. © 2024 The Museum of Modern Art, New York. Photo: Noah Kalina
    “At Samsung, we strive to redefine the home entertainment experience through continual innovation. Our collaboration with MoMA allows us to bring culturally significant works into millions of homes, allowing people to engage with renowned art in a truly remarkable way,” said Sang Kim, EVP and General Manager of the North America Service Business at Samsung Electronics. “This endeavor exemplifies Samsung’s mission to use technology to deliver exceptional experiences into the everyday lives of consumers.”
    “For nearly 100 years, MoMA has been instrumental in expanding the reach and impact of Modern and Contemporary art, cementing its position as one of the most dynamic and diverse institutions globally. Through this collaboration, we are able to share works by incredible artists, including 20th century female trailblazers, on the Samsung Art Store,” adds Daria Greene, Global Curator of Samsung Art Store.
    Hannah Höch’s Untitled (Dada) (detail) (1922) shown on The Frame by Samsung. Photo: Samsung
    The Samsung Art Store is available only on The Frame, which has been refreshed in 2024 to deliver an even more complete artistic and aesthetic experience. That includes ArtfulColor validation from Pantone1, the industry leading color experts. As the world’s first and only art TV to achieve this validation, The Frame delivers natural and realistic visuals that wouldn’t look out of place in a gallery. It hangs just like a picture flush against the wall and is available in class sizes ranging from 32 to 85 inches. The bezels2 can also be swapped out with various colors and designs, giving you more ways than ever to customize The Frame for your unique style and décor.
    The Frame also delivers value-add features that you can only find from Samsung – the #1 global TV brand for 18 years and counting.3 Samsung AI technology makes everything you watch look clearer and crisper, while you enjoy access to 2,700+ free channels, including 400+ Samsung TV Plus4 premium channels. You can also use your TV as your smart home hub and ensure your personal data is protected by Samsung Knox security.

    The Frame is available for purchase at MoMA Design Store at store.moma.org, Samsung.com and other select retailers.
    The Introduction of Highlights from MoMA’s Collection follows the Samsung Art Store’s relationships with world-class museums including The Metropolitan Museum of Art and Musée d’Orsay, and the release of several collections this year featuring René Magritte, Jean-Michel Basquiat and over 40 Marimekko artworks. Samsung remains committed to being the premier destination for experiencing a wide breadth of high-quality digital art.

    MIL OSI Economics –

  • MIL-OSI Economics: Samsung Galaxy Ring, S24 Ultra and Z Flip6 Power Red Bull Rampage

    Source: Samsung

    Samsung Galaxy’s collaboration with Red Bull continued this month with the premier big mountain freeride mountain biking event, Red Bull Rampage, including the first ever all-female competition. Each rider and their team faced a daunting task: they had eight days to construct the lips, landings, and lines needed to travel from the top of the mountain to the finish line, with only water, hand tools, and 75 sandbags.
    Previously, the impact of this grueling challenge could only be described in words. Now, with the help of Galaxy Ring, teams tracked the physical and mental readiness of their riders daily prior to and during the event and received personalized recommendations on how to improve their routine. When the competition kicked off, Galaxy S24 Ultra captured the heart-pumping race and all its electric moments. Galaxy Z Flip6 also helped athletes capture their own practice sessions using FlexCam – no tripod or help needed to capture the perfect shot.

    “Galaxy Ring and Galaxy Smartphones just highlighted yet another example of how innovative devices can offer thrilling experiences” said Simon Callan, Head of Partnerships at Samsung Electronics America. “Red Bull Rampage was the perfect opportunity to show off Galaxy S24 Ultra’s stunning camera as well as Galaxy Ring’s groundbreaking features — from sleep analysis to Wellness Tips — which supports athletes’ recovery time by offering personalized advice based on their sleep, activity, and more.”
    Red Bull competitions are synonymous with daring challenges and Galaxy Ring kept up with world-class athletes, Casey Brown and Kurt Sorge, all day and night. In the eight-day lead-up to the competition, each rider and team was hard at work envisioning and creating the best path down the mountain. Throughout this process, Galaxy Ring tracked activity levels, sleep quality, and so much more — delivering a daily Energy Score that encapsulated their rider’s readiness. Teams used these scores to determine how much rest their rider needed to ensure peak performance on race day. During the competition, these daily scores were shared on the broadcast, highlighting the impact of the preparation, and how Galaxy Ring’s personalized tips provided the competitors with the tools they needed to succeed.

    “The minimalist design of the Galaxy Ring is perfect for my lifestyle. I can’t believe how much technology they fit into such a small piece of jewelry, which helped inform my recovery,” said Casey Brown. “I don’t even notice it during my daily activities, like digging or riding my bike. I can even sleep with it on without noticing it’s there.”
    Red Bull Rampage was filled with excitement from start to finish — featuring jaw-dropping action, close races, and iconic victories. To capture these memorable moments, Galaxy S24 Ultra’s 200MP camera was on hand. Powered by the innovative ProVisual Engine, Samsung Galaxy’s comprehensive suite of AI-powered tools, Galaxy S24 Ultra was prepared for anything. That included capturing riders at the top of the mountain using 100x magnification or taking advantage of its groundbreaking Nightography enhancements — allowing for crystal-clear photos from the early morning to late at night.
    For more information about Samsung’s latest devices, including Galaxy S24 Ultra and Galaxy Ring, visit Samsung.com.

    MIL OSI Economics –

  • MIL-OSI Economics: VP Roberta highlights ADB’s work on sustainable finance, local currency at Hamburg Sustainability Conference

    Source: Asia Development Bank

    Article | 10 October 2024
    Read time: 1 min

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    From 7 to 8 October, VP Roberta led ADB’s delegation, in coordination with the European Representative Office,  to the first Hamburg Sustainability Conference, a joint initiative by the German Federal Ministry for Economic Cooperation and Development (BMZ), the UNDP, and the City of Hamburg. The VP met with Germany’s Parliamentary State Secretary and ADB Governor Niels Annen and State Secretary Baerbel Kofler. VP Roberta also participated in the Multi-stakeholders Collaboration to Enhance Credit Ratings and Country Risk Assessments roundtable with high-level representatives from governments, peer multilateral development banks, international financial institutions, credit rating agencies. At the side event Sustainable Finance Forum on 9 October, VP Roberta highlighted ADB’s work in local capital markets development, currency lending, and sustainable finance.

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    Subjects
    • Climate change

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  • MIL-OSI Economics: John C Williams: All about data

    Source: Bank for International Settlements

    Introduction

    Good morning. I’m so pleased to be here at Binghamton University, a true gem of the SUNY system. Meeting with students, educators, and business and community leaders is a valuable and enjoyable part of my job.

    The New York Fed represents the Federal Reserve System’s Second District, which includes New York State, northern New Jersey, western Connecticut, Puerto Rico, and the U.S. Virgin Islands. This is a diverse region made up of many smaller local economies. Therefore, it’s important for me and my colleagues at the New York Fed to collect data and learn about the challenges and opportunities facing all of the communities we serve.

    That said, monetary policy affects everyone, and the Federal Reserve is committed to using its tools to achieve its dual mandate of maximum employment and price stability. Today, I will talk about monetary policy and how the Fed is working to fulfill this dual mandate. I’ll also give you my outlook on the U.S. economy.

    Before I do, I will give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System.

    Obsessing Over Data

    As I’ve traveled around the Southern Tier region, I’ve enjoyed seeing the emergence of the colors of autumn. Tracking fall foliage is a hobby for many. What I like is that it’s all about data. “Leaf peepers” submit field reports on changing color conditions, and experts pore over the information. One forecast predicts we will hit peak foliage in four days.1

    At the Fed, we’re equally obsessed with data. In our case, we study data about the economy-whether here in the district, across the country, or around the world. So, I’ll highlight some of the data that help my understanding of how the economy is performing relative to our dual mandate goals, as well as what policy actions we can take to achieve these goals.

    When inflation became unacceptably high and the labor market exceptionally tight, the FOMC acted with resolve to bring inflation back down to our 2 percent longer-run target. The Committee’s strong actions have helped bring the economy much closer to our goals. Imbalances between supply and demand in the economy have mostly dissipated, even as the economy and employment have continued to grow. And inflation, as measured by the personal consumption expenditures (PCE) price index, has declined from over 7 percent in June of 2022 to just 2-1/4 percent in the latest reading. There’s still some distance to go to reach our goal of 2 percent, but we’re definitely moving in the right direction.

    The data paint a picture of an economy that has returned to balance, or in a word that the English majors in the room may appreciate, “equipoise.” In light of the progress we have seen in reducing inflation and restoring balance to the economy, the FOMC decided at its most recent meeting to lower the interest rate that it sets. Simply put, this action will help maintain the strength of the economy and labor market while inflation moves back to 2 percent on a sustainable basis.

    Moving to Price Stability

    I’ll go further into our policy decision and what it means for the economic outlook in a minute. But first, I’ll give more details about each side of our dual mandate, starting with inflation. I’ll use an onion analogy that I have found useful over the past two years to demonstrate how inflation’s three distinct layers are normalizing at different rates.2

    The onion’s outer layer represents globally traded commodities. As the economy started to rebound from pandemic shutdowns and demand began to soar, inflation surged, then rose further when Russia invaded Ukraine. Since then, supply and demand have come into balance, and these prices have generally been flat or falling.

    The middle onion layer is made up of core goods, excluding commodities. Demand for goods rose sharply as the economy emerged from the pandemic downturn-just as global pandemic-related supply-chain disruptions significantly hampered supply. But, as seen in the New York Fed’s Global Supply Chain Pressure Index, those supply pressures have eased, and core goods inflation has returned to pre-pandemic norms.3

    The inner onion layer comprises core services. Although this category is taking the longest to normalize, the disinflationary process is well underway here too. For example, measures of underlying inflation that tend to be heavily influenced by core services inflation today average around 2-1/2 percent.4

    One positive piece of data that reinforces my confidence that inflation is on course to reach our 2 percent goal is that inflation expectations remain well anchored across all forecast horizons. This is seen in the New York Fed’s Survey of Consumer Expectations as well as other surveys and market-based measures.5

    A Labor Market in Balance

    Now I’ll turn to the employment side of our mandate. And no surprise, I’ll point to data. A wide range of metrics-including the unemployment rate; measures of job openings, hiring, quits, and employment flows; and perceptions of job and worker availability-indicate that the very tight labor market of the past few years has now returned to more normal conditions and is unlikely to be a source of inflationary pressures going forward.

    Recent analysis by researchers at the New York Fed provides a useful way to gauge whether the labor market is tight or loose.6 They find that you can effectively summarize the state of the overall labor market in terms of its effect on compensation growth by using just two indicators: the rate at which employees quit their jobs and the ratio of job openings to job seekers. In fact, once you take these two measures into account, other labor market metrics that get a lot of attention-such as the unemployment rate and the vacancy-to-unemployment ratio-don’t provide additional useful information. 

    Combining these two measures into an index of labor market tightness provides two key insights. First, data as of the second quarter of this year indicate that the labor market is about where it was in early 2018-a period of solid labor market conditions and low inflation. Second, compensation growth should soon return to levels that prevailed prior to the pandemic.

    Seasons of Change

    So, the labor market is solid. The economy is in a good place. And inflation is closing in on our 2 percent longer-run goal. With the risks to achieving our goals now in balance, the FOMC decided to lower the target range for the federal funds rate by half a percentage point, to 4-3/4 to 5 percent. In addition, the Committee continued to normalize the holdings of securities on the Fed’s balance sheet.7

    Looking ahead, based on my current forecast for the economy, I expect that it will be appropriate to continue the process of moving the stance of monetary policy to a more neutral setting over time. The timing and pace of future adjustments to interest rates will be based on the evolution of the data, the economic outlook, and the risks to achieving our goals. We will continue to be data-dependent and attuned to the evolution of economic conditions in making our decisions.

    With monetary policy moving to a more neutral setting over time, I expect real GDP to grow between 2-1/4 and 2-1/2 percent this year and to average about 2-1/4 percent over the next two years. I anticipate the unemployment rate to edge up from its current level of about 4 percent to around 4-1/4 percent at the end of this year and stay around that level next year. With the economy in balance and inflation expectations well anchored, I expect overall PCE inflation to be around 2-1/4 percent this year, and to be close to 2 percent next year.

    Conclusion

    The economy has been on a remarkable journey. In two years, the red-hot labor market has normalized, and inflation has come within striking distance of our 2 percent longer-run goal-all while employment and the economy continue to grow.

    We instituted and maintained a very restrictive monetary policy stance until the data gave us confidence that inflation is sustainably on course to 2 percent. With this progress toward achieving price stability, moving toward a more neutral monetary policy stance will help maintain the strength of the economy and labor market. Although the outlook remains uncertain, we are well positioned to achieve our dual mandate goals.

    MIL OSI Economics –

  • MIL-OSI Economics: Shaktikanta Das: Central banking at crossroads

    Source: Bank for International Settlements

    I feel highly privileged to be here at this High Level Conference on ‘Central Banking at Crossroads’ and share some of my thoughts. When the definitive history of our times is written, the turn of the current decade will, in all probability, be regarded as a watershed in the evolution of central banking. In the aftermath of the COVID-19 pandemic and the persistent geopolitical strife thereafter, central banks are treading in the uncharted terrain of a twilight zone. Today, like never before in the five centuries of their existence, central banks are confronted with a future where their mandates, their functions and their performances are all up for unforgiving scrutiny.

    Around them, the environment in which central banks have been operating is undergoing tectonic transformations. Structural changes are underway that have the power to fundamentally alter the context of central banking with headwinds from geo-economic fragmentation; muscular industrial, trade and financial policies that are already reshaping supply chains and the availability of critical minerals, intermediates, resources and services; new technologies; and climate change. In this rapidly evolving environment, central banks are required to navigate not just known unknowns but unknown unknowns too.

    Yet, even at these exceptional intersections, central banks are exploring new pathways and striving to reinvent their remit and functioning as the guardians of financial stability. Their effort is to stay ahead of these developments by strengthening guardrails and leveraging on technological innovations.

    For the Reserve Bank of India (RBI), as we commemorate its 90th year, it has been an eventful journey since its establishment in 1935. In many significant ways, the Reserve Bank embodies the developmental aspirations of India. The landmarks of its journey are equally milestones in the progress of India. At the current juncture and looking ahead, developments around the world are impacting India on a continuous basis and challenging us as practitioners of central banking.

    Today’s conference gives us an opportunity to introspect on the journey of central banking so far and how we want to visualise and shape our role in the future. In my remarks today, I propose to briefly focus on three areas where central banking is likely to be redefined in the future: monetary policy; financial stability; and new technologies. In fact, these are among the themes of specific sessions in today’s conference. My observations would be mainly in the context of central banking across countries.

    Monetary Policy

    The three decades of restrained volatility of business cycles and the co-existence of price stability and uninterrupted growth that preceded the global financial crisis (GFC), perhaps lulled central banks into the belief that inflation expectations are enduringly anchored. The beast of inflation of the 1970s and early 1980s seemed completely behind our times. Conditioned by that experience, central banks shed their role of ‘lender of the last resort’ and became lender of the first resort to defend their financial systems when they responded to the GFC. They continued from their GFC moment and once again rushed to the frontline as warriors of the first resort to protect and preserve lives and livelihood when the COVID-19 pandemic hit the world. They took interest rates to all-time lows, undertook unconventional policy measures to reach out to interest rates across the spectrum, including at the longer end, and gave assurances about low for longer interest rates. This was an uncharacteristic departure from the monetary mysticism that had prevailed up to the 1990s. Clearly, central banking has evolved in line with the developments of the 21st century.

    While the pandemic time measures provided the much needed support to the economies, in the aftermath of the pandemic the limits and downsides of easy monetary policy in protecting economic activity in a crisis period became evident. Today, rightly or wrongly, the central banks are accused of distributional consequences of their actions. The negative equity that weighs in the balance sheets of certain central banks is seen as compromising their independence in the conduct of monetary policy. The story in India was, however, different as most of our liquidity measures were calibrated and carried end dates at the time of their announcement itself.

    Another challenge staring at central banks today emanates from soaring public debt caused, in a considerable measure, by the pandemic-related fiscal stimuli and the subsequent efforts for fiscal consolidation not gaining adequate traction. Such a situation is becoming a binding constraint on monetary policy in several countries. Global public debt has surged post the pandemic to 93.2 per cent of GDP in 2023 and is likely to increase to 100 per cent of GDP by 20291. In major economies, debt-GDP ratios are on an upward trajectory, raising concerns about their sustainability and their negative spillovers for the broader global economy. In several other countries, central banks are willy-nilly expected to facilitate financing of such huge public debts. In fact, the debt overhang is simmering underneath the radar of central banks, threatening to un-anchor inflation expectations and undermine macroeconomic stability.

    For emerging market economy (EME) central banks, the international dimensions of monetary policy continues to be a testing challenge. For them, the trilemma is real. Today the global economy is more financially integrated than ever before. Monetary policy actions in systemic economies produce large fluctuations in capital flows and exchange rates, which can then feed into domestic liquidity, inflation and eventually affect the real economy. While monetary policies in the systemic economies are determined by their domestic inflation-growth considerations, they have large spillovers to the emerging and developing economies and even to other advanced economies. These spillovers can be expected to accentuate as capital flows dwarf trade flows. Quite naturally, emerging economies are having to strengthen their policy frameworks and buffers to manage this external flux and mitigate its adverse consequences.

    Financial Stability

    Financial stability is the essential reason why central banks exist. Price stability as a central bank objective is of more recent vintage. There is a growing opinion today that ‘low for long’ policies practiced during the GFC and again during the pandemic, apart from providing support to the real economy, also produced exuberant financial asset prices that have come back to haunt central banks in their role as guardians of financial stability. Amidst ultra-low interest rates and super abundant liquidity, leveraging and risk-taking were celebrated as if there is no tomorrow. Consequently, when central banks were confronted with inflation surges in 2022 in the shadow of the war in Ukraine, they reacted with one of the most aggressive and synchronised tightening of monetary policies in history. This resulted in risks to financial stability, especially when these risks morphed into banking crises in certain countries in March 2023 and sell-offs in financial markets in August and September 2024. These developments have once again brought to fore the role of central banks in securing and preserving financial stability. Specifically, how should they account for financial stability considerations in their pursuit of price stability?

    Let me now address some of the emerging risks to financial stability. First, the divergence in global monetary policies – monetary easing in some economies, tightening in a few, and pause in several other economies – can be expected to lead to volatility in capital flows and exchange rates, which may disrupt financial stability. We saw a glimpse of this with the sharp appreciation of the Japanese Yen in early August which led to disruptive reversals in the Yen carry trade and rattled financial markets across the globe.

    Second, private credit markets have expanded rapidly with limited regulation. They pose significant risks to financial stability, particularly since they have not been stress-tested in a downturn.

    Third, higher interest rates, aimed at curtailing inflationary pressures, have led to increase in debt servicing costs, financial market volatility, and risks to asset quality. Stretched asset valuations in some jurisdictions could trigger contagion across financial markets, creating further instability. The correction in commercial real estate (CRE) prices in some jurisdictions can put small and medium-sized banks under stress, given their large exposures to this sector. The interconnectedness between CRE, non-bank financial institutions (NBFIs), and the broader banking system amplifies these risks.

    New Technologies

    In recent years, the technology-driven digitalisation wave in the payments sphere has been revolutionary. While most of the innovations have been at the national level focusing on retail payments, the market for cross-border payments has also expanded substantially. The significant volume of cross-border worker remittances, the growing size of gross flows of capital, and the increasing importance of cross-border e-commerce have acted as catalysts to this growth.23 Remittances are the starting point for many emerging and developing economies, including India, to explore cross-border peer-to-peer (P2P) payments. We believe there is immense scope to significantly reduce the cost and time for such remittances.

    India is one of the few large economies with a 24×7 real time gross settlement (RTGS) system. The feasibility of expanding RTGS to settle transactions in major trade currencies such as USD, EUR and GBP can be explored through bilateral or multilateral arrangements. India and a few other economies have already commenced efforts to expand linkage of cross-border fast payment systems both in the bilateral and multilateral modes.4

    India has developed a world-class digital public infrastructure (DPI), which has facilitated the development of high-quality digital financial products with enormous potential for cross-border payments. India is now home to the world’s third most vibrant startup ecosystem, with over 140,000 recognised startups, more than a hundred unicorns, and over US$150 billion in funding raised. India’s experience in DPI can be leveraged by other countries to improve and usher in a global digital revolution.

    Central bank digital currencies (CBDCs) is another area which has the potential to facilitate efficient cross-border payments. India is one of the few countries that have launched both wholesale and retail CBDCs. Programmability, interoperability with the UPI retail fast payment system and development of offline solutions for remote areas and underserved segments of the population, are some of the value added services which we are now experimenting as part of our CBDC pilot.

    Going forward, harmonisation of standards and interoperability would be important for CBDCs for cross-border payments and to overcome the serious financial stability concerns associated with cryptocurrencies. A key challenge could be the fact that countries may prefer to design their own systems as per their domestic considerations. I feel we can overcome this challenge by developing a plug-and-play system that allows replicability of India’s experience while also maintaining the sovereignty of respective countries.

    It is well recognised that growing digitalisation of financial services has enhanced the efficiency of the financial sector across the globe. At the same time, it has brought in several challenges which central banks have to deal with. For instance, in the modern world with deep social media presence and vast access to online banking with money transfer happening in seconds, rumours and misinformation can spread very quickly and can cause liquidity stress. Banks have to remain alert in the social media space and also strengthen their liquidity buffers.

    Latest technological advancements such as artificial intelligence (AI) and machine learning (ML) have opened new avenues of business and profit expansion for financial institutions. At the same time, these technologies also pose financial stability risks. The heavy reliance on AI can lead to concentration risks, especially when a small number of tech providers dominate the market. This could amplify systemic risks, as failures or disruptions in these systems may cascade across the entire financial sector. Moreover, the growing use of AI introduces new vulnerabilities, such as increased susceptibility to cyberattacks and data breaches. Additionally, AI’s opacity makes it difficult to audit or interpret the algorithms which drive decisions. This could potentially lead to unpredictable consequences in the markets. Banks and other financial institutions must put in place adequate risk mitigation measures against all these risks. In the ultimate analysis, banks have to ride on the advantages of AI and Bigtech and not allow the latter to ride on them.

    Conclusion

    Despite the difficult trials and trade-offs, central banking in the current decade is a success story. In the realm of monetary policy, central banks have been successful in bringing inflation closer to targets. Major financial collapses or recessions, seen during earlier episodes of crisis, have been averted. Central banks are now at the forefront of technological innovations and are driving them through sandboxes, innovation hubs and hackathons.

    As we navigate the high intensity tail events and black swans of the current decade, the lessons imbibed can well form the basis of our deliberations today to chart out a course for the future. Central banks must remain vigilant, adaptable, continuously assess risks and build resilience. They should remain prepared to navigate complex challenges, support sustainable growth, maintain price stability and promote sound and vibrant financial systems.

    Thank you.

    MIL OSI Economics –

  • MIL-OSI Economics: Eddie Yue: China and the changing global trade landscape – challenges and opportunities

    Source: Bank for International Settlements

    Professor Wei [Shang-Jin, N.T. Wang Professor of Chinese Business and Economy, Columbia University], Distinguished guests, Ladies and Gentlemen, Good Morning!  

    It is my pleasure to welcome you all to the 14th Annual International Conference on the Chinese Economy, organised by the Hong Kong Institute for Monetary and Financial Research. The theme of this year’s conference is “China and the Changing Global Trade Landscape: Challenges and Opportunities”.  This is a timely and important topic – not just for China, but also with far-reaching and enduring implications for the global economy.     

    There is ample evidence that globalisation has brought enormous benefits to the world, through increasing cross-border flow of trade, investments, technology, ideas, and people. For emerging market economies, integration into the global supply chain has been a crucial contributor to their economic development.  As global income rose in tandem with global trade from the 1980s onwards, billions of people have been lifted out of poverty. 

    Since the 2008 global financial crisis, however, the golden era of globalisation has given way to a gradual slowdown in global trade in goods. There is a combination of factors.  First, it reflects doubts or even scepticism about the distributional effects of globalisation.  Secondly, rising geopolitical considerations in recent years have led to a re-imposition of various trade and investment restrictions by some jurisdictions.  And thirdly, recent disruptions to supply chain, caused by the pandemic and regional military conflicts, have prompted discussions about ways to mitigate such risks.

    These developments have not yet translated into a wholesale reconfiguration of the global trade landscape. But it appears that the slow-down in global goods trade is likely to continue.  A recent joint study by the HKMA and the Bank for International Settlements (BIS) suggests that some supply chain realignment has already been taking place during the pandemic.  

    Any escalation of geo-economic fragmentation would almost certainly result in a costly transition, especially for Asia given the region’s relatively open economies. For those who believe in the value of free trade and globalization, the key question then is how best to collectively minimise the risks of full blown economic fragmentation, and what actions can be taken to sustain globalisation, even in the face of a changing global trade landscape?

    Since this is a conference about the Chinese economy, perhaps we can start with a quick examination of how China is adapting to the change and turning the challenge into opportunity. Despite the headwinds in the trade sector, China’s world export share has remained at around 15 per cent since 2018.  This reflects two important trends. 

    First, China has continued its economic diversification and regional collaboration through expanding its import and export network, particularly to broader emerging markets. It has also stepped up outward direct investments to establish stronger footholds in the global supply chain amidst friend-shoring or near-shoring.

    Second, China’s manufacturing industries have doubled down on their efforts to move up the value chain, from low-end, labour-intensive component manufacturing to higher-tech, full-spectrum product manufacturing, supported by China’s own domestic market and growing capability in more sophisticated technology goods.

    Indeed, this is a process that pre-dates the recent rise in global trade protectionism, if just for the classic reason of comparative advantage. What we have witnessed is that even as some production may have been diverted away from China, these have been largely concentrated in a few sectors – namely, textiles, electronics and autos – and in the assembly segment rather than upstream.  While Chinese exports might take up a smaller share of some markets as a result, it is exporting more intermediate goods and capturing a larger share of imports from other regional economies. 

    China’s search for new trade opportunities through diversification and supply chain upscaling has brought structural transformation to the Chinese economy and helped maintain China’s key position in global manufacturing. The process, together with other changes in the global supply chain, will bring fundamental changes to global trade and investment.  It would be premature to predict what the new order will be.  But one thing is for sure, those who embrace the change and rise to the challenge will benefit greatly, and it should not be a zero-sum game. 

    Now let me shift gear and touch on some emerging opportunities we are going to discuss at this conference. I will focus on two panel themes: digital trade transformation and innovative trade finance – two topics that are increasingly relevant as we transition towards a digitalised global economy.

    Digitalisation of trade offers a range of benefits. For firms, digital transformation of trade and supply chain processes can produce efficiencies in terms of time and labour saved. It also enhances the traceability and security of cross-border trade in goods and services, by enabling real-time visibility into all stages of the supply chain from production to delivery.

    For economies, digital trade transformation offers substantial productivity gains through, for example, rapid growth of e-commerce. It also offers better prospects of helping to distribute the gains generated from trade more widely and equitably among the various stakeholders. 

    Indeed, digitally delivered services already account for a little over half of total services trade1. They are increasingly facilitating trade flow across borders, in support of raising the market share of developing economies, which has increased from about 20 percent to 30 percent of global service trade between 2005 and 2023. 

    Meanwhile, digital technologies can be leveraged to enhance cross-border trade settlement and financing, where there is plenty of scope for coordinated solutions to existing pain points. For example, Project mBridge has been exploring the use of wholesale central bank digital currencies of Hong Kong and a number of other participating central banks as a way to speed up cross-border payments at reduced cost, faster settlement, and with better transparency. 

    Equally exciting is the use of innovative technologies in trade finance – from blockchain, AI to digital signatures – and greater cooperation around cross-border interoperability that will help close the widening global trade finance gap, estimated by the Asian Development Bank last year to have reached a record US$2.5 trillion.

    Another area of opportunity and cooperation is around green technologies. The consequences of climate change, in the form of higher frequency of extreme weather events, have only become more visible these last few years, and Asia is particularly exposed. 

    We need open and predictable trade to enable scale economies and direct low-carbon technologies and services to where they are most needed. In this respect, major regional trade networks can serve as key platforms that facilitate sustainable trade and investment, support climate-resilient economic developments, and enhance the ecosystem of green finance.

    Let me close by noting that the global trading system as we know has brought mutual benefits and shared prosperity to the world economy. Granted, there’s always scope to make the system work better and fairer.  Let’s focus not just on the challenges, but more on the solutions and the opportunities.  

    There are excellent research papers to be presented at the conference, covering many of the topics I outlined just now. So I wish you all a most engaging and productive conference. 

    Thank you.

    MIL OSI Economics –

  • MIL-OSI Economics: Adrian Orr: Improving Māori access to capital

    Source: Bank for International Settlements

    Introduction

    Kia orana tatou katoatoa, tēnā tātou katoa
    Ngāti Tūwharetoa, te whare tapu o Te Heuheu, tēnā koutou
    Ko Tongariro te maunga
    Ko Taupo te moana
    Ko Taupo te whenua tipu
    Heoi, nō Atiu ōku tīpuna
    Nō reira tēnā koutou, tēnā koutou, tēnā tatou katoa

    I would like to acknowledge Tā Tumu Te Heuheu and the iwi of Ngāti Tūwharetoa, whose leadership continues to inspire and guide us.

    Ngā mihi nui ki a koutou.

    All of you will be familiar with the kaupapa kōrero today, Māori access to capital.

    Kiingi Tawhiao established Te Pēke o Aotearoa in around 1885 to support a growing Māori economy. At that time the financial system was excluding Māori. Te Pēke o Aotearoa was a response. It was a vehicle for Māori to participate in this new system.

    Te Peeke o Aotearoa was a pioneer for financial inclusion that was for all New Zealanders. Historians point to an inscription on each of the banknotes saying ‘e whaimana ana tenei moni ki ngā tāngata katoa’, meaning ‘this money is valid for all people’.

    This highlights the inclusive goal that was pursued, a mindset we can all learn from.

    Why Māori access to capital matters

    Financial inclusion means that people have access to financial products and services that meet their needs. All New Zealanders should be able to benefit from inclusion in the financial system. At the Reserve Bank, we would be at a loss if we did all the hard work to promote a financial system that was strong, stable, and efficient, only for people to tell us that they are unnecessarily excluded.

    MIL OSI Economics –

  • MIL-OSI Economics: Joachim Nagel: Introducing a digital euro – the cross-border dimension

    Source: Bank for International Settlements

    Check against delivery 

    1 Introduction

    Dear Governor Das,

    dear colleagues,

    ladies and gentlemen,

    I am delighted to be here with you today, at this wonderful location, visiting this wonderful country – one of the cradles of world civilisation and culture. 

    The Reserve Bank of India is currently celebrating its foundation 90 years ago. My heartfelt congratulations to all members of staff on this anniversary! Last year, Indian real-time payment systems processed about 129 billion digital transactions.1 This means that 84% of electronic payment transactions took place in real time. During the same period, only about 19% of electronic payments worldwide were real-time transactions. In my view, this is impressive evidence of the excellent work the RBI has accomplished over the last few years.

    Payment systems and their cross-border interaction are also an important topic at this conference. This is because cross-border payments are an integral part of our globalised world. Historically, from the Renaissance to modern times, correspondent banks have acted as the bedrock for cross-border payment transactions.2 However, even today, transferring funds by means of correspondent banking is often slow, involves many steps and may result in high and non-transparent fees. 

    Moreover, in the last two decades, correspondent banking has been subject to a downward trend, mainly due to increasingly strict compliance requirements. Between 2011 and 2022, the number of active correspondents decreased by roughly one third, while the value of cross-border payments increased by almost 40%.3 Obviously, this is an alarming trend in terms of market competition.

    To some extent, technical progress might be able to compensate for a tighter correspondent banking market. In particular, in the last decade, a number of FinTech companies have provided new opportunities to streamline cross-border payments using innovative methods like blockchain and digital wallets.  The FinTech revolution focused on private money. However, it now appears there may be another revolution on the horizon – this time involving payments in central bank money: the introduction of central bank digital currencies (CBDC).

    In my talk, I would like to address CBDC developments with a particular focus on cross-border payments. First, I will outline some general points about the potential impact and benefits of the introduction of CBDC for processing cross-border transactions. Second, I will aim to highlight this topic in the context of the Eurosystem’s work on a digital euro – the envisaged European retail CBDC.

    2 CBDCs and cross-border payments

    Given that there are correspondent banks and FinTechs working on digital innovations as well, let me begin with a question. What would be the additional benefits of CBDCs in the area of digital payments? The introduction of CBDCs would facilitate a setup of new infrastructures for digital payments. On the one hand, this makes high initial investment necessary. On the other hand, once a CBDC is established with its new infrastructure, it could catalyse broad improvements in payment systems, including cross-border transactions – by introducing new message standards and shorter process chains, for example.4

    Starting on a green field may be one major advantage of CBDCs. Experience shows that, in particular, implementing common standards is not an easy task. Take ISO 20022, for example.5 The International Organisation for Standardisation proposed this common standard for financial messages in cross-border payments in 2004. It will be probably more widely used in payment systems on a global level next year – 21 years after the initial proposal. This period feels even longer when you think of all the innovations that have taken place in the meantime – the first iPhone was presented in 2007, the concept of a decentralised blockchain in 2008.

    However, to be able to reap the benefits for cross-border payment, interoperability between CBDCs must be ensured early on. To this end, central banks should already begin to consider the best ways for interaction in the planning phase. In my view, we have a historic opportunity to vastly improve cross-border transactions by making different CBDCs interoperable from the very beginning.

    Indeed, a number of projects are already researching the best ways of making CBDCs interoperable. For instance, the Bank for International Settlement (BIS) Innovation Hub in Singapore and a number of national central banks in the Indo-Pacific region set up Project Dunbar to explore how a common platform for CBDCs could enable cheaper, faster and safer cross-border payments.6

    I am strongly in favour of a multilateral approach in this area, because this best serves the interests of all participants. If central banks proceed in a largely unilateral way instead, we not only risk inefficiencies, but also undesirable interferences. Consider a scenario in which a CBDC is made available for holders abroad in a unilateral way. In such a case, we could see currency substitution or appreciation pressure for the domestic currency. Also, the balance sheet of the CBDC emitting central bank could strongly expand. A knock-on effect may be that domestic monetary policy in countries that suffer from increased currency substitution becomes less effective. By contrast, a multilateral approach including reasonable holding limits could mitigate these risks.

    Meanwhile, the RBI has made valuable contributions to the topic of retail CBDC. The digital rupee based on blockchain technology was launched on 1 December 2022. It is issued by the central bank and distributed by commercial banks. As I understand it, the RBI intends to tap the potential for using CBDCs in cross-border payments as well.

    3 A digital euro: The cross-border dimension

    In the Eurosystem, we expect a digital euro to be launched in just a few years’ time. The primary goal of a digital euro is meet the domestic needs of the euro area. To some extent, however, this goal already includes a significant cross-border dimension. Let me explain what I mean by that. A quarter century on from the introduction of the euro, there is still no single pan-European solution for digital payments when people go shopping in stores or online. This means there is a risk that traditional cashless payment solutions offered by private European payment service providers will not match customer needs.

    To be fair, some euro area Member States have successfully implemented innovative digital solutions in the area of payments – I am thinking, for example, of the online payment system iDEAL in the Netherlands or Bizum Wallet in Spain. However, such payment solutions by themselves usually only function within national borders. Promising initiatives have been underway in recent years to widen the scope of these solutions. For example, iDEAL was successfully acquired by the European Payments Initiative, a company founded by several European banks and financial services companies. This initiative seeks to create a truly pan-European payment solution in the near to medium term. 

    This shows that the European payments sector has made meaningful progress; however, there are challenges further ahead. International payment providers, particularly those offering credit card schemes, still heavily dominate the European market for payment services – and even more when it comes to payments abroad.

    A digital euro would be a major step forward in this context. It would provide a standardised digital means of payment for day-to-day transactions throughout the euro area. Despite the need for a more integrated payment system, we are determined to prevent the Eurosystem’s footprint in the European financial system from becoming too large. We are therefore planning to issue a digital euro, but not to distribute it. This means that banks and other payment providers should assume the role of the CBDC interface between the Eurosystem and the customers.

    The euro area currently consists of 20 Member States, each of which has its own banking system with its own unique features. Against this background, I am sure you can imagine the overall complexity of our task. Therefore, our current focus is on making the digital euro accessible for all users within the euro area. We are investing great effort in our work on this, and we are constantly explaining what we do and why we do it, not least because a number of people are sceptical of CBDCs. 

    Once we have accomplished a digital euro for all users within the euro area, it will, in my view, be worth considering making it accessible to users outside the euro area as well. Rules for geographical access to a digital euro will be set down in legislation. If European legislation allows, access to a digital euro can also be granted to consumers and firms in the Member States of the European Economic Area outside the euro area. Selected non-EU countries can be included as well.7

    Ideally, the D€ would be interoperable with other CBDCs from the very start, for example, for person-to-person payments or commercial payments from or to firms outside the euro area. However, this is currently a vision for the future, since, as already mentioned, we first have to overcome numerous challenges to establish a retail digital euro that works within the euro area.

    4 Concluding remarks

    Let me conclude. So far, CBDCs are newcomers to the world of payment systems. We can only estimate how large a role they will end up playing in payment transactions. This is all the more true when it comes to cross-border payments.

    The scepticism about CBDCs in many quarters is not uncommon for many technological innovations. For example, in the early 1980s, “computerphobia” was a widespread phenomenon.8 This took a wide range of forms, even fear of physically touching a computer or feeling threatened by those who worked with them. Today, this may seem very strange to us. Computers have since become an essential day-to-day tool for us.

    And so we will continue our efforts to implement CBDCs. I am confident that this will ultimately make our payment systems better, faster and more efficient.

    MIL OSI Economics –

  • MIL-OSI Economics: Samsung Ushers in a New Era by Expanding Galaxy Ecosystem, Begins Pre-reserve for Galaxy Ring in India

    Source: Samsung

     
    Samsung, India’s largest consumer electronics brand, today announced the commencement of pre-reserve for its highly anticipated Galaxy Ring in India. The Galaxy Ring, which fits comfortably on users’ fingers like a traditional ring, is equipped with cutting-edge Galaxy AI features and sensors to deliver a differentiated experience.
     
    The Galaxy Ring adorns a titanium finish for enhanced durability and comes with an IP68 rating for water and dust resistance. The Galaxy Ring is rated 10ATM as it is built to withstand water depths of up to 100 meters, performing seamlessly in all conditions.
     
    Customers can pre-reserve their Galaxy Ring by paying a token amount of INR 1999 on Samsung.com, select retail stores, Amazon.in and Flipkart.com.
     
    Customers who pre-reserve the Galaxy Ring during this period will receive a complimentary Wireless Charger Duo worth INR 4999 upon purchase.
     
    Ushering a new era in the wearable device portfolio, Galaxy Ring features technology that helps users understand their health and body mannerisms easily. Blending a sleek, timeless design with cutting-edge health tracking features, Galaxy Ring will be available in 9 different sizes, ranging from size 5 to size 13.
     
    Offering a compact, sophisticated solution for users seeking seamless connectivity and wellness monitoring, Samsung India will provide its customers the option to get a sizing kit to ensure best fit before purchasing Galaxy Ring.
     
    Weighing just 2.3 grams (for size 5) with a narrow 7.0 mm width, Galaxy Ring is ultra-lightweight and compact, designed for providing comfort, during both day and night wear. It offers up to 7 days of battery life, providing users with a long-lasting endurance best suited for busy lifestyles.
     
    Powered by Samsung’s innovative “Health AI,” Galaxy Ring will deliver personalized health experiences that track users’ energy levels, sleep stages, activity, heart rate, and stress levels. It allows users to set and forget, simplifying health tracking while providing personalized coaching and insights.
     
    Galaxy Ring also integrates effortlessly with other devices in the Galaxy ecosystem, enhancing the connected experience for users. Galaxy Ring further offers features like 24/7 health tracking in synergy with Galaxy smartwatches, gesture controls, and Smart Find for added convenience.

    MIL OSI Economics –

  • MIL-OSI Economics: A new Chrome partnership to support underrepresented creatives

    Source: Google

    Today at the Adobe MAX creativity conference at the Miami Beach Convention Center, we’re sharing details about a new collaboration to help creatives take their work to the next level. Starting today, Chrome is partnering with Adobe and ADCOLOR to support underrepresented artists, marketers and other creative professionals with one-year subscriptions to Adobe Express Premium and Adobe Creative Cloud, at no cost. With Express, there’s no need to download or install software — and you can work right in your browser.

    You likely depend on the web for all sorts of professional and personal tasks, but you might not know you can use your browser, like Chrome, to access advanced digital tools to create, edit, collaborate on and share content. Through this partnership, we want to empower a more diverse set of creators to build digital experiences on the web and expand access to Adobe’s best-in-class tools available.

    ADCOLOR aims to create a community of diverse professionals to support one another and help ensure innovative ideas receive the recognition they deserve. Throughout 2024 and 2025, the ADCOLOR team will select subscription recipients from underrepresented groups, such as Black, Indigenous, disabled and LGBTQ+ communities, based on the needs of individuals and communities. If you’re chosen, you’ll have access to the collection of Express Premium and Creative Cloud desktop or mobile tools, including Photoshop and Lightroom, for a year after activating your subscription.

    Want to learn more? If you’re attending Adobe MAX, you can come by the Chrome booth (booth 902) for more information in person. And stay tuned for more details about the application process coming out of the ADCOLOR conference, which will be happening in Los Angeles, CA from November 14 to 16.

    To help showcase how tech tools can boost creative projects, at Adobe MAX we’ll also host an in-person workshop with multidisciplinary artist and graphic designer Temi Coker.

    Born in Lagos, Nigeria, Temi initially pursued biomedical engineering, but his passion for visual storytelling led him to digital media, where he discovered the power of merging photography, design and technology. In the workshop, Temi will share his insights about using Photoshop on Chrome, guiding attendees through the top five things he learned while transforming his 2D designs into captivating 3D creations. And if you’re at the event today, be sure to register for the session and drop by our booth for the workshop at 5:15 P.M. ET.

    MIL OSI Economics –

  • MIL-OSI Economics: Chamber pulse: Global markets, local landscapes

    Source: International Chamber of Commerce

    Headline: Chamber pulse: Global markets, local landscapes

    The survey at a glance

    200

    Over 200 chambers of commerce surveyed

    96

    Respondents from 96 countries spanning five continents

    90

    Representing 90% of global GPD

    Global business environment, constraints and outlook: The chamber view

    While chambers generally hold a positive view of the current business environment, there are significant regional differences. Negative perceptions are concentrated in countries facing political and economic instability. Nearly half of respondents believe that the global trade environment has hampered business operations.

    At the aggregate level, the main constraints for businesses are

    • shortage of labour or skilled labour,
    • inflation,
    • geopolitical tensions,
    • taxation, and
    • financial problems.

    But the hurdles businesses face tend to vary depending on the region.

    The global outlook remains largely positive. Nevertheless, some regions, notably MENA and South Asia, anticipate a more pessimistic future, with 20% of respondents in these areas expecting a bleak business outlook.

    Artificial intelligence continues to spark debate

    Seven out of 10 respondents see AI as both a risk and an opportunity. The uncertainty around the future prospects of AI is linked to its limited application to certain sectors with high innovation.

    Inflation and limited access to finance still weigh heavily on businesses

    Over 80% of respondents expect inflation to rise, affecting operating costs, wages, supply chains and competitiveness, with concerns especially pronounced in North America and Sub-Saharan Africa.

    The economic environment and tight financial conditions hinder access to finance.

    Businesses and the climate transition: what is at stake?

    Businesses are adapting to climate change policies by adopting green technologies, developing sustainable products, and diversifying energy sources. In South Asia and Sub-Saharan Africa, diversifying energy sources is the primary solution for more than 80% of respondents. In Latin America, Europe and Central Asia, the focus is on developing sustainable products or services.

    The main challenges in addressing climate change centre on how much funding is available and how to implement changes. Opportunities for businesses include gaining a competitive advantage through green practices and creating jobs in green industries.

    To support small- and medium-sized enterprises in the climate transition, chambers insist on the need to provide fiscal support, promote the adoption of digital technologies, and enhance collaboration within supply chains.

    For further information please contact Melanie Laloum, ICC Lead Economist, or Leonardo Barbosa, Lead, ICC WCF Governance and Operations.

    MIL OSI Economics –

  • MIL-OSI Economics: DG Okonjo-Iweala at World Food Forum: Trade is vital for ensuring food security

    Source: World Trade Organization

    The Director-General recalled the strengthened partnership between the WTO and the FAO in the areas of food and agriculture. She highlighted the WTO’s ongoing efforts to update trade rules, stressing that the multilateral trading system must be complemented by domestic policies that reduce distortions and enhance competition. She pointed to the importance of “policies that provide essential public goods to farmers such as research, pest and disease control, efficient water management, and extension services that are needed to improve productivity and sustainability.”

    Her full remarks are below:

    Director-General QU Dongyu,
    Your royal highnesses,
    Excellencies,
    Distinguished delegates,
    Ladies and gentlemen,

    I’m delighted to join you in opening this year’s World Food Forum.

    My main message to you is that trade — and the World Trade Organization — are vital parts of an agrifood system that can deliver good food for people now and in the years ahead.

    My remarks today will look at three areas: the challenges ahead for farming and food security; how trade can help; and the role of the WTO.

    First, the challenges.

    The FAO’s latest figures show around 733 million people are facing hunger — most of them in Africa and South Asia [1]. At our current pace, we won’t meet Sustainable Development Goal to end hunger and malnutrition by 2030.

    Climate change is a growing threat to food security, affecting every aspect of our food systems, and exacerbating the sector’s problems with water and land management, biodiversity loss, and deforestation. 55% of the world’s food production occurs in areas experiencing drying or unstable trends in total water storage.

    Agricultural production and consumption continues to be distorted by trade restrictions and subsidies

    In 54 countries analysed by the OECD, support provided to individual producers averaged USD 630 billion per year [2] from 2020 to 2022.* This support often has environmentally harmful effects, encouraging the overuse of fossil fuels, energy and water.

    The distance between business as usual and truly sustainable food systems is considerable. The FAO has estimated that our current agri-food systems impose “hidden” health, environmental, and social costs equivalent to at least USD 10 trillion per year. [3]

    Turning now to trade, the case for how it can help is straightforward: about one in four calories consumed is traded.

    Between 2000 and 2022, agricultural trade grew five-fold, rising across all world regions. [4] The average applied tariff on agricultural goods has fallen [5] from 13 percent in 2005 to just 5.8 percent in 2022, helping make food more affordable and available, while incentivizing exporters to ramp up production in response to international demand.

    Trade has contributed to food security and resilience: For example, when the war in Ukraine cut off Ethiopia from its traditional source of wheat imports, the existence of deep and diversified global markets meant it could source from Argentina and the United States instead.

    The Global Commission on the Economics of Water, which I co-chair, will issue a report later this week that highlights the role of ‘virtual water trade’ in agriculture, through the water used to grow or make a traded product. It notes that trade can help mitigate water-related pressures, provided water’s price reflects its value and scarcity with targeted subsidies to those who cannot afford to pay, by allowing countries with abundant hydrological resources to specialize in producing water-intensive goods for export to water-scarce nations.

    For example, there are export opportunities here for several African countries who have been found to have abundant and shallow under-utilized ground water resources as well as land resources,  provided  of course these resources are well and innovatively managed.   In fact, based on these land and water resources, Africa not only can and should feed itself, using intra Africa food trade to manage supply and demand gaps but can also respond to external world demand. 

    Beyond trade’s contribution to ensuring that food is available, trade-led growth and income gains have contributed mightily to bringing down hunger in countries including China, Indonesia, the Philippines, Thailand, and Vietnam, to name a few. [6]

    Now we need to help others replicate this success, sustainably — including elsewhere in Asia and Africa.

    This brings me to the role of the WTO.

    The WTO provides a negotiating forum where members could lower trade barriers and reduce trade-distorting support, helping agricultural markets function better and freeing up billions of dollars’ worth of resources that could be put to better use. But the fact is that at a time when a comprehensive update to the global agricultural trade rulebook is long overdue, we have not been so successful in moving forward agricultural trade negotiations at the WTO. But we will never give up trying. Agriculture and a well- functioning agricultural trading system is too important to the world. 

    This past Thursday, I chaired a meeting of all WTO members, where we looked at how to revitalize the negotiations and set the stage for delivering at least some concrete results by our next Ministerial Conference in Cameroon in early 2026. We have hard work ahead of us and we also need political will. I implore all the Food Security and Agriculture Ministers here to back your Trade ministers and their Geneva based WTO ambassadors to exhibit appropriate flexibility in their negotiating positions so we can move past 2.5 decades of stagnation to a new era of modern agricultural trade rules fit to help feed the 21st century world. 

    In this regard, cotton, both a food and non food commodity, is of paramount importance to several countries worldwide. 

    Last week, I was in the Republic of Benin to mark World Cotton Day. And while we are supporting exciting efforts  there and in the Cotton Four plus countries in West and  Central Africa to add value to their products and tap into global markets for textiles and clothing, particularly in the sports apparel sector, I want to note for all concerned that this does not mean we are paying attention to the issue of trade  distorting domestic support that lowers cotton prices and weighs on the livelihoods of millions of farmers in cotton producing countries  around the world. 

    On the bright side, in pursuing agriculture reforms at the WTO, we have some recent accomplishments to build on.

    At our 12th Ministerial Conference in 2022, members committed to refrain from imposing export controls on humanitarian purchases by the World Food Programme — a step that the agency has said is helping to source food more quickly, and from more countries.

    Our landmark Agreement on Fisheries Subsidies will help ease pressure on the marine fish stocks that millions of people rely on for food and livelihood security. I urge you to help fast-track ratification of this agreement in your countries, and support the rapid conclusion of negotiations on Phase 2 of the Fisheries Subsidies Agreement on some outstanding issues so that the USD 22  billion being spent annually on harmful fisheries subsidies that can be repurposed to more beneficial uses. 

    I want to take a moment here to highlight the WTO’s appreciation for the work we do with the FAO.  In this regard, let me thank DG Qu Dongyu and Chief Economist Maximo Torero Cullen and their team for the excellent collaboration with the WTO. Our joint MoU signed last December ranges from work on fisheries and the associated trust fund, to supporting cotton, the Standards and Trade Development Facility and — last but not least — the Agriculture Market Information System. We look forward to continuing this collaboration whose aim is to assist FAO and WTO members. Collaboration between multilateral organizations brings coherence and congruence to helping members and the people they represent. 

    In conclusion, Excellencies, ladies and gentlemen. A free, fair, open and predictable MTS and modernized agricultural trade rules are critical to an agrifood system that can deliver good food to the world’s people today and tomorrow. But such a trading system must be complemented by domestic policies that reduce distortions and improve competition. It must be complemented by policies that provide essential public goods to farmers such as research, pest and disease control, efficient water management, and extension services that are needed to improve productivity and sustainability. 

    I am convinced that we can all work together, Multilateral organizations,  Governments, Farmers, Civil Society, Private sector, to enable people around the world to access the food and nutrition they need in a changing climate  and a changing and uncertain world.

    Thank you.

    *(NOTE: “support” is not the same here as “subsidies”, as it includes transfers from consumers to producers that result from border measures such as tariffs, in addition to budgetary outlays.).

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    MIL OSI Economics –

  • MIL-OSI Economics: ESPRIT module for Lunar Gateway orbital outpost set for a significant upgrade

    Source: Thales Group

    Headline: ESPRIT module for Lunar Gateway orbital outpost set for a significant upgrade

    Thales Alenia Space and ESA sign contract amendment to extend and optimize ESPRIT module

    Milan, October 14, 2024 – Thales Alenia Space, the joint venture between Thales (67%) and Leonardo (33%), has signed an amendment to its contract with the European Space Agency (ESA) to develop the ESPRIT[1] communications and refueling module for the future Lunar Gateway orbital outpost. Worth €164 million, the amendment provides for extending and optimizing the ESPRIT module for which Thales Alenia Space in France is the prime contractor, in collaboration with OHB, alongside Thales Alenia Space in Italy and in the UK.

    ESPRIT module on the Gateway ©Thales Alenia Space

    The ESPRIT module is composed of two main elements: Lunar Link[2] will ensure communications between the Gateway and the Moon, while Lunar View[3] will supply the station with xenon and chemical propellants to extend its lifetime. Lunar View features a pressurized volume with six large windows, offering a 360° view on the outside of the Gateway and the Moon, and will include a logistics area for storing cargo and supplies intended for the crew.

    This amendment to the ESPRIT contract provides for a significant increase in the size of Lunar View, which will now span 4.6 meters and be 6.4 meters long, with a total mass of 10 metric tons (versus 3.4 meters, 3 meters and 6 metric tons initially). This evolution is the result of NASA’s choice to launch Lunar View alongside a crewed Orion vehicle aboard the SLS Block 1B launcher, which offers more lift capacity than the launch vehicle previously planned.

    In particular, the extended Lunar View will:

    • Provide more storage space (6.5 m3) on-orbit and accommodate up to 1.5 metric tons of cargo at launch, thus reducing resupply flights to the Lunar Gateway;

    • Enable installation of two attachment points to accommodate the Canadarm3 mobile robotic arm system, supplied by the Canadian Space Agency (CSA), for operations such as inspecting, maintaining or repairing the Gateway, assisting astronauts during spacewalks, handling science experiments in lunar orbit, or catching spacecraft visiting the Gateway;

    • House the avionics suite equipment (computer, etc.) inside the module for easier maintenance and to avoid extravehicular activities if repairs are required.

    These upgrades will require all of Lunar View’s subsystems to be adapted, especially the electrical power and avionics subsystems and the software and crew interface equipment.

    Lunar Link is scheduled to launch in 2026 with the HALO module, while Lunar View is planned for delivery in 2029 for launch a year later, on the Artemis V mission.

    “I would like to thank ESA for supporting our industry and renewing its trust in our company’s expertise,” said Hervé Derrey, CEO of Thales Alenia Space. “Thanks to the perfect complementarity of our competences in Italy and in France, we are proud to be contributing our know-how to the Artemis program and to the Lunar Gateway orbital outpost, which are set to push the boundaries of lunar exploration and pave the way for future crewed deep-space exploration missions, with Mars in sight.”

    This contract consolidates Thales Alenia Space’s key role in crewed and robotic exploration of the Moon and deep space. The company is supplying critical systems for the Orion capsule’s European Service Module (ESM) and is currently developing two more pressurized modules for the Lunar Gateway: the Lunar International Habitat module (I-HAB) for ESA and the Habitation and Logistics Outpost (HALO) for Northrop Grumman. Thales Alenia Space has also signed a major contract with the Italian space agency ASI to launch the project to build the very first lunar Multi-Purpose Habitat (MPH).

    Industrial contributions to the ESPRIT module

    Thales Alenia Space in France is the program prime contractor. Thales Alenia Space in Italy is supplying the pressurized tunnel and windows and Thales Alenia Space in the UK is contributing to the chemical propellant refueling system, while OHB – as a main team member – is in charge of the mechanical and thermal subsystems for the non-pressurized parts of the module and the xenon refueling system. Thales Alenia Space in Belgium was selected after competitive bidding to supply the Remote Interface & Distribution Unit for Lunar Link and the Traveling Wave Tube Amplifiers. Thales Alenia Space in Spain will develop the S-band communication transponder and Thales Alenia Space in Italy the K-band transponder.

    A cislunar orbital station

    The Lunar Gateway orbital outpost is one of the pillars of NASA’s Artemis program to establish a sustained human presence on the Moon as a staging post for future interplanetary exploration missions. This program is an international collaboration between NASA (United States), ESA (Europe), JAXA (Japan) and CSA (Canada). The 40-metric-ton station will be assembled in space and placed in an elliptical lunar orbit. It will be equipped with a robotic arm and docking ports, and made up of habitation modules to accommodate long-duration crewed missions and provide electrical power, propulsion, logistics and communications. While not designed to be manned permanently, it will be able to support up to four astronauts for one to three months. Acquiring new experience on and around the Moon will prepare NASA to send the first humans to Mars in the years ahead, and the Lunar Gateway is set to play a vital role in this endeavor.

    ABOUT THALES ALENIA SPACE

    Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023. Thales Alenia Space has around 8,600 employees in 9 countries, with 16 sites in Europe and a plant in the US.

    http://www.thalesaleniaspace.com

    THALES ALENIA SPACE – PRESS CONTACTS

    Tarik Lahlou
    Tel: +33 (0)6 87 95 89 56
    tarik.lahlou@thalesaleniaspace.com

    Catherine des Arcis
    Tel: +33 (0)6 78 64 63 97
    catherine.des-arcis@thalesaleniaspace.com

    Cinzia Marcanio

    Tel.: +39 (0)6 415 126 85
    cinzia.marcanio@thalesaleniaspace.com

    MIL OSI Economics –

  • MIL-OSI Economics: WTO Agreement on Government Procurement, an inspiration for the WTO as a whole — DG

    Source: WTO

    Headline: WTO Agreement on Government Procurement, an inspiration for the WTO as a whole — DG

    The panels brought together key negotiators of the Agreement on Government Procurement (GPA), representatives from current GPA parties and external stakeholders, who highlighted the key role the Agreement plays in broadening international market access for public procurement, promoting sustainability and strengthening good governance. “This is the first WTO agreement to impose a specific obligation on its signatories to prevent corrupt practices,” DG Okonjo-Iweala stressed.
    Outlining the benefits of the GPA 2012 for governments and citizens, DG Okonjo-Iweala said: “At the WTO, delivering results that improve people’s lives and livelihoods is the top priority. … Opening up public tenders to potential suppliers from other GPA parties means that governments can get better-quality goods and services at more competitive prices. And delivering better and more affordable public services improves people’s lives.”
    Panelists also discussed how to harness the benefits of the GPA 2012 for the future. This includes optimizing the use of provisions of the Agreement to support innovative practices and sustainability efforts by the parties. Also under discussion was the use of data on current and upcoming government procurement opportunities to enhance competition, achieve greater value for money and comply with the GPA requirement to provide statistics on contracts covered by the GPA 2012.
    The initial version of the Agreement — known as the “GPA 1994” — was amended in March 2012 to enhance transparency in procurement practices, improve transitional measures for developing economies and introduce provisions related to the use of e-procurement tools. With the addition of more government entities (ministries and agencies), new services and other areas of government procurement activities, the value of parties’ market access commitments increased by an estimated USD 80-100 billion annually. Altogether, the value of the procurement activities covered by the Agreement is currently estimated to be worth over USD 1.7 trillion per year.
    Reflecting on the evolution and renegotiation of the GPA over time, DG Okonjo-Iweala said: “The GPA 2012 is an inspiration for the WTO as a whole. It is an example we should bear in mind as we work to make the entirety of the WTO rulebook fit for purpose to meet the needs of the 21st century.”
    The GPA 2012 currently has 22 parties covering 49 WTO members — the European Union and its 27 member states count as one party. The full list can be found here.
    The recording of the event is available here.
    An infographic explaining the Agreement can be accessed here.  
    More information about the GPA is available here.

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    MIL OSI Economics –

  • MIL-OSI Economics: Verizon Foundation donates $2 Million towards Hurricane Helene and Hurricane Milton relief efforts

    Source: Verizon

    Headline: Verizon Foundation donates $2 Million towards Hurricane Helene and Hurricane Milton relief efforts

    NEW YORK – The Verizon Foundation is stepping up to support communities devastated by Hurricane Helene and Hurricane Milton with a total of $2 million in donations to aid relief and recovery efforts. The contributions will provide essential support and rebuilding efforts to those who have been devastated by the storms.

    The donations include $1 million to the American Red Cross to assist with emergency relief and recovery efforts for both Hurricane Helene and Hurricane Milton.

    The remaining $1 million is directed to various regional organizations providing crucial services on the ground in the hardest-hit areas, including $400,000 allocated to organizations in Florida for Hurricane Milton relief and $600,000 to support communities in Georgia and North Carolina affected by Hurricane Helene:

    • $400,000 to Volunteer Florida: Supporting Hurricane relief efforts, these funds will assist organizations providing food, shelter, and recovery resources to those affected by the storm.
    • $600,000 to Georgia and North Carolina: Focused on aiding communities devastated by Hurricane Helene, these contributions will help address immediate needs like food and shelter while also supporting longer-term recovery and rebuilding initiatives. Specifically, these contributions include: 
      ○ $300,000 to NC Hurricane Helene Fund–United Way of North Carolina
      ○ $50,000 to Second Harvest of South Georgia, Inc., Valdosta, Georgia
      ○ $50,000 to United Way of Greater Valdosta, Georgia
      ○ $100,000 to Community Foundation for the CSRA, Augusta, Georgia
      ○ $100,000 to Weathered But Strong Fund–Georgia Foundation for Agriculture

    “We are committed to supporting communities when they need it most, and we are working closely with local organizations to ensure resources reach those who need them urgently,” said Donna Epps, Verizon’s Chief Responsible Business Officer. “In the aftermath of Hurricane Helene and Hurricane Milton, the Verizon Foundation is here to support the American Red Cross and other trusted partners as they provide relief for communities to recover and rebuild.”

     “The American Red Cross is working around the clock to provide help and hope to people across the country impacted by disasters big and small, including storms and countless other crises,” said Cliff Holtz, president and CEO of the American Red Cross. “We cannot thank Verizon Foundation enough for their generosity as we work together to offer relief and comfort to those in need.”

    “On behalf of Volunteer Florida, we are deeply grateful for the Verizon Foundation’s generous $400,000 donation in response to Hurricanes Helene and Milton. This contribution will have an immediate and lasting impact on our communities as they recover and rebuild,” said Volunteer Florida CEO Josie Tamayo. “The generosity of our donors allows us to provide essential resources and support to those in need during these challenging times.”

    “We want to express our gratitude to Verizon for the additional contribution of $300,000 to the NC Disaster Relief Fund. Your commitment to supporting our community in times of need makes a profound difference in the lives of those affected by Hurricane Helene,” said President and CEO of United Way of North Carolina, Brittany Pruitt Fletcher. “This generous donation will help provide essential resources and aid to individuals and families working to rebuild their lives. Your dedication to making a positive impact showcases the true spirit of corporate responsibility and compassion. Thank you for standing with us during this challenging time. Together, we are stronger, and your support brings hope and healing to our community.”

    “The Greater Valdosta United Way is honored to receive these funds so recovery and healing can happen. It will take communication and connections which Verizon understands for communities to recover. Thank you for stepping up and supporting South Georgia,” said CEO of Greater Valdosta United Way, Michael Smith.

    “Second Harvest of South Georgia is grateful for this gift from Verizon. It will help the impacted families of South Georgia following the devastating destruction caused by hurricane Helene,” said President and CEO of Second Harvest of South Georgia Franklin J. Richards II. Gifts like this truly make a difference in these difficult times and help Second Harvest of South Georgia provide much needed food and resources to all the citizens that were affected by the storm.”

    “I’m incredibly thankful to the team at Verizon, not only for their generous donation of $100,000 to the Weathered But Strong Hurricane Relief Fund but also for all their work to get Georgians back online in the aftermath of Hurricane Helene,” said Commissioner of Georgia Department of Agriculture, Tyler Harper. “When disaster hits our state, we need all hands on deck to help our fellow Georgians recover, and this donation will go a long way to help Georgia farm families bounce back stronger than before.”

    MIL OSI Economics –

  • MIL-OSI Economics: Introducing a digital euro: The cross-border dimension

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Dear Governor Das,

    dear colleagues,

    ladies and gentlemen,

    I am delighted to be here with you today, at this wonderful location, visiting this wonderful country – one of the cradles of world civilisation and culture. 

    The Reserve Bank of India is currently celebrating its foundation 90 years ago. My heartfelt congratulations to all members of staff on this anniversary! Last year, Indian real-time payment systems processed about 129 billion digital transactions.[1] This means that 84% of electronic payment transactions took place in real time. During the same period, only about 19% of electronic payments worldwide were real-time transactions. In my view, this is impressive evidence of the excellent work the RBI has accomplished over the last few years.

    Payment systems and their cross-border interaction are also an important topic at this conference. This is because cross-border payments are an integral part of our globalised world. Historically, from the Renaissance to modern times, correspondent banks have acted as the bedrock for cross-border payment transactions.[2] However, even today, transferring funds by means of correspondent banking is often slow, involves many steps and may result in high and non-transparent fees. 

    Moreover, in the last two decades, correspondent banking has been subject to a downward trend, mainly due to increasingly strict compliance requirements. Between 2011 and 2022, the number of active correspondents decreased by roughly one third, while the value of cross-border payments increased by almost 40%.[3] Obviously, this is an alarming trend in terms of market competition.

    To some extent, technical progress might be able to compensate for a tighter correspondent banking market. In particular, in the last decade, a number of FinTech companies have provided new opportunities to streamline cross-border payments using innovative methods like blockchain and digital wallets.  The FinTech revolution focused on private money. However, it now appears there may be another revolution on the horizon – this time involving payments in central bank money: the introduction of central bank digital currencies (CBDC).

    In my talk, I would like to address CBDC developments with a particular focus on cross-border payments. First, I will outline some general points about the potential impact and benefits of the introduction of CBDC for processing cross-border transactions. Second, I will aim to highlight this topic in the context of the Eurosystem’s work on a digital euro – the envisaged European retail CBDC.

    2 CBDCs and cross-border payments

    Given that there are correspondent banks and FinTechs working on digital innovations as well, let me begin with a question. What would be the additional benefits of CBDCs in the area of digital payments? The introduction of CBDCs would facilitate a setup of new infrastructures for digital payments. On the one hand, this makes high initial investment necessary. On the other hand, once a CBDC is established with its new infrastructure, it could catalyse broad improvements in payment systems, including cross-border transactions – by introducing new message standards and shorter process chains, for example.[4] 

    Starting on a green field may be one major advantage of CBDCs. Experience shows that, in particular, implementing common standards is not an easy task. Take ISO 20022, for example.[5] The International Organisation for Standardisation proposed this common standard for financial messages in cross-border payments in 2004. It will be probably more widely used in payment systems on a global level next year – 21 years after the initial proposal. This period feels even longer when you think of all the innovations that have taken place in the meantime – the first iPhone was presented in 2007, the concept of a decentralised blockchain in 2008.

    However, to be able to reap the benefits for cross-border payment, interoperability between CBDCs must be ensured early on. To this end, central banks should already begin to consider the best ways for interaction in the planning phase. In my view, we have a historic opportunity to vastly improve cross-border transactions by making different CBDCs interoperable from the very beginning.

    Indeed, a number of projects are already researching the best ways of making CBDCs interoperable. For instance, the Bank for International Settlement (BIS) Innovation Hub in Singapore and a number of national central banks in the Indo-Pacific region set up Project Dunbar to explore how a common platform for CBDCs could enable cheaper, faster and safer cross-border payments.[6] 

    I am strongly in favour of a multilateral approach in this area, because this best serves the interests of all participants. If central banks proceed in a largely unilateral way instead, we not only risk inefficiencies, but also undesirable interferences. Consider a scenario in which a CBDC is made available for holders abroad in a unilateral way. In such a case, we could see currency substitution or appreciation pressure for the domestic currency. Also, the balance sheet of the CBDC emitting central bank could strongly expand. A knock-on effect may be that domestic monetary policy in countries that suffer from increased currency substitution becomes less effective. By contrast, a multilateral approach including reasonable holding limits could mitigate these risks.

    Meanwhile, the RBI has made valuable contributions to the topic of retail CBDC. The digital rupee based on blockchain technology was launched on 1 December 2022. It is issued by the central bank and distributed by commercial banks. As I understand it, the RBI intends to tap the potential for using CBDCs in cross-border payments as well.

    3 A digital euro: The cross-border dimension

    In the Eurosystem, we expect a digital euro to be launched in just a few years’ time. The primary goal of a digital euro is meet the domestic needs of the euro area. To some extent, however, this goal already includes a significant cross-border dimension. Let me explain what I mean by that. A quarter century on from the introduction of the euro, there is still no single pan-European solution for digital payments when people go shopping in stores or online. This means there is a risk that traditional cashless payment solutions offered by private European payment service providers will not match customer needs.

    To be fair, some euro area Member States have successfully implemented innovative digital solutions in the area of payments – I am thinking, for example, of the online payment system iDEAL in the Netherlands or Bizum Wallet in Spain. However, such payment solutions by themselves usually only function within national borders. Promising initiatives have been underway in recent years to widen the scope of these solutions. For example, iDEAL was successfully acquired by the European Payments Initiative, a company founded by several European banks and financial services companies. This initiative seeks to create a truly pan-European payment solution in the near to medium term. 

    This shows that the European payments sector has made meaningful progress; however, there are challenges further ahead. International payment providers, particularly those offering credit card schemes, still heavily dominate the European market for payment services – and even more when it comes to payments abroad.

    A digital euro would be a major step forward in this context. It would provide a standardised digital means of payment for day-to-day transactions throughout the euro area. Despite the need for a more integrated payment system, we are determined to prevent the Eurosystem’s footprint in the European financial system from becoming too large. We are therefore planning to issue a digital euro, but not to distribute it. This means that banks and other payment providers should assume the role of the CBDC interface between the Eurosystem and the customers.

    The euro area currently consists of 20 Member States, each of which has its own banking system with its own unique features. Against this background, I am sure you can imagine the overall complexity of our task. Therefore, our current focus is on making the digital euro accessible for all users within the euro area. We are investing great effort in our work on this, and we are constantly explaining what we do and why we do it, not least because a number of people are sceptical of CBDCs. 

    Once we have accomplished a digital euro for all users within the euro area, it will, in my view, be worth considering making it accessible to users outside the euro area as well. Rules for geographical access to a digital euro will be set down in legislation. If European legislation allows, access to a digital euro can also be granted to consumers and firms in the Member States of the European Economic Area outside the euro area. Selected non-EU countries can be included as well.[7]

    Ideally, the D€ would be interoperable with other CBDCs from the very start, for example, for person-to-person payments or commercial payments from or to firms outside the euro area. However, this is currently a vision for the future, since, as already mentioned, we first have to overcome numerous challenges to establish a retail digital euro that works within the euro area.

    4 Concluding remarks

    Let me conclude. So far, CBDCs are newcomers to the world of payment systems. We can only estimate how large a role they will end up playing in payment transactions. This is all the more true when it comes to cross-border payments.

    The scepticism about CBDCs in many quarters is not uncommon for many technological innovations. For example, in the early 1980s, “computerphobia” was a widespread phenomenon.[8] This took a wide range of forms, even fear of physically touching a computer or feeling threatened by those who worked with them. Today, this may seem very strange to us. Computers have since become an essential day-to-day tool for us.

    And so we will continue our efforts to implement CBDCs. I am confident that this will ultimately make our payment systems better, faster and more efficient.

     

    Footnotes:

    1. ACI Worldwide Inc., It’s prime time for real-time: Real-time payments adoption and growth around the globe, Payment report 2024. 
    2. Lothian, J. R. (2002), The internationalization of money and finance and the globalization of financial markets, Journal of International Money and Finance 21, Vol. 6, p. 699-724.
    3. Garratt, R., Wilkens, P. K. and H. S. Shin, Next generation correspondent banking, BIS Bulletin No. 78, 30 May 2024.
    4. Deutsche Bundesbank, Cross-border interoperability of central bank digital currency, Monthly Report, July 2022, p. 59-75.
    5.  ISO 20022 | ISO20022
    6.  Project Dunbar – International settlements using multi-CBDCs (mas.gov.sg)
    7.  International aspects of CBDCs: update on digital euro (europa.eu)
    8. LaFrance, A., When People Feared Computers, The Atlantic, 30 March 2015.

    MIL OSI Economics –

  • MIL-OSI Economics: RBI imposes monetary penalty on SG Finserve limited

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated October 1, 2024, imposed a monetary penalty of ₹28.30 lakh (Rupee Twenty Eight Lakh Thirty Thousand only) on SG Finserve limited (formerly known as M/s Moongipa Securities Limited) (the company) for non-compliance with specific conditions under which the company was issued the Certificate of Registration (CoR) by RBI under section 45IA(5) of Reserve Bank of India Act, 1934 (RBI Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (a) of sub-section (1) of Section 58G read with sub-section (6) of Section 58 B of the RBI Act.

    The financial statements of the company for FY 2022-23 revealed inter alia, non-compliance with the specific conditions of the CoR. Based on the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said conditions of the CoR.

    After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:

    The company had accepted public funds and extended loans in violation of the specific conditions of the CoR issued to it.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1284

    MIL OSI Economics –

  • MIL-OSI Economics: Emma Willmott trading as Orange Cat Accounting

    Source: Isle of Man

    Notice is hereby given that Emma Willmott trading as Orange Cat Accounting, which was registered under the Designated Businesses (Registration & Oversight) Act 2015, has been de-registered in accordance with 12(1)(a) of this Act with effect from 14/10/2024.

    MIL OSI Economics –

  • MIL-OSI Economics: Appointment of Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya Dr…

    Source: African Development Bank Group

    The African Development Bank Group is pleased to announce the appointment of Dr. Kennedy K. Mbekeani as Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya, effective from 16th October 2024.

    Dr. Kennedy K. Mbekeani, a citizen of Malawi brings over 25 years of senior level experience in development finance, project management, policy advisory services, and knowledge generation across country and regional levels. Prior to this appointment, he served as Deputy Director General for the Bank’s Southern Africa Regional Development, Integration and Business Delivery Office.

    He holds a Bachelor of Social Science (Economics and Statistics) degree from the University of Malawi, an MPhil in Monetary Economics from the University of Glasgow, and both an MA and PhD in International Economics from the University of California. He has authored numerous publications focusing on trade, regional integration, and infrastructure development in Africa.

    In his previous role as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, Dr. Mbekeani led the Bank’s business development and delivery for sovereign, non-sovereign investments and provided advisory services to South Africa, Lesotho, Botswana, Eswatini, Namibia and Mauritius. His efforts contributed to the Bank’s reputation as a trusted partner for high impact development projects in the region. He also managed relationships with key government and private sector, positioning the Bank for success.

    Dr. Mbekeani joined the Bank in 2009 as Chief Trade and Regional Integration Officer. He has held various senior roles including Lead Regional Economist at the South African Resource Centre, Officer in Charge and Acting Regional Director of the Bank’s South African Resource Centre in South Africa, and Officer in Charge of the Bank’s Ghana Country Office. When he served Country Manager for Uganda, he successfully expanded the Bank’s portfolio to over $2 billion.

    Before joining the Bank, Dr. Mbekeani worked for the United Nations Development Programme as a Trade, Debt and Globalisation Advisor for East and Southern Africa. He also served as Senior Research Fellow at the Botswana Institute for Development Policy Analysis, and Senior Economist at the National Institute for Economic Policy in South Africa.

    Commenting his appointment, Dr. Mbekeani said: “I am grateful and feel honoured by the confidence President Adesina placed in me through this appointment, as Director General for the East Africa Regional Development, Integration and Business Delivery Office and Country Manager for Kenya. I look forward to working with the President, the Board of Directors, Senior Management, our teams and stakeholders to enhance the Bank’s operational efficiency, effectiveness and drive impactful developmental outcomes across the region”.

    Commenting the appointment, the President of the African Development Bank Group, Dr. Akinwumi Adesina said: “I am delighted to appoint Dr. Kennedy Mbekeani as Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya. Kennedy brings extensive experience in managing operations, policy dialogue, coupled with astute diplomacy and well-tested ability to work effectively with countries and development partners. He had previously worked in East Africa as the Country Manager for Uganda, before being promoted to the position of Deputy Director General of the Southern Africa Regional Development, Integration and Business Delivery Office. His knowledge of the Eastern Africa region and well-proven experience in delivering robust operations for the public and private sectors will strongly benefit the work and operations of the African Development Bank Group in East Africa and all countries in the region”.

    MIL OSI Economics –

  • MIL-OSI Economics: Appointment of Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office Mrs. Moono Mupotola

    Source: African Development Bank Group

    The African Development Bank Group is pleased to announce the appointment of Mrs. Moono Mupotola as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, effective from 16th October 2024.

    Mrs. Moono Mupotola, a Zambian national, brings over 25 years of development experience across Africa to her new role, with a proven track record in infrastructure development, trade and regional integration.

    Prior to this appointment, Mrs. Mupotola served as the Bank’s Country Manager for Zimbabwe since December 2020. During her tenure, she played an instrumental role in the Bank’s support to Zimbabwe in its re-engagement agenda with the international community and in its efforts to address outstanding debt and arrears obligations.

    Mrs. Mupotola’s experience with the Bank began in 2009, when she was appointed Division Manager, Regional Integration and Trade. She was appointed as Director of NEPAD, Regional Integration & Trade in 2015, and Director of Regional Integration Coordination Office in 2018.

    Her oversight of the Lusophone Compact, a program that supports private sector in six Portugues-speaking Africa countries, demonstrated Mrs. Mupotola’s commitment to advancing regional integration. She also initiated the Bank’s Africa Trade Fund, the Visa Openness Index, and the Regional Integration Index with the United Nations Economic Commission for Africa and the African Union Commission. She managed the African Development Fund’s Regional Operations Envelope and oversaw the Bank’s regional project preparation facility.

    Mrs. Mupotola led the Bank’s trade and regional integration agenda by supporting research, infrastructure projects, capacity-building programmes and the reform of regulations and policies in regional member countries.

    Before joining the African Development Bank Group, Mrs. Mupotola held several senior positions, including Regional Policy Specialist for the Food and Agriculture Organization in Zimbabwe, Trade Specialist at the Southern African Development Community Trade Hub in Botswana and Zimbabwe. She served as the Division Head of Trade and Marketing at the Ministry of Agriculture in Namibia. She also served as a Researcher at the Namibian Economic Policy Research Unit and a Banker at Zambia National Commercial Bank.

    She holds a Bachelor of Arts degree in Economics from Bennington College, Vermont, United States of America and a MPhil of Philosophy from Cambridge University, United Kingdom and post-graduate qualifications in leadership and strategic management from the Wharton Business School, USA, and the Cranfield Business School, United Kingdom.

    Commenting on her appointment, Mrs. Mupotola said: “I am deeply honoured by this opportunity and grateful to President Adesina for his trust and confidence in me. The role of Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, is challenging and exciting. I look forward to working efficiently with our teams and stakeholders to deliver on the African Development Bank’s vision and High 5 priorities for sustainable development”.

    Commenting on the appointment, the President of the African Development Bank Group, Dr. Akinwumi A. Adesina said: “I am delighted to appoint Mrs. Moono Mupotola as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office. Moono has extensive experience in regional operations, having served previously as Director of Regional Operations. She was subsequently assigned to Zimbabwe as Country Manager. Moono has demonstrated exceptional leadership, diplomatic acumen and strong execution capacity in working with the Government of Zimbabwe and all the development partners in advancing the structured dialogues for the arrears clearance for Zimbabwe, as well as major reforms. Her astute leadership and experience and in-depth knowledge of the countries in the Southern Africa region will significantly advance the work and partnerships of the African Development Bank Group in the region”.

    MIL OSI Economics –

  • MIL-OSI Economics: Microsoft’s guidance to help mitigate Kerberoasting cyberattacks

    Source: Microsoft

    Headline: Microsoft’s guidance to help mitigate Kerberoasting cyberattacks

    As cyberthreats continue to evolve, it’s essential for security professionals to stay informed about the latest attack vectors and defense mechanisms. Kerberoasting is a well-known Active Directory (AD) attack vector whose effectiveness is growing because of the use of GPUs to accelerate password cracking techniques. 

    Because Kerberoasting enables cyberthreat actors to steal credentials and quickly navigate through devices and networks, it’s essential for administrators to take steps to reduce potential cyberattack surfaces. This blog explains Kerberoasting risks and provides recommended actions administrators can take now to help prevent successful Kerberoasting cyberattacks. 

    What is Kerberoasting? 

    Kerberoasting is a cyberattack that targets the Kerberos authentication protocol with the intent to steal AD credentials. The Kerberos protocol conveys user authentication state in a type of message called a service ticket which is encrypted using a key derived from an account password. Users with AD credentials can request tickets to any service account in AD.  

    In a Kerberoasting cyberattack, a threat actor that has taken over an AD user account will request tickets to other accounts and then perform offline brute-force attacks to guess and steal account passwords. Once the cyberthreat actor has credentials to the service account, they potentially gain more privileges within the environment. 

    AD only issues and encrypts service tickets for accounts that have Service Principal Names (SPNs) registered. An SPN signifies that an account is a service account, not a normal user account, and that it should be used to host or run services, such as SQL Server. Since Kerberoasting requires access to encrypted service tickets, it can only target accounts that have an SPN in AD. 

    SPNs are not typically assigned to normal user accounts which means they are better protected against Kerberoasting. Services that run as AD machine accounts instead of as standalone service accounts are better protected against compromise using Kerberoasting. AD machine account credentials are long and randomly generated so they contain sufficient entropy to render brute-force cyberattacks impractical.  

    The accounts most vulnerable to Kerberoasting are those with weak passwords and those that use weaker encryption algorithms, especially RC4. RC4 is more susceptible to the cyberattack because it uses no salt or iterated hash when converting a password to an encryption key, allowing the cyberthreat actor to guess more passwords quickly. However, other encryption algorithms are still vulnerable when weak passwords are used. While AD will not try to use RC4 by default, RC4 is currently enabled by default, meaning a cyberthreat actor can attempt to request tickets encrypted using RC4. RC4 will be deprecated, and we intend to disable it by default in a future update to Windows 11 24H2 and Windows Server 2025. 

    What are the risks associated with Kerberoasting? 

    Kerberoasting is a low-tech, high-impact attack. There are many open-source tools which can be used to query potential target accounts, get service tickets to those accounts, and then use brute force cracking techniques to obtain the account password offline. 

    This type of password theft helps threat actors pose as legitimate service accounts and continue to move vertically and laterally through the network and machines. Kerberoasting typically targets high privilege accounts which can be used for a variety of attacks such as rapidly distributing malicious payloads like ransomware to other end user devices and services within a network.    

    Accounts without SPNs, such as standard user or administrator accounts, are susceptible to similar brute-force password guessing attacks and the recommendations below can be applied to them as well to mitigate risks. 

    How to detect Kerberoasting? 

    Administrators can use the techniques described below to detect Kerberoasting cyberattacks in their network. 

    • Check for ticket requests with unusual Kerberos encryption types. Cyberthreat actors can downgrade Kerberos ticket encryption to RC4 since cracking it is significantly faster. Admins can check the events in the Microsoft Defender XDR and filter the results based on the ticket encryption type to check for weaker encryption type usage.  
    • Check for repeated service ticket requests. Check if a single user is requesting multiple service tickets for Kerberoasting-vulnerable accounts in a short time period.  

    Recommendations to help prevent Kerberoasting from succeeding 

    Microsoft recommends that IT administrators take the following steps to help harden their environments against Kerberoasting: 

    • Use Group Managed Service Accounts (gMSA) or Delegated Managed Service Accounts (dMSA) wherever possible:  
      • These accounts are ideal for multi-server applications that require centralized credential management and enhanced security against credential-based attacks, such as IIS, SQL Server, or other Windows services running in a domain-joined environment. 
      • Group Managed Service Account (gMSA) is an Active Directory account type that allows multiple servers or services to use the same account with automatic password management and simplified SPN handling. Passwords for gMSAs are 120 characters long, complex, and randomly generated, making them highly resistant to brute-force cyberattacks using currently known methods.  
      • Delegated Managed Service Accounts (dMSA) are the newest iteration of managed service accounts available on Windows Server 2025. Like gMSAs, they restrict which machines can make use of the accounts and they provide the same password mitigations against Keberoasting. However, unlike gMSAs, dMSAs have the added benefit of supporting seamless migration of standalone service accounts with passwords to the dMSA account type. They can also be optionally integrated with Credential Guard so that even if the server using dMSA is compromised, the service account credentials remain protected.  
    • If customers cannot use gMSA or dMSA, then manually set randomly generated, long passwords for service accounts:  
      • Service account administrators should maintain at least a 14-character minimum password. If possible, we recommend setting even longer passwords and randomly generating them for service accounts which will provide better protection against Kerberoasting. This recommendation also applies to normal user accounts.  
      • Ban commonly used passwords and audit the passwords for service accounts so that there is an inventory of accounts with weak passwords and can be remediated.  
    • Make sure all service accounts are configured to use AES (128 and 256 bit) for Kerberos service ticket encryption: 
    • Audit the user accounts with SPNs:  
      • User accounts with SPNs should be audited. SPNs should be removed from accounts where they are not needed to reduce the cyberattack surface. 

    Conclusion 

    Kerberoasting is a threat to Active Directory environments due to its ability to exploit weak passwords and gain unauthorized access to service accounts. By understanding how Kerberoasting works and implementing the recommended guidance shared in this blog, organizations can significantly reduce their exposure to Kerberoasting.  

    We truly believe that security is a team effort. By partnering with Original Equipment Manufacturers (OEMs), app developers, and others in the ecosystem, along with helping people to be better at protecting themselves, we are delivering a Windows experience that is more secure by design and secure by default. The Windows Security Book is available to help you learn more about what makes it easy for users to stay secure with Windows.

    Learn more in the Windows Security Book

    Next steps with Microsoft Security

    To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity. 

    References  

    Directory Hardening Series – Part 4 – Enforcing AES for Kerberos – Microsoft Community Hub 

    Stopping Active Directory attacks and other post-exploitation behavior with AMSI and machine learning | Microsoft Security Blog 

     Network security Configure encryption types allowed for Kerberos – Windows 10 | Microsoft Learn,  

    Decrypting the Selection of Supported Kerberos Encryption Types – Microsoft Community Hub 

    Delegated Managed Service Accounts FAQ | Microsoft Learn 

    MIL OSI Economics –

  • MIL-OSI Economics: Review of Merchant Card Payment Costs and Surcharging

    Source: Reserve Bank of Australia

    The Reserve Bank of Australia (RBA) is commencing its Review into Retail Payments Regulation. This review will examine the costs merchants face when accepting card payments and the framework for surcharging. The RBA has today released an Issues Paper, inviting stakeholders to provide detailed feedback on the current regulatory framework and to suggest potential regulatory responses. This feedback will be crucial in shaping future reforms to ensure a safe and efficient payments system.

    Australians extensively use cards to pay for goods and services. They benefit from the convenience and security provided by card payments. However, in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers. These issues are linked, since merchants would be less likely to surcharge consumers if card payment costs were lower. It is timely, therefore, to review whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose. This recognises that many years have passed since these rules first came into effect.

    Stakeholders can provide written submissions by 3 December 2024.

    Detailed assessments of reform proposals would form the next stage of this review. If the Payments System Board forms a view that consultation on regulatory action is in the public interest, the RBA will further consult on any reform proposals prior to any decisions being made.

    MIL OSI Economics –

  • MIL-OSI Economics: Well-Being of Older People in East Asia: The People’s Republic of China, Japan, and the Republic of Korea

    Source: Asia Development Bank

    It focuses on depressive symptom scales and the impact of demographic, economic, social, and health factors. Although much of the differences of the results across the three countries is due to the differences in the characteristics of older people, significant unexplained differences remain. In particular, even after accounting for several factors, older people in the ROK are more likely to be depressed than in the PRC or Japan.

    MIL OSI Economics –

  • MIL-OSI Economics: Secretary-General of ASEAN to participate in the 9th ASEAN Ministerial Conference on Cybersecurity in Singapore

    Source: ASEAN

    At the invitation of H.E. Josephine Teo, Minister for Digital Development and Information, and Minister-in-Charge of Smart Nation and Cybersecurity of Singapore, Secretary-General of ASEAN, Dr. Kao Kim Hourn, will participate in the 9th ASEAN Ministerial Conference on Cybersecurity (AMCC), in Singapore, on 16-17 October 2024, held on the sidelines of the Singapore International Cyber Week. 

    The AMCC, first convened in 2016, serves as an interim, cross-pillar, ministerial-level platform to address the inherently cross-sectoral nature of cybersecurity issues.  Dr. Kao will also attend the AMCC special session with Dialogue Partners and hold bilateral meetings with the Ministers and Head of delegations from ASEAN’s external partner countries to discuss ways in enhancing regional cooperation to address emerging cyber threats, while also exploring ways to strengthen a rules-based multilateral order in cyberspace towards achieving open, secure and resilient cyberspace.
    The post Secretary-General of ASEAN to participate in the 9th ASEAN Ministerial Conference on Cybersecurity in Singapore appeared first on ASEAN Main Portal.

    MIL OSI Economics –

  • MIL-OSI Economics: Money Market Operations as on October 14, 2024

    Source: Reserve Bank of India
    (Amount in ₹ crore, Rate in Per cent)
      Volume
    (One Leg)    		 Weighted
    Average Rate    		 Range
    A. Overnight Segment (I+II+III+IV) 532,740.60 6.26 4.50-6.50
         I. Call Money 10,988.08 6.42 5.10-6.50
         II. Triparty Repo 369,234.60 6.24 6.20-6.45
         III. Market Repo 151,494.92 6.29 4.50-6.50
         IV. Repo in Corporate Bond 1,023.00 6.40 6.39-6.45
    B. Term Segment      
         I. Notice Money** 284.80 6.30 5.50-6.50
         II. Term Money@@ 704.00 – 6.65-7.25
         III. Triparty Repo 1,065.00 6.35 6.35-6.35
         IV. Market Repo 352.39 6.45 6.36-6.55
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo Mon, 14/10/2024 4 Fri, 18/10/2024 24,070.00 6.49
    3. MSF# Mon, 14/10/2024 1 Tue, 15/10/2024 1,982.00 6.75
    4. SDFΔ# Mon, 14/10/2024 1 Tue, 15/10/2024 94,487.00 6.25
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -116,575.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo Fri, 04/10/2024 14 Fri, 18/10/2024 44,275.00 6.49
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    5. On Tap Targeted Long Term Repo Operations€ Mon, 15/11/2021 1095 Thu, 14/11/2024 250.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 2,275.00 4.00
    6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 15/11/2021 1095 Thu, 14/11/2024 105.00 4.00
    Mon, 22/11/2021 1095 Thu, 21/11/2024 100.00 4.00
    Mon, 29/11/2021 1095 Thu, 28/11/2024 305.00 4.00
    Mon, 13/12/2021 1095 Thu, 12/12/2024 150.00 4.00
    Mon, 20/12/2021 1095 Thu, 19/12/2024 100.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 255.00 4.00
    D. Standing Liquidity Facility (SLF) Availed from RBI$       7,217.52  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -33,517.48  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -150,092.48  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on October 14, 2024 999,295.71  
         (ii) Average daily cash reserve requirement for the fortnight ending October 18, 2024 1,001,756.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ October 14, 2024 0.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on September 20, 2024 418,318.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    € As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    £ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    Ajit Prasad            
     Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/1291

    MIL OSI Economics –

  • MIL-OSI Economics: Media release: Opposition’s pledge to include gas in Capacity Investment Scheme welcomed – Australian Energy Producers

    Source: Australian Petroleum Production & Exploration Association

    Headline: Media release: Opposition’s pledge to include gas in Capacity Investment Scheme welcomed – Australian Energy Producers

    Opposition’s pledge to include gas in Capacity Investment Scheme welcomed 

    Australian Energy Producers welcomes the Federal Opposition’s plan to include gas in the Capacity Investment Scheme (CIS) to help secure urgently needed investment in gas power generation capacity. 

    Australian Energy Producers Chief Executive Samantha McCulloch said the announcement sent a strong signal about the critical, long-term role of gas in Australia’s energy mix and would redress a policy failure of omitting gas from the scheme.  

    “The energy market operator recently highlighted that the National Electricity Market will need an additional 13 GW of new gas power generation to be built by 2050 as part of the least-cost transition, underscoring the increasingly important role of gas for Australia’s energy security,” she said. 

    “Australia urgently needs investment in new gas supply and infrastructure, and the CIS is an important lever to support this necessary investment.” 

    “Amid an increasingly difficult regulatory and investment environment in Australia, the Coalition has recognised the critical role of gas and the need for more supply to ensure reliable and affordable energy for households and businesses.” 

    Today’s announcement complements Coalition commitments to address the regulatory barriers to new gas supply, unlock key gas basins, and to reinstate annual acreage releases.  

    “Australia needs energy policies that provide certainty around project approvals and regulatory stability to restore investor confidence,” she said. 

    “The deliberate exclusion of gas from the current CIS was a mistake that needs correcting to incentivise the significant investment needed to ensure Australians have reliable and affordable energy. 

    “This is not a measure that needs to wait until the next federal election – it is a conversation that state and federal energy ministers should be having today.” 

     

    Media Contact: Brad Thompson on 0401 839 227 

    MIL OSI Economics –

  • MIL-OSI Economics: Global partnerships to foster Singapore Project RESET against cardiovascular diseases, says GlobalData

    Source: GlobalData

    Global partnerships to foster Singapore Project RESET against cardiovascular diseases, says GlobalData

    Posted in Medical Devices

    Given the rising prevalence of cardiovascular diseases (CVDs) among Singapore’s aging population, the National University of Singapore (NUS) Medicine has taken proactive steps with initiatives such as MOMENTUM-CVD and Project RESET to develop preventive measures. International collaborations are expected to strengthen these efforts, considerably advancing cardiovascular research in the country, says GlobalData, a leading data and analytics company.

    Agilent Technologies Inc. has recently formed a strategic partnership with the NUS, through NUS Medicine, to establish a Center of Excellence in Cell Metabolism. This collaboration aims to advance research in cardiovascular and metabolic diseases over the next four years.

    Shreya Jain, Medical Devices Analyst at GlobalData, comments: “Global collaborations such as Duke-NUS partnership and Global Alliance for Chronic Diseases are significantly advancing Singapore’s initiatives for CVD research and prevention by providing access to international expertise, technology, and funding. Partnerships with global leaders such as Agilent Technologies and academic institutions are likely to further enhance the country’s capabilities in developing innovative solutions for CVDs.”

    Agilent’s integrated metabolic and cellular phenotyping platforms such as xCELLigence, Seahorse XF, and BioTek technologies are said to offer multimodal workflow solution, enabling cell studies at exceptional speed and scale. Such combinations will facilitate the discovery of new therapeutic targets and cardio-liver-metabolic biomarkers to prevent CVDs.

    Jain concludes: “By developing innovative, preventative healthcare strategies and enhancing local expertise in cardiovascular research, Singapore aims to reduce healthcare costs associated with CVDs. Furthermore, international collaborations will elevate Singapore’s status as a hub for biomedical research, attracting investment, talent, and boosting the local economy over time.”

    MIL OSI Economics –