Daily updates on climate change and the global economy.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Daily updates on climate change and the global economy.
Stay current with what’s happening around the world with a quick scan of top news.

Iran's Rial collapsing
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“Iran’s currency hit a record low on Sunday of 100,000 rials to the dollar amid a deepening economic crisis and the imminent return of full US sanctions.

“The unofficial rate stood at 102,000 rials by midday, according to Bonbast, one of the most reliable sites for tracking the Iranian currency.

“The rate was confirmed by a trader who spoke on condition of anonymity to AFP.

“The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March.”


“Of the 20 funds paying pension to retirees in Iran, 18 are bankrupt, a member of Majlis Social Commission said. Rasoul Khezri added that all the pension providers in Iran are in a state of bankruptcy, with the exception of Social Security Fund and, to some extent, the Central Bank Pension Fund, ICCIMA’s news portal reported.”


“Prices and inflation are rising so fast [in Venezuela] that the highest denomination bank notes emitted in 2016 are already practically worthless. The biggest of those, 100,000 bolivars, would have bought five kilograms of rice in 2017, now it’s barely enough for a single cigarette. “If inflation continues at 100 percent a month,” the new 500 bolivar note, which will be the largest following the currency redenomination on August 20, “will be obsolete by December,” said economist Leonardo Vera.”


“Nigeria failed the test conducted to determine its ability to sustain ongoing borrowings and their repayments in the next five and 10 years, an affirmation of the growing fears over increasing level of borrowings and huge costs incurred in servicing them.”


“With the Bank of Japan ending a two-day meeting on Tuesday, the Federal Reserve concluding its meeting on Wednesday and the Bank of England expected to raise interest rates on Thursday, investors are preparing for a busy week that could set the near-term course for currencies.”


“Emerging market governments and companies have borrowed heavily in dollars, and their debt repayment burdens are rising.”


“After more than a year of aggressively cracking down on dangerously high debt levels, China’s cabinet on Monday said it would be more “active” in stimulating the economy, citing “external uncertainties”. But the IMF said “a reversion to credit-driven stimulus would further increase vulnerabilities that could eventually lead to an abrupt adjustment”.”


The manufacturing and construction boom that powered China’s economy, fuelling demand for heavy machinery, is winding down, and Shenyang Machine has posted losses every year since 2013… The workers are oblivious to the company’s $78m loan from Bank of Shengjing, the largest regional lender in Liaoning province, whose capital city is Shenyang. But the nexus between lossmaking companies and regional banks has emerged as a key risk to China’s economy, where an explosion of debt since the global financial crisis has sparked warnings from the IMF and other watchdogs.”


“Equity and bond markets have welcomed Imran Khan’s victory in Pakistan’s disputed election, but the former cricket hero faces a tough slog to avert a currency crisis and implement long-term reforms needed to end decades of boom-and-bust cycles.”


“The collapse of the seventh-smallest of South Africa’s 21 banks has left a trail of destruction, with customers queuing up outside branches before dawn in the hope of accessing their funds. Like Mulalo Ramano, a 72-year-old widow who’s suffered anxiety attacks fretting about the R20 000 life savings she deposited at the bank.”


“It’s confession time among the Detroit automakers: GM, Fiat Chrysler, and Ford all got ugly, in unison, in one day, something we haven’t seen since the Financial Crisis.”


“The housing market is hot. Prices are up, inventory is down, and the market is active. Many people are starting to become cautious of a “real estate bubble.” The past has revealed many red flags which would indicate a real estate market may very well crash.”


“Credit-rating companies such as Standard & Poor’s and Moody’s have recently warned that this surge in corporate borrowing and lending has led to a noticeable decline in the quality of the loans. The borrowers have lower credit ratings. The loans contain fewer of the standard conditions that are meant to protect lenders. And the rating companies calculate that lenders should expect to recover less of their money if the borrowers default or go into bankruptcy.

“For the most part, however, these warnings have gone unheeded…”


Read the previous ‘Economy’ thread here.

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