China Paves the Way for Debt Relief

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News Date: April 26, 2024

China's central bank is pushing for fair burden-sharing among creditors in debt restructurings for emerging market countries, indicating a proactive stance on global debt issues.
China's recent move to write off undisclosed amounts of Zimbabwe's interest-free loans aligns with its commitment to assist African nations burdened by external debt.
Since 2000, China has made debt relief a norm, providing crucial support to sub-Saharan African countries without imposing strict conditions.
This approach could influence other lenders and boost investor confidence, ultimately attracting further financial support for debtor nations.
Read also: World Bank President:China needs to participate in debt relief

Islamic finance embraces fintech with gold-backed debit card

Wahed opens London office, launches gold-backed debit card for Muslims.
Gold-backed debit cards and wealth management offers a form of banking that is free from interest, speculation, and inflationary currencies.
Source: finance.yahoo

HSBC introduces tokenized gold platform

HSBC is the First Bank in the World to Offer Tokenized Gold.
HSBC Holdings Plc, a major bullion bank, has introduced a platform that utilizes blockchain technology to tokenize ownership of gold stored in its London vault.
This platform generates digital tokens representing gold bars, making gold trading more accessible.
While initially targeting institutional investors, it plans to open up to retail investors where regulations allow.
HSBC's entry into the tokenized gold market is notable due to its significant role as a custodian of precious metals and a clearer on the London gold market.
The technology promises to streamline the process, allowing clients to easily track their gold ownership down to the serial number of each bar.
HSBC has been actively exploring blockchain technology and recently launched HSBC Orion, a tokenization platform for digital bonds, with successful applications in the market.

The Nilar Gold Currency, the key to African development

Fiat money damages African economies and lives.
A common African gold currency, a long-held vision that many Africans still hold, is a way to effectively achieve monetary and thus economic independence.
Why Nilar? The Nile is Africa's and the world's longest river.
Zimbabwe, an unstable and inflationary economy, has finally made the sound decision to introduce gold coins to solve the persistent problem of rampant inflation.
Also, a multipolar world is inevitable and may be approaching.
Africa should not remain underdeveloped and dominated in that world. The nilar is the key.
Author: Manuel Tacanho is founder of Afridom, a sound money based digital banking startup for Europe and Africa.
Source: mises.org

New Financial System

IMF member countries are receiving their shares of new SDRs, of about US$650 billion, the largest in the funds history! This is a shot in the arm for the world and will help bolster confidence and strengthen the resilience of the global economy.
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.
A SDR is not a loan & is cost-free for all IMF members. Unlike an extended fund facility, the government does not have to request any arrangement & there is no repayment involved. All member countries can use their allocated SDRs unconditionally.
IMF urges wealthy nations to direct $650 billion SDR share to vulnerable countries.
Zimbabwe to use more than half of IMF funds to prop up the currency.
Sources: twitter.com, www.today.ng

More BRICS and Bretton Woods 3

Expanding BRICS to create an alternative power bloc is enticing for many countries.
Talk of the BRICS nations creating a new reserve currency introduced the idea of 'Bretton Woods 3.0'.
The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.
Thus, the name 'Bretton Woods Agreement'.
Under the Bretton Woods System, gold was the basis for the U.S. dollar and other currencies were pegged to the U.S. dollar's value.
The Bretton Woods System effectively came to an end in the early 1970s when President Richard M. Nixon announced that the U.S. would no longer exchange gold for U.S. currency.
Sources: investopedia