MoU Archives · Policy Print https://policyprint.com/category/mou/ News Around the Globe Sun, 18 Jun 2023 22:46:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://policyprint.com/wp-content/uploads/2022/11/cropped-policy-print-favico-32x32.png MoU Archives · Policy Print https://policyprint.com/category/mou/ 32 32 Chinese Policy Bank Increases Support for Transport System Construction https://policyprint.com/chinese-policy-bank-increases-support-for-transport-system-construction/ Sat, 01 Jul 2023 22:44:39 +0000 https://policyprint.com/?p=3255 China Development Bank, one of the country’s policy banks, has stepped up financial support for the construction of…

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China Development Bank, one of the country’s policy banks, has stepped up financial support for the construction of a modern transportation system.

From January to May 2023, a total of 268.7 billion yuan (about 37.78 billion U.S. dollars) in loans had been extended by the bank to build railways, roads, airports and other transport facilities.

The bank also increased financial support for the construction of charging piles and related power grid networks, among others.

The bank said it will continue to support the development of a modern transportation system, provide higher quality financial services, and fulfill its social responsibilities. 

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Türkiye’s New Economy Team Raises Hope for Monetary Policy Change https://policyprint.com/turkiyes-new-economy-team-raises-hope-for-monetary-policy-change/ Thu, 29 Jun 2023 22:30:20 +0000 https://policyprint.com/?p=3241 As re-elected Turkish President Recep Tayyip Erdogan forms his new economic team this month, all eyes are set…

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As re-elected Turkish President Recep Tayyip Erdogan forms his new economic team this month, all eyes are set on Türkiye’s interest rates, a main indicator of whether the country will pivot back to its conventional economic policies.

The appointment of former U.S.-based bank executive Hafize Gaye Erkan as the governor of the Turkish Central Bank, and Mehmet Simsek, an internationally-known former banker as the country’s treasury and finance minister raised hope that the country might move away from its unorthodox strategy that features low-interest rates when inflation is running high.

“The appointment of Erkan … can be taken as a sign that the extremely low borrowing costs, which cause inflation to rise, will normalize in terms of monetary policy,” Enver Erkan, chief economist at Istanbul’s Dinamik Investment Securities, told Xinhua.

Meanwhile, Simsek, who was at the helm of the Turkish economy until 2018, said at a handover ceremony with his predecessor Nureddin Nebati on June 4 that “Türkiye has no choice but to return to a rational basis … We will prioritize macro-financial stability.”

All eyes are now on the next meeting of the Monetary Policy Committee (MPC) of the Central Bank set for June 22, when the new governor is expected to hike interest rates.

“The message received and the expectations formed so far point to a strong signal of policy transition, and the June 22 MPC meeting is in a critical position for its implementation,” the analyst stressed.

In Erkan’s view, the policy rate, currently at 8.5 percent, could be gradually raised to 30 percent.

Following the presidential election last month, the embattled Turkish lira reached a succession of record lows against the U.S. dollar, falling to 23.61 against the greenback on Monday, a new all-time low.

Since the start of this year, the lira has depreciated by over 20 percent.

In a series of tweets last week, Simsek asked the public to be patient, adding that his “immediate priority is to strengthen our team and design a credible program.”

Economists think that while Türkiye may be returning to orthodox economic policies, there is also a need for reforms to strengthen this transition.

A report published on June 8 by the Ankara-based Economy Policy Research Foundation of Türkiye, called on the new economy management team to adopt transparency regarding inflation figures, whose reliability has been questioned by some economists.

The report also urged the new economy team to announce an “action plan” to tackle the most pressing issues such as the widening current account deficit, high inflation, and the record-low foreign currency reserves of the Central Bank.

Some experts believe however that the new economy team doesn’t have a magic wand to secure immediate economic turnaround, and that Turks should prepare to swallow the bitter pill in the form of new taxes and belt-tightening measures.

“The drop in inflation data is only an illusion,” Mahfi Egilmez, an economist and former advisor to the treasury, said on his blog on June 9, pointing out that prices are continuing to increase for most goods.

“To reduce inflation, it is necessary to limit consumption by raising interest rates and endure a decline in growth and a rise in unemployment,” he warned. 

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Pakistani state bank keeps policy rate unchanged at 21 pct https://policyprint.com/pakistani-state-bank-keeps-policy-rate-unchanged-at-21-pct/ Thu, 29 Jun 2023 10:26:00 +0000 https://policyprint.com/?p=3238 The Monetary Policy Committee (MPC) of the State Bank of Pakistan has decided to keep the policy rate…

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The Monetary Policy Committee (MPC) of the State Bank of Pakistan has decided to keep the policy rate unchanged at 21 percent upon the expectation that the surging inflation will fall from June onwards, the central bank said in a statement.

“The MPC noted that higher inflation outturns for April and May were broadly as anticipated. The Committee also noted sequential ease in inflation expectations of both consumers and businesses from their recent peaks,” the statement said on Monday.

Earlier in April, the bank raised the policy rate by 100 basis points to the record high of 21 percent in order to curb the surging inflation.

The meeting also said that the current monetary policy stance, with positive real interest rates on a forward-looking basis, is appropriate to anchor inflation expectations and to bring down inflation towards the medium-term target, barring any unexpected domestic and external shocks.

However, the MPC emphasized that this outlook is also contingent on effectively addressing the prevailing domestic uncertainty and external vulnerabilities.

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China Steps up Counter-Cyclical Adjustment With Policy Rate Cuts https://policyprint.com/china-steps-up-counter-cyclical-adjustment-with-policy-rate-cuts/ Wed, 28 Jun 2023 22:24:41 +0000 https://policyprint.com/?p=3235 With two policy rate cuts announced on a single day, Chinese monetary authorities are making greater efforts to…

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With two policy rate cuts announced on a single day, Chinese monetary authorities are making greater efforts to strengthen counter-cyclical adjustment and shore up market expectations amid post-COVID recovery, analysts said.

The People’s Bank of China (PBOC), the country’s central bank, lowered the seven-day reverse repo rate for the first time since last August from 2 percent to 1.9 percent on Tuesday when injecting funds into the financial system through open market operations.

Later the same day, the PBOC also announced a cut on the interest rates of its standing lending facility, with the overnight rate down by 10 basis points to 2.75 percent.

Dong Ximiao, chief researcher at Merchants Union Consumer Finance Company Limited, said the reverse repo rate cut has reflected market supply and demand for funds while signaling further counter-cyclical adjustment and efforts to stabilize the market.

“As an important variable of the macroeconomy, the central bank’s rate cut on open market operations would facilitate market confidence,” said Wang Qing, an analyst with Golden Credit Rating, noting that the move would further propel China’s economic recovery in the second half of 2023.

The cuts came ahead of the PBOC’s release of the medium-term lending facility (MLF) rate and loan prime rate (LPR) decisions, which are set for Thursday and next week, respectively.

In August 2022, when the PBOC last cut the reverse repo rate by 10 basis points, the MLF rate was brought down the same day, while the LPR, a market-based benchmark lending rate, was lowered a week later.

In a circular issued late Tuesday by four state organs, including the National Development and Reform Commission, the Chinese government said it will work to lower financing costs for business entities and increase loans to small and micro firms.

China’s mild inflation has also left room for policy rate adjustments, according to analysts. In the first five months of 2023, the country’s consumer price index (CPI), a major gauge of inflation, edged up 0.8 percent year on year.

The 10-basis-point reverse repo rate cut is a quite moderate move, according to Dong, who considered it conducive to striking a balance between multiple policy targets such as maintaining price and financial stabilities, supporting the real economy, and keeping the RMB exchange rate generally stable at an adaptive, balanced level.

Prior to this week’s rate cuts, China’s six state-owned commercial banks had moved to cut deposit rates by around 10 to 15 basis points, which will help replenish capital and boost their abilities to support the real economy.

PBOC Governor Yi Gang, during his inspection in Shanghai earlier this month, has pledged that the central bank will continue to precisely and effectively implement a prudent monetary policy while strengthening counter-cyclical adjustment, supporting the real economy, promoting employment and maintaining currency and financial stability.

The central bank will also better utilize monetary policy tools, maintain reasonably ample liquidity and keep the amount of currency and credit at an appropriate level and a steady pace, the governor said.  

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Japan’s Central Bank Maintains Ultralow Rates at Policy Meeting https://policyprint.com/japans-central-bank-maintains-ultralow-rates-at-policy-meeting/ Tue, 27 Jun 2023 22:20:27 +0000 https://policyprint.com/?p=3229 The Bank of Japan (BOJ) decided on Friday to maintain its ultralow interest rate policy as it concluded…

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The Bank of Japan (BOJ) decided on Friday to maintain its ultralow interest rate policy as it concluded its two-day policy-setting meeting, holding the view that it requires time to achieve its 2 percent inflation target.

The central bank will keep its short-term benchmark interest rates at minus 0.1 percent, while continuing to guide 10-year Japanese government bond yields to around zero percent within the range of plus and minus 0.5 percentage points.

The BOJ added that it will continue to purchase 10-year bonds at a fixed rate of 0.5 percent every business day in principle, keeping up its fight to defend the yield cap to keep borrowing costs extremely low and support the economy.

The BOJ said in a statement it will “patiently” continue with monetary easing in order to achieve its target of 2 percent inflation accompanied by wage increases “in a sustainable and stable manner.”

BOJ Governor Kazuo Ueda has stressed the need to stick to monetary easing based on the central bank’s projections that inflation will slow down later this year and that its 2 percent target will not likely be achieved stably.

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Finland’s New Government Unveils Policy Program https://policyprint.com/finlands-new-government-unveils-policy-program/ Tue, 27 Jun 2023 10:18:00 +0000 https://policyprint.com/?p=3226 The new government of Finland unveiled its policy program and division of ministerial posts on Friday, highlighting a…

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The new government of Finland unveiled its policy program and division of ministerial posts on Friday, highlighting a commitment to safeguarding the welfare society.

The new government will safeguard the welfare society, ensure adequate services for all, and promote the balanced development of the national economy, said the government’s press release on Friday.

It will make adjustments to taxation, lowering personal income tax and increasing value-added tax on items such as pharmaceuticals, sports services, film screenings, etc, it said.

Regarding immigration, the government plans to significantly lower the refugee quota and raise the threshold for permanent residence permits, including requirements related to continuous residency and language proficiency.

The coalition government consists of the conservative National Coalition Party, the right-wing Finns Party, the Finnish Christian Democrats, and the Swedish People’s Party.

According to the cabinet position allocation plan, the new government will consist of a Prime Minister and 18 ministers, the same as the current one. 

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Türkiye’s New FM Says To Continue Established Foreign Policy https://policyprint.com/turkiyes-new-fm-says-to-continue-established-foreign-policy/ Mon, 26 Jun 2023 10:11:00 +0000 https://policyprint.com/?p=3220 Türkiye’s new Foreign Minister Hakan Fidan promised to continue the vision of “national foreign policy” as he took…

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Türkiye’s new Foreign Minister Hakan Fidan promised to continue the vision of “national foreign policy” as he took office on Monday.

Fidan made the remarks at a handover ceremony with his predecessor Mevlut Cavusoglu, adding the vision is “based on the independence of our state from all spheres of influence and the sovereignty of our nation’s will,” Fidan said after assuming office.

“I thank our president for being appointed as foreign minister, which requires similar responsibilities after my duty at the national intelligence organization that lasted for 13 years and necessitated heavy responsibility,” he said.

Fidan, 55, had served as the head of the National Intelligence Organization since 2010. He is one of Turkish President Recep Tayyip Erdogan’s closest aides.

Fidan also assumed duties such as the presidency of the Turkish Cooperation and Coordination Agency and deputy undersecretary of the prime ministry during Erdogan’s term as prime minister.

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Brazil Rejects U.S. Criticism of Its Foreign Policy https://policyprint.com/brazil-rejects-u-s-criticism-of-its-foreign-policy/ Sat, 24 Jun 2023 21:58:33 +0000 https://policyprint.com/?p=3211 Brazilian Foreign Minister Mauro Vieira on Monday dismissed U.S. criticism of Brazilian foreign policy after U.S. National Security…

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Brazilian Foreign Minister Mauro Vieira on Monday dismissed U.S. criticism of Brazilian foreign policy after U.S. National Security Council spokesman John Kirby accused Brazil of “parroting Russian and Chinese propaganda” about the Ukraine crisis earlier in the day.

“I don’t agree at all. Not at all. I don’t know how or why he came to that conclusion,” Vieira said in response to a question from the press at the presidential residence Alvorada Palace, where Brazilian President Luiz Inacio Lula da Silva received Russian Foreign Minister Sergey Lavrov on Monday.

Speaking to journalists on Saturday, Lula said that the West is encouraging war by giving arms to Ukraine. “The United States needs to stop encouraging war and start talking about peace,” he said. 

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Interview: U.S. By No Means Democratic Given Its Hegemonic Foreign Policy, Says Expert https://policyprint.com/interview-u-s-by-no-means-democratic-given-its-hegemonic-foreign-policy-says-expert/ Fri, 23 Jun 2023 21:53:39 +0000 https://policyprint.com/?p=3205 Despite its attempt to masquerade as a “beacon of democracy” by convening the second so-called “Summit for Democracy,”…

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Despite its attempt to masquerade as a “beacon of democracy” by convening the second so-called “Summit for Democracy,” the United States is by no means democratic given its hegemony-based foreign policy, an expert has said.

“The United States wants to portray itself as a beacon of democracy … but the gap is wide when it comes to implementing democracy in its relation” with other countries, said Mokhtar Ghobashy, deputy chairman of the Cairo-based Arab Center for Political and Strategic Studies, in an interview with Xinhua.

The United States is prone to exercising “a form of dominance and blackmail against many countries” to serve its selfish interests, Ghobashy said, citing Washington’s responsibility for disorder and conflict in some parts of the world, including the ongoing Ukraine crisis.

Noting the narrative of democracy is used by the United States to pressure countries in other part of the world, the political science researcher said that the United States uses “the pretexts of democracy, human rights and the rights of minorities as means to serve its political interests.”

The United States called itself a democracy, while it exercises “the severest type of authoritarianism and totalitarianism” with many countries, the expert said.

“When the United States deals with the foreign world, it doesn’t adopt democracy, nor does it observe the rules of international legitimacy or international law,” he added.  

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Japan, Philippines Agree to Sharply Boost Defense Ties https://policyprint.com/japan-philippines-agree-to-sharply-boost-defense-ties/ Sat, 17 Jun 2023 19:24:00 +0000 https://policyprint.com/?p=3174 The leaders of Japan and the Philippines agreed Thursday to sharply boost their defense ties, allowing Japanese troops…

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The leaders of Japan and the Philippines agreed Thursday to sharply boost their defense ties, allowing Japanese troops greater access to Philippine territory, as tensions rise in Asia amid China’s growing influence.

Philippine President Ferdinand Marcos Jr. is visiting Japan shortly after he and U.S. Secretary of Defense Lloyd Austin reached an agreement on allowing the United States more access to Philippine military bases to keep China’s territorial ambitions in check.

The defense arrangement signed by Marcos and Japanese Prime Minister Fumio Kishida will allow Japanese troops to join training exercises to respond to natural disasters and humanitarian needs in the Philippines. The agreement is seen as a step toward broader military cooperation and could lead to similar agreements between Japan and other Southeast Asian nations.

Kishida said the two countries will continue talks to further strengthen and streamline their militaries’ joint exercises and other operations, while seeking to expand the transfer of Japanese defense equipment and technology to the Philippines and strengthen cooperation trilaterally with the United States.

“After our meeting, I can confidently say that our strategic partnership is stronger than ever as we navigate together the rough waters buffeting our region,” Marcos said at a joint news conference with Kishida. “The future of our relationship remains full of promise as we continue to deepen and expand our engagements across a wide range of mutually beneficial cooperation.”

The new defense agreement allows Japan to deploy its forces for humanitarian missions and disaster response in the Philippines, an arrangement Japan hopes to eventually upgrade to include joint military training, cooperation and mutual visits, Japanese officials said.

The two leaders “resolved” to increase the defense capabilities of their own countries and strengthen overall security cooperation with reciprocal port calls and aircraft visits and the transfer of more defense equipment and technology, according to a joint statement released later Thursday. It said Japan will transfer air surveillance radar systems to the Philippines and provide related personnel training.

They “expressed serious concerns about the situation in the East and China Seas and strongly opposed the actions including force or coercion that may increase tensions,” the statement said.

Kishida and Marcos also agreed to strengthen cyber and economic security. They also confirmed Japan’s continuing assistance to the Philippine coast guard in reinforcing its capabilities, including the improvement of port facilities at Subic Bay, a former U.S. naval base.

Last year, the two island nations held their first four-way security talks among their defense and foreign ministers and agreed to strengthen their defense ties.

Kishida’s government in December adopted key security and defense upgrades, including a counterstrike capability that breaks from Japan’s post-World War II principle of self-defense only, while also doubling defense spending in five years.

Under the new strategy, Japan will also use development assistance to support poorer nations as they strengthen their maritime safety and other security capabilities. It’s meant to counter China’s growing regional influence.

“President Marcos’s visit here gives us impetus for Japan and the Philippines to further elevate our cooperation in recent years to even higher levels as we contribute to the peace and stability of the region and the international community,” Kishida said at the news conference.

Kishida announced 600 billion yen ($4.6 billion) in economic assistance from the public and private sector for the Philippines through March 2024, primarily to improve infrastructure, such as construction of a commuter railway, and disaster response. The two sides also signed an agreement to work together in information and communication technology and to cooperate in energy security and industrial development.

“When you think about the stability in the region and sea lanes and deterrence of China’s maritime assertiveness, deepening cooperation with the Philippines is crucial for the security of Japan and the United States,” said Heigo Sato, a Takushoku University professor and expert on defense and security. “Having access to bases in the Philippines would expand strategic options for the Japan-U.S. alliance” in case of an emergency involving Taiwan and China, he said.

Japan has been expanding its military cooperation in recent years beyond its main ally, the United States, forging close ties with Australia and other countries in the Asia-Pacific region and Europe.

Marcos met with Emperor Naruhito and Empress Masako ahead of his talks with Kishida and invited the imperial couple to visit the Philippines. He said he plans to join talks with trade and business officials from the two sides before returning home on Sunday.

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