DHAKA, Bangladesh: Business leaders and officials from eight developing nations meeting in Bangladesh on Tuesday said more cooperation was needed among them to overcome dwindling foreign currency reserves, a growing energy crisis and supply chain disruptions.
Representatives from Egypt, Iran, Malaysia, Nigeria, Pakistan, Turkey and Bangladesh under the banner of D-8, or developing eight countries, were discussing alternative trade financing such as cross currency swap, barter and blockchain to address their foreign currency reserves vulnerabilities, according to organizers.
Bangladesh’s Foreign Minister A.K. Abdul Momen said the group, with a $5 trillion economy among its members, was working to implement a free trade agreement while also increasing the volume of trade.
Organizers said the participants were exploring ways to boost energy security with members such as Iran and Nigeria among the world’s top oil producers.
Bangladesh, a nation of 160 million people and the world’s 41st largest economy, has suspended operations in diesel-run power plants to ease pressure on the cost of imports. The country’s central bank has also taken measures to reduce the imports of luxury goods amid shortages of dollars in banks.
“Due to ongoing impact of the COVID-19 pandemic and key global economic developments, every member country is experiencing foreign reserve and currency vulnerabilities, supply chain disruptions, inflation, energy and food security risks, and therefore should take precautionary measures to prepare for business beyond the usual,” said Sheikh Fazle Fahim, president of the D-8 Chamber of Commerce and Industry.
Momen said the group should tap into its young workforce. “We have over 200 million young people, youth. And in addition, we have a lot of women entrepreneurs that are coming up.”
D-8 was established in Istanbul in 1997 to engage in economic cooperation and improve member states’ position in the global economy.
Developing nations seek to overcome energy, currency crises
https://arab.news/8mbmg
Developing nations seek to overcome energy, currency crises
- Organizers said the participants were exploring ways to boost energy security
- Bangladesh has suspended operations in diesel-run power plants to ease pressure on the cost of imports
Saudi imports, exports increase despite regional tensions
RIYADH: Saudi Arabia’s imports and exports increased 5 percent in the first quarter of 2024 despite the tension in the region, according to a senior official.
In November 2023, the Saudi Ports Authority, known as Mawani, announced a 5.31 percent increase in container handling across all seaports in October. A total of 741,905 twenty-foot equivalent units were processed, compared to 704,486 a year before.
In an interview with Al-Ekhbariya TV channel on the sidelines of the Logistic Integration Forum 2024, held on April 29 in the Eastern Province, Minister of Transport and Logistic Services Saleh Al-Jasser noted that this growth stemmed from collaborative efforts between the public and private sectors.
IsDB Group annual meetings conclude with 85 agreements worth over $8bn
RIYADH: As many as 85 agreements worth over $8 billion were signed across diverse sectors during the recently concluded annual meetings of the Islamic Development Bank Group.
This stands in contrast to the last year’s meetings, which recorded only 77 financing agreements, totaling $5.4 billion.
Speaking at the concluding press briefing, IsDB Chairman Mohammed bin Sulaiman Al-Jasser disclosed the signing of financing agreements between the group's institutions, 38 member countries, and 22 international financial institutions, covering diverse projects.
He lauded the continuous backing of the group by Saudi leadership, citing it as a testament to the Kingdom’s commitment to global cooperation and advancement.
Highlighting the significance of this year’s gatherings, the chairman mentioned that they included meetings of the IsDB Group’s councils and over 27 consequential side events.
These sessions brought together distinguished intellectuals, experts, and researchers from various developmental domains, with a total of more than 3,750 participants.
Notably, representatives from approximately 55 international and regional partner organizations, including 23 institutional heads, were present.
Detailing the Private Sector Forum’s activities, Al-Jasser noted the participation of over 1,500 delegates from more than 60 nations. The forum, comprising 17 events, facilitated the signing of over 60 agreements amounting to approximately $6.5 billion.
Over the past 50 years, the IsDB has played a significant role in progress by funding developmental projects exceeding a total value of $182 billion, according to the chairman.
These projects have encompassed diverse vital areas, ranging from basic infrastructure and agriculture to various strategic sectors such as health, education and energy, as well as trade, and Islamic finance.
He emphasized that the discussions and exchanges during the meetings provided valuable insights and success stories crucial for fostering sustainable social and economic development. He affirmed that the outcomes would transform the IsDB’s future initiatives and strategic partnerships.
The issuance of the “Golden Jubilee Declaration” by the IsDB Board of Governors, acknowledging the bank’s pivotal role and achievements, was also highlighted by Al-Jasser.
The declaration outlined key future priorities, including enhancing governance, expanding concessional financing, and advancing Islamic finance and cooperation in Southern countries.
In conclusion, Al-Jasser reiterated the theme of the annual meetings – “Cherishing our Past, charting our Future: Originality, Solidarity and Prosperity” – underscoring its significance as a guiding principle for the IsDB’s trajectory.
He emphasized the organization’s commitment to drawing inspiration from past achievements, learning from historical lessons, and leveraging current challenges and opportunities to forge a brighter future.
Last year, the IsDB Group announced several projects with 24 member countries aimed at addressing pressing challenges hindering growth in the Global South, with a focus on health, agriculture, and food security, as well as initiatives targeting small and medium enterprises, education, and humanitarian assistance, among others.
Saudi’s Ma’aden completes 10% acquisition of Brazil’s Vale Base Metals
RIYADH: Saudi Arabian Mining Co., also known as Ma’aden, has announced that it has completed the 10 percent acquisition of Brazil’s Vale Base Metals.
Ma’aden, which is majority-owned by the Public Investment Fund, said that its joint venture, Manara Minerals Investment Co., finalized the purchase, according to a Tadawul statement.
This move will boost the growth of the Kingdom’s mining sector in line with the objectives of the Vision 2030 initiative to diversify the Saudi economy away from oil.
It follows Ma’aden’s announcement in July 2023 that its joint venture had signed a binding agreement to acquire the stake for $26 billion as part of a strategy to invest in global mining assets.
“This investment is an important milestone for Manara Minerals. Through our investment in VBM, we are increasing the supply of strategic minerals and enabling Saudi Arabia to play a growing role in the global energy transition supply chains,” Robert Wilt, executive director of Manara Minerals and CEO of Ma’aden, said at the time in a statement.
“Our proactive approach is a step further towards Saudi Vision 2030. It will support local industrial development, create jobs across the Kingdom, and strengthen the position of the mining sector as the third pillar of the economy,” Wilt added at the time.
Egypt’s net foreign assets deficit shrinks $17.8bn in March
CAIRO: Egypt’s net foreign assets deficit shrank $17.8 billion in March, its second month of decline, central bank data showed, after remittances, foreign portfolio investment and a $5 billion payment from the UAE poured into the country, according to Reuters.
Egypt received a second $5 billion payment from the UAE in early March for a land development on the Mediterranean coast after an initial payment in February.
On March 6, it devalued its currency and announced an $8 billion agreement with the International Monetary Fund, triggering a flood of portfolio investments and remittances from workers abroad.
The March NFA deficit shrank to 200 billion Egyptian pounds ($4.18 billion) from 679 billion pounds in February.
The March NFA figures does not reflect an $820 million first instalment in early April under the expanded IMF financial support program.
Commercial banks’ foreign assets jumped by $7.4 billion in March while their liabilities slid by $3 billion, according to Reuters calculations based on central bank data and taking account of the March 6 devaluation.
Egypt has allowed its currency to weaken to 47.8 pounds to the dollar since it signed the IMF agreement after having left it fixed at 30.85 to the dollar for a year.
Central bank foreign assets rose by $3.5 billion while its foreign liabilities decreased by $3.9 billion.
NFAs represent both central bank and commercial bank assets held by non-residents, minus their liabilities.
The $17.4 billion reduction in the deficit followed a $7.04 billion reduction in February.
Before that, the central bank had been drawing on the NFAs over the past two and a half years to help support the country’s currency. In September 2021, NFAs stood at a positive $3.9 billion.
Oil Updates – prices fall for a 3rd day as Middle East ceasefire hopes rise
NEW YORK/SINGAPORE: Oil prices fell for a third day on Wednesday amid increasing hopes of a ceasefire agreement in the Middle East and rising crude inventories and production in the US, the world’s biggest oil consumer
Brent crude futures for July fell 70 cents, or 0.8 percent, to $85.63 a barrel by 7:56 a.m. Saudi time. US West Texas Intermediate crude for June declined 75 cents, or 0.9 percent, to $81.18 per barrel.
Expectations that a ceasefire agreement between Israel and Hamas could be in sight, following a renewed push led by Egypt to revive stalled negotiations between the two, pushed oil prices lower.
“The potential for a ceasefire agreement between Israel and Hamas has eased concerns of an escalation of the conflict and any possible disruptions to supply,” ANZ analysts said in a note on Wednesday.
However, Israeli Prime Minister Benjamin Netanyahu vowed on Tuesday to go ahead with a long-promised assault on the southern Gaza city of Rafah, whatever the response by Hamas to the latest proposals for a halt to the fighting and a return of Israeli hostages.
Also pressuring prices were swelling US crude oil inventories and rising crude supply.
US production rose to 13.15 million barrels per day in February from 12.58 million bpd in January, its biggest monthly increase in about 3-1/2 years, the Energy Information Administration said on Tuesday.
“Continued signs of inflation also raised concerns about demand for crude oil. This comes ahead of the US driving season, where demand for gasoline rises strongly,” analysts at ANZ said.
Keeping oil from slipping further, output by the Organization of the Petroleum Exporting Countries was seen falling by 100,000 bpd in April to 26.49 million bpd, a Reuters survey found on Tuesday.
The survey reflected lower exports from Iran, Iraq and Nigeria against a backdrop of ongoing voluntary supply cuts by some members agreed with the wider OPEC+ alliance.
