Colombia Peso Rises to 1-Month High on Ecopetrol Bonds; Chile Peso Falls Jul 15, 2009
It should be clear by the end of the month if there is going to be a reorganization or if it will more of the same, which would mean more capital flight, Blanco said. The yield on the countrys inflation-linked peso bonds due in December 2033 rose two basis points to 14. (Bloomberg -- Latin America)
China doubles down in Africa Jul 14, 2009
Even before the current crisis, with optimistic pre-crash assumptions about exports, inward remittances, financial reform and reduced capital flight, the United Nations estimated that sub-Saharan Africa would need tens of billions of dollars per annum in external funding if it were to make any headway in its struggle to alleviate widespread poverty. Post-crisis, the African Development Bank projects that the continent's exports will drop a staggering 40% by 2010 compared to pre-crisis... (Asia Times Online)
Ghana@50 celebration was not a waste of national resources Jul 4, 2009
The benefits of the Ghana@50 would be fully realised when growth in long term employment arising from capital flight into the country, traceable to the event, begin to show green shoots. The positive knock-on effect on other economic activities in the country will all push up the National Income, and increase Ghanas ability to take care of the sick, the old, the insecure, the destitute, the unemployed, etc. (Ghana Web, Ghana)
Why Home Prices Won't Rise Again Jul 2, 2009
This capital flight creates another drag on housing valuations. So whatever the future holds deflation, inflation, or periods of one following the other housing will never return to its bubble-era valuations when measured by purchasing power adjusted for inflation. (The American Conservative)
One bet George Soros may lose Jun 26, 2009
By contrast, the lending institution appears to be shorting the "green shoots'' that optimists see sprouting around the globe. The World Bank on June 22 said recessions will be deeper than it estimated in March. It now expects the world economy to contract 2.9 per cent this year, compared with a previous forecast of a 1.7 per cent decline. Things may get worse than the numbers suggest. That's because the developing world, the one part that's still growing at the moment, is experiencing a capital... (Sydney Morning Herald -- Business)
Soros Goes Long as World Bank Shorts Recovery Jun 26, 2009
Thats because the developing world, the one part thats still growing at the moment, is experiencing a capital flight that will swell the ranks of the poor and the unemployed. The least-appreciated side effect of this crisis is how living standards of poorer nations will be set back. (Bloomberg -- Columnists)
Chavez's Dollar Rationing Sparks 70% Drop in Fabricato Exports, CEO Says Jun 25, 2009
Chavez first imposed currency restrictions in 2003 to stem capital flight amid a nationwide oil strike. Venezuelan Finance Minister said April 24 that the government has made imports of food and medicine its priority in allotting dollars this year. (Bloomberg -- Latin America)
Argentines Boost Dollar Deposits Ahead of Election on Concern Peso to Fall Jun 22, 2009
Theres a lot of capital flight by the private sector and very high inflation, so theres a need to depreciate to maintain competitiveness. . (Bloomberg -- Latin America)
National Assembly Passes 146 Laws In 120 Months Jun 21, 2009
"This law will create more jobs for Nigerians in the sector. It will also mean that Nigerian businesses are more involved in the industry, thereby reducing capital flight in the sector. We have passed laws to bring sanity into the financial sector, which was bedeviled by instances of failed banks before the advent of the democratic experiment in 1999. "The National Assembly has passed many laws concerning the welfare of Nigerians. Principal among these is the Minimum Wage Amendment bill, which... (Guardian News, Nigeria)
Govt okays N25b for power projects Jun 4, 2009
He said: "Before now, any (NNPC) senior management level personnel transiting to general management level must go through a course in that college. But the PTDF has been mandated to upgrade that college not to serve NNPC alone but the entire oil and gas industry so that it will become what Nigerian Institute of Policy and Strategic Studies (NIPSS) is to the Civil Service; and National War College is to the military. "This is a college for manpower development, it will be upgraded in such a way... (Guardian News, Nigeria)
Foreigners Invade Retail Trading In Ghana Jun 4, 2009
Again, it is bringing about Capital Flight which is hitting the economy so hard and bad by the day. The Paper was also hinted that because the foreigners gain more from the retail trading, they are able to pay any goodwill of any increasing quantum of rent as compared to the indigenous. (Ghana Web, Ghana)
Nigeria: In Quest of Solutions to Niger Delta Crisis Jun 1, 2009
"Also implicated in this decay is the total breakdown of traditional, cultural norms and values, and irresponsible parenthood. The results have been those of social disruption, investment and capital flight, poverty and under development. The biggest challenge today is lack of integration in national consciousness with its concomitant excruciating impact in national planning and development. These put together describe a situation that requires immediate and sincere intervention," Eyiboh said.... (allAfrica.com)
Liberia: U.S. Dollar Flying Out - Taxes, Customs To Be Paid In LD May 30, 2009
Liberia is the only country within ECOWAS with a dual currency, a policy that has intensified capital flight ... This is "Capital Flight". (allAfrica.com)
Indian firms' foreign purchases: Gone shopping May 29, 2009
But this fear of capital flight slowly gave way to pride in India s national champions. In February 2004, they even allowed firms to finance their foreign acquisitions by borrowing abroad. (The Economist)
JTF reopens Delta waterways, Ijaw in UK petition Reps May 26, 2009
Bankole said: "No reason can justify the violence in the Niger Delta, where innocent people and national infrastructure have become victims of mindless criminality. We are all aware that the latest offensive arose from the premeditated criminality of militants who ambushed and abducted eleven soldiers on official escort duty. No responsible government will sit back and allow a few miscreants to hold the nation to ransom. Apart from these abductions and kidnappings of innocent citizens and... (Guardian News, Nigeria)
Africa: Should Aid Come to an End? [book review] May 22, 2009
After all, how about the immeasurable capital flight that has left and continues to leave Africa everyday. Under the current circumstances, Samir Amin's 'de-linking' hypothesis becomes more and more relevant and appealing. (allAfrica.com)
Nigeria: Tales From Korruptistan! May 20, 2009
Foreign companies trampled over themselves to invest in Korruptistan and as capital in-flow replaced capital flight, Awuf the nation's currency, appreciated to unprecedented levels. The foreign investments also resurrected closed factories and created new jobs. (allAfrica.com)
* Bourse surges past 6,500 points May 19, 2009
Capital flight had also slowed since the inheritance tax was cut late last year, Chen said. This story has been viewed 319 times. (Taipei Times, Taiwan -- World)
Africa: Helping Fragile States Survive Financial Crisis May 16, 2009
This may lead to inflation, he said, but that creates a negative cycle as "capital flight is more sensitive to inflation in fragile states than in others.". Post-conflict economies tend to be largely informal, which keeps tax income low and discourages foreign investment, Collier pointed out. (allAfrica.com)
Banks, ministries, others withhold N298b tax funds May 11, 2009
" Meanwhile, the minister will today declare open a four-day international conference on effective tax audit and investigation for improved compliance. The conference, slated to hold at the Sheraton Hotel and Towers in Abuja, is aimed at establishing international best practice approaches in tax audit and investigation. Other objectives of the conference include: To fight against fraud and corruption, illicit capital flight, tax evasion, tax competition and other harmful trends in tax policy and... (Guardian News, Nigeria)
No diesel for police vehicles grounded May 8, 2009
Ex-President Jerry John Rawlings while subtly acknowledging the bad economic situation, preferred to put the blame at the doorsteps of New Patriotic Party (NPP) businessmen whom he said are withdrawing their monies from the banks; his description for capital flight. With the unsavoury development, the already logistically-overstretched Ghana Police Service might have to consider an alternative arrangement through government to sustain its day/night patrols and other routine operations. (Ghana Web, Ghana)
Nepals Maoists lose support over Army chiefs sacking May 5, 2009
There is a lack of liquidity in the market owing to capital flight caused by plummeting confidence among local investors in the Maoist commitment to the right to property. And security remains a burning issue as dozens of armed groups continue to employ tactics of intimidation and murder to further their political aims. (Christian Science Monitor -- World)
$120 bn emergency fund for crisis May 4, 2009
The fund will offer emergency balance of payments support to any country hit with the type of capital flight that marked the Asian financial crisis of 1997/98. "The current global situation requires more concerted efforts to enhance confidence, maintain financial stability, and prevent further decline in economic growth," a joint statement by the region's finance ministers said. (India Times)
Barclays and Ghana plan tax haven May 3, 2009
Development charities fear that the establishment of a fully operating tax haven so close to oil- and mineral-rich countries such as Nigeria, Sierra Leone and Equatorial Guinea will encourage a rapid increase in tax and capital flight. There is also concern that cocaine barons, increasingly using west Africa as a trafficking route into Europe, could launder drug money through Ghana. (Ghana Web, Ghana)
Asian nations close to finalizing $120 billion emergency fund May 3, 2009
The fund will give emergency balance of payments support in case any of the countries experienced the kind of capital flight that marked the Asian financial crisis of 1997/98. "The three countries have reached an agreement today, recognizing the importance of our cooperation in the region," South Korean Finance Minister Yoon Jeung-hyun told reporters. (Yahoo News -- Top Stories)
Ten Foreign Policy Crises You Aren't Expecting (but Should Be) Apr 30, 2009
On the economic front, capital flight intensifies, investment falls, and the equity market collapses. The government reintroduces formal capital controls with a wave of partial nationalizations of at-risk companies. (Slate)
THE PRESIDENT'S INTERVIEW Apr 30, 2009
Now, what are you planning to do, to make sure that Nigerians who help these foreigners to evade Customs duties and abuse the expatriate quota are punished to ensure that there is a general audit of foreigners in Nigeria who are exploiting Nigerians and whose major contribution is capital flight ... The last dispensation deported them not because of the issue of lack of payment of duties for nine months but because of alleged capital flight. (Guardian News, Nigeria)
EDIT: Money In The Bank Apr 28, 2009
The US-based Global Financial Integrity (GFI) has placed India fifth on a list of 160 developing nations facing capital flight through illicit channels and its report says that annual illicit financial outflows from India during 2002-06 were between $22. 7 billion and $27. (India Times, India)
East Africa: Region Beats Global Financial Crisis Apr 20, 2009
The chief economist said the East African countries had been pummeled by capital flight that wiped off nearly 40% of the value of regional stock markets last year. Local currencies also weakened sharply against the dollar. (allAfrica.com)
Fiji tells Aussie banks to cut rates Apr 16, 2009
The moves to stop capital flight from Fiji included the suspension of some foreign exchange facilities and limits on foreign exchange transactions. 2009 Brought to you by. (Sydney Morning Herald -- Business)
Fiji devalues dollar in crackdown Apr 15, 2009
Fiji's central bank also announced the introduction of exchange controls to prevent capital flight. It said the devaluation would help boost Fijian tourism and exports - both badly hit by the political crisis and global economic downturn. (BBC News -- Asia-Pacific)
* THE LIBERTY TIMES EDITORIAL: ECFA: an economic masquerade Apr 13, 2009
Their plan to turn Taiwan into an Asia-Pacific operation center prompted many Taiwanese firms to move their factories to China, resulting in a severe brain drain and capital flight. This seriously undermined Taiwanese local industry and unemployment increased. (Taipei Times, Taiwan -- Sports)
Scuttled summit delays talks on crisis Apr 12, 2009
The Asian leaders were also scheduled to sign an investment pact with China and put the final touches on a regional currency pool to help member nations fend off speculative attacks and capital flight ... Leaders from ASEAN, China, Japan and South Korea had been set to back expansion of a currency swap network to $120 billion from $80 billion to deal with any shortages caused by the kind of capital flight that characterised the "Asian contagion" financial crisis a decade ago. (India Times)
China's foreign reserves hit $1.95 trillion at end of March Apr 11, 2009
Yuan Gangming, a researcher with the CASS, said the smaller increase in foreign exchange reserves might also be caused by capital flight ... He suggested relevant authorities should keep a close eye on flows of foreign reserves and prevent a similar capital flight that happened after the Asian financial crisis. (Xinhuanet, China)
Global crisis has silver lining for IMF Apr 5, 2009
"These sums more than match the total amount of capital flight and bank loan redemptions from emerging markets since 2007 of over 700 billion dollars and will go a long way to supporting financial stability in the developing and emerging market world," Randolph said. But the IMF's enhanced role drew fire from critics who say no new money should go to the IMF until it changes its policies. (India Times)
Nigeria: Forex Scam - EFCC Arrests Bank's Top Managers Apr 2, 2009
The discovery of the foreign exchange syndicate in banks has pointed to the source of capital flight from the country. The Nigerian economy has been facing financial haemorrhage as private Nigerians and corporate bodies aided by banks move funds massively out of the country, after converting from naira to dollar. (allAfrica.com)
Singapore May Devalue Currency, Allow 4% Decline by June, Survey Shows Mar 30, 2009
An easing bias will trigger capital flight, importers will suffer and construction costs will go up. . (Bloomberg -- Asia)
* The hard choices world leaders face at next weeks G20 summit Mar 27, 2009
One reason the big Asian creditor nations built up huge surpluses before the crash of 2007 was that they were badly scarred by the financial crisis a decade earlier and were determined never again to be at the mercy of the IMF. The IMFs response X as it has always been since 1944 X was that countries seeing capital flight should be subject to austerity programs. So, reforms must overhaul the fund X not just to beef up its surveillance role but to make it less dominated by developed nations... (Taipei Times, Taiwan -- Sports)
Russia: Unclenching its fist? Mar 24, 2009
Capital flight from Russia has reached $40 billion. Under these conditions, Putin is in no position to carry out an assertive policy of reconstituting Moscow's "near abroad" of pliant neighbors. (Christian Science Monitor)
Getting a lift from a falling dollar Mar 24, 2009
Emerging regions of Europe, in contrast, face further capital flight as foreign banks reduce credit lines. A weaker dollar will do little to help countries like Hungary and Poland that have substantial foreign debt denominated in euros and Swiss francs. (International Herald Tribune -- Business)
Feature Story Mar 21, 2009
Investor's Business Daily: Fin'l Rescue Moves Face New Doubts After AIG Bonus Fix. Fin'l Rescue Moves Face New Doubts After AIG Bonus Fix. (Investors Business Daily)
Fin'l Rescue Moves Face New Doubts After AIG Bonus Fix Mar 21, 2009
INVESTOR'S BUSINESS DAILY. Populist sentiment, heating up since the House first voted down the $700 billion financial rescue bill last fall, finally came to a boil. (Investors Business Daily)
Are we heading towards deglobalisation? Mar 14, 2009
Already, the Asian region has suffered a capital flight since the third quarter of last year. And with the massive bailout plans happening in the West, banks and financial institutions in those countries are expected to face increasing pressure to retreat from international business and focus on their home markets. (The Star Online, Malaysia -- Business)
G20 split over more crisis spending as meeting looms Mar 13, 2009
5 percent of GDP, but it has been raising its rates to support the rouble and stem capital flight as investors flee emerging markets. China's Premier Wen Jiabao sought to reassure the world on Friday that China would deliver on its promise of 8 percent growth in 2009 despite a collapse in Western demand for Asian goods, and could roll out extra stimulus spending if needed to meet the goal. (International Herald Tribune)
G-20 finance officials meet amid policy divisions Mar 13, 2009
Mantega argues that the crisis has resulted in capital flight from emerging markets, and that nations such as the U.S. and Japan, which are seeing heavy inflows, should put that money into the IMF, which could distribute it among developing economies through loans. The competing priorities have led many analysts to make comparisons with the Doha round of trade talks at the World Trade Organization discussions that have achieved little as agricultural nations repeatedly blocked attempts to open... (Atlanta Journal-Constitution -- Business)
Will the Economy Be Ahmadinejad's Downfall? Mar 12, 2009
"Over the last seven years, Iran has had an incredible $250 billion in capital flight, mostly to Dubai," he explains. The dangerous irony confronting Ahmadinejad is that it was his ability to tap into economic grievances with populist promises that got him elected four years ago, but the economy by almost every measure is far worse today. (Time.com)
Bonds: • Bonds End Mostly Lower As Safety Bid Is Cooled By Forthcoming Deluge Of Supply Mar 10, 2009
"There's still a lot of capital flight away from risk," said Jack Ablin, chief investment officer at Harris Private Bank. Wall Street fell again Monday, with major stock indexes down more than 1. (Investors Business Daily)
Economic storm in Eastern Europe gets on global nerves Mar 10, 2009
The situation got even worse as Western European banks and foreign investors began to withdraw money from the region in the wake of the financial storm, bringing serious capital flight, Kong said. The Institute of International Finance (IIF), a leading global association of financial institutions consisting of over 380 members, has predicted a net outflow of about 61 billion U.S. dollars this year from the emerging markets. (Xinhuanet, China)
Mills must call his men to order - Ntim Feb 28, 2009
Instead of the NDC building upon the sound economic policies bequeathed to it by the NPP when they assumed power, they quickly declared the country broke, thus diminishing investor confidence which has led to capital flight with its untold pressure on the dollar. Whereas the NPP was able to hold the exchange rate from 0. (Ghana Web, Ghana)
NDC is collapsing economy - NPP Feb 27, 2009
He said, after realising that the economy was getting out of control, the NDC announced to the world that Ghana was broke, thus eroding investor confidence and its attendant capital flight from the country. In a statement issued in Accra yesterday, Mr. Ntim also expressed concern over the harassment and detention of Dr. Mahamoud Bawumiah, the running mate of Nana Akufo-Addo in the 2008 elections, the illegal seizure of cars and brutalities meted out to supporters of the NPP.. (Ghana Web, Ghana)
EDIT: Hey, Big Spender Feb 26, 2009
FIIs stand to benefit from reduced brokerage costs, welcome in light of the capital flight still spooking the stock market. Cement and steel prices could soften, good news for construction activity. (India Times, India)
* Devaluation cant solve everything Feb 26, 2009
More importantly, when the market anticipates currency devaluation, the result will be capital flight and reluctance of overseas capital to invest in Taiwan. It will have a negative impact on domestic investment and the stock market. (Taipei Times, Taiwan -- Business)
Eastern Europe may become eye of 2nd financial storm Feb 25, 2009
In order to deal with the financial and economic crisis at home, many Western European countries have withdrawn their investments in Eastern Europe, causing serious capital flight, and thus triggering a systematic risk to the financial markets in Eastern Europe ... On one hand, in order to check the foreign capital flight and alleviate the pressure of depreciation, the governments need to raise the interest rates of their home currencies, but on the other, in order to bolster the national... (Xinhuanet, China)
Asia Needs Own Monetary Fund to Stem Crisis, Development Bank's Kawai Says Feb 25, 2009
Feb. 25 (Bloomberg) -- Asia needs its own monetary fund to protect the regions economies from capital flight as the global financial crisis deepens, according to the head of the Asian Development Banks research arm. The Feb. 22 decision of 13 Asian countries to pool $120 billion of foreign-exchange reserves to defend their currencies was an important step toward the creation of a fund, , 61, dean of the Asian Development Bank Institute, said in an interview on Feb. 23. (Bloomberg -- Japan)
Dollar Shortage Emerges Feb 24, 2009
It will be recalled that this paper reported recently about capital flight scare hitting the nation ... Lack of confidence in the country with the report of the economy being broke is also believed to have triggered the capital flight phenomenon. (Ghana Web, Ghana)
Regulators Pledge To Shore Up U.S. Banks Feb 24, 2009
"Capital flight requires capital infusion," the official told Ambinder. Regulators provided some details on that program Monday. (CBS News)
Nigeria: Divestments, Capital Flight And the National Economy [editorial] Feb 20, 2009
com: Nigeria: Divestments, Capital Flight And the National Economy (Page 1 of 1) ... Nigeria: Divestments, Capital Flight And the National Economy. (allAfrica.com)
Chinese imports to get forex fund boost Feb 19, 2009
A weaker yuan could trigger a capital flight, too, they said. The country's foreign exchange reserves increased by about 280 billion U.S. dollars in the first six months of 2008, but its rise was about half of that in the second half. (Xinhuanet, China)
European banks face new risks from east Feb 19, 2009
Amid fears of capital flight, Eastern European currencies have suffered extreme volatility and have fallen sharply in recent days, leading to concern of a looming currency crisis. So far, Hungary and Latvia have already sought massive bailouts from the International Monetary Fund (IMF). (Xinhuanet, China)
Irving Fisher:Out of Keynes's shadow Feb 13, 2009
Martin Barnes of the Bank Credit Analyst thinks this highly unlikely: You d have capital flight out of the dollar. The only way it works is if every country is doing it, or with capital controls. (The Economist)
Govt bails out textile industry with N70b Feb 10, 2009
Capital flight hits N812b ... " And speaking about the efforts made to restore confidence in the capital market, Okereke Onyuike said: "Somebody also asked a question about statistics of how much capital flight has gone. (Guardian News, Nigeria)
Nigeria: Stock Market - 'U.S. $4 Billion Capital Flight Triggered Crisis' Feb 10, 2009
com: Nigeria: Stock Market - 'U.S. $4 Billion Capital Flight Triggered Crisis' (Page 1 of 1). Nigeria: Stock Market - 'U.S. $4 Billion Capital Flight Triggered Crisis. (allAfrica.com)
Political aide says Kremlin may need to ease control Feb 10, 2009
Last week, Fitch Ratings downgraded Russia's sovereign rating to just two notches above junk status, citing low commodity prices, capital flight and the quick depletion of reserves. Today in Business with Reuters. (International Herald Tribune)
United States of Argentina Feb 8, 2009
The disaster provoked capital flight and the collapse of investor confidence, not to mention the annihilation of middle-class savings. In the words on one observer, Jos; Ignacio Garc;a Hamilton, the nation became an international beggar with the highest per capita debt in the world. (The American Conservative)
Concern as money moves out of China Feb 7, 2009
Total outflows in the fourth quarter were as much as $240 billion, but this is using the broadest possible definition and includes everything from capital flight to a slowdown in repatriation of overseas profits by Chinese companies ... Most troubling for China would be if a sizable portion of these disparate streams represented capital flight people taking their money out because they worry about the stability of the country ... Most economists say that actual capital flight seems the exception... (International Herald Tribune)
