Why Yudhoyono needs FDI Nov 19, 2009
Some analysts believe the past two years of relatively robust foreign capital flows have marked a positive turning point for the economy, which a decade later still faces lingering effects from the 1997-98 Asian financial crisis. At its height, that crisis saw GDP contract by 13%, the local currency plummet to 17,000 rupiah to the US dollar from around 2,000, and ratings agencies downgrade sovereign long-term debt to junk bond status. (Asia Times Online)
Imbalances That Strain the Euro Zone Nov 19, 2009
In deficit countries, foreign capital flows fell sharply in 2008, by some 28% in Spain and 30% in Portugal, for example, contributing to deep recessions. Today, after the wage and price runups that occurred in the deficit countries during the boom, their exports are less competitive on world markets than those of other euro zone countries. (BusinessWeek)
Africa: Continent Needs More FDI to Reduce Poverty Nov 16, 2009
Most of the participants admit that the current financial crisis has had stronger negative repercussions on economic growth in Africa because of the reduction in foreign capital flows. Gohou and other economists say Africa need to put policies in place to attract foreign investment tailored to address the specific needs of each regional. (allAfrica.com)
AEC Participants Discuss Impact of Foreign Direct Investments on Poverty Reduction in Africa Nov 13, 2009
Most, if not all researchers, fortunately admit that the current financial crisis may have stronger negative repercussions on economic growth in Africa because of the potential reduction in foreign capital flows. It is believed that in some regions, channelling FDI flows into investments that benefit the poor is missing, although at the aggregate level, FDI contributes to poverty reduction. (allAfrica.com)
* The almighty US dollar escapes death once again Oct 25, 2009
Moreover, disenchantment with the sophisticated instruments that US financial institutions specialize in originating and distributing means more limited foreign capital flows into the US. Fewer foreign purchases of US assets again imply a weaker dollar. Extrapolating the past into the future, forecasters predict that the dollar will decline further. (Taipei Times, Taiwan -- Sports)
'Strong domestic growth drivers put India ahead' Oct 12, 2009
Sustained foreign capital flows and remittances should help the rupee remain firm. The currency is undervalued in purchasing power parity terms and should appreciate over the medium-to-long term, given the relatively strong growth prospects for India. (India Times)
Bank cycle still has way to go: Clyne Jun 28, 2009
more confident, than perhaps in the last cycle, we will be able to work with our customers to get a better outcome," he said. Mr Clyne also said Australia's reliance on foreign capital flows for much of its credit funding needed to be addressed. "If Australia's going to have credit growth beyond its capacity to save then I think we need to look at opportunities to address that offshore funding reliance, because what becomes clear is when you have a crisis as we've been having, is that you're... (Sydney Morning Herald -- Business)
Renewed bull wave continuation of 2002 bull run: Angel Broking Jun 22, 2009
With foreign players investing again, foreign capital flows have turned positive in India, alongside our inherently strong domestic savings. However, while our deposit growth rate has been as high as 22%, credit growth continues to languish at 16-17%, clearly pointing towards a further correction in interest rates. (India Times)
After polls, Moody's rates India stable May 29, 2009
The stable outlook on the sovereign rating recently came under growing pressure due to a substantial deterioration in the governments fiscal position amid a rise in the countrys dependence on foreign capital flows to drive its investment cycle. The policy framework remains focused on countercyclical measures. (India Times)
* Developing countries in a de-globalized world May 16, 2009
The problem is not only that foreign capital flows can easily reverse direction, but also that they produce the wrong kind of growth, based on overvalued currencies and investments in non-traded goods and services, such as housing and construction. Growth driven by high commodity prices is also susceptible to busts, for similar reasons. (Taipei Times, Taiwan -- Sports)
G20 needs to consider financial reform not just for this continent Mar 16, 2009
This is likely to be exacerbated by declining foreign capital flows into African economies in the form of foreign direct investment, portfolio flows and remittances from developed countries. Several participants emphasised the threat to African economies of increased protectionism stemming from the crisis in the context of an already constipated multilateral trading system. (Business Report, South Africa)
* Foreign funds purchase of debt queried by Perng Mar 13, 2009
The NT dollar has remained relatively stable despite recent fluctuations, Perng said, adding that he checked foreign capital flows daily to see if the funds matched their intended purposes. He said the heavy trading in NT dollars was an isolated occurrence but the bank was keeping a close watch on the situation. (Taipei Times, Taiwan -- Sports)
Press Release: Statement by IMF Deputy Managing Director Murilo Portugal at the Conclusion of his Visit to Serbia Feb 11, 2009
"Tackling Serbia's significant macroeconomic imbalances requires both additional external financing and stronger overall economic policies. The growth boom in recent years fed off large foreign capital flows that supported household and corporate credit. These flows have dried up, and the private sector has to adjust by reducing spending and imports. Additional financing from international financial institutions may smooth this adjustment and help protect the most vulnerable population groups,... (IMF News)
