Venezuela’s economic situation, marked by inflation, has driven the increase in the sending of remittances in cryptocurrencies to the country.

Another of the compelling reasons for a rebound in this alternative is the difficult access to foreign currencies, especially the dollar.

Crypto remittances demonstrate a change in “patterns of sending money to the country, offering an agile and decentralized alternative to traditional money transfer methods.”

The use of blockchain technology by Venezuelans to receive funds quickly and safely demonstrates not only “the growing confidence in cryptocurrencies as a store of value, but also as a tool to circumvent financial restrictions imposed by government policies and international sanctions.”

With the increase in remittances in cryptocurrencies, the recipients of the money benefit but also the market, since the alternative is to inject liquidity in the absence of access to foreign currencies.

It is estimated that these remittances help “maintain domestic consumption and support key sectors such as retail trade and services, partially cushioning the effects of the economic recession.”

With this trend, Venezuelans demonstrate that they are capable of adapting to the challenges of the country’s economy, in addition to an advance in the way they “manage their personal and family finances” with the help of blockchain technology evolves.

M.Pino

Source: Binance

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La entrada Remittances in cryptocurrencies to Venezuela increased apareció primero en Bitfinance.

Argentina’s economic crisis, which will contract by 2.8% in 2024, has led the International Monetary Fund (IMF) to cut Latin America and the Caribbean’s growth forecast for this year by 0.4 percentage points, to 1.9%.

This is indicated by the IMF’s latest Economic Outlook Report (WEO), which attributes the fall to a “significant policy adjustment” aimed at restoring macroeconomic stability in Argentina.

In October, the IMF had projected Argentina’s growth of 2.8%, but in three months it has changed to a contraction of 2.8%, which is a difference of 5.6 points. By 2025, the IMF expects Argentina to recover and grow by 5%, 1.7 points more than expected in October.

The situation in Argentina affected the region’s average growth. In total, Latin America and the Caribbean will grow by 1.9% this year, 0.4 points less than the October estimate. By 2025, the region will grow by 2.5%, 0.1 points more.

Growth in Latin America Growth in Latin America and the Caribbean is below world growth, which the IMF increased this Tuesday by 0.2 points, to 3.1%.

The deputy director of the Fund’s Research Department, Petya Koeva, explained in an interview that, if Argentina and Venezuela are excluded, the rate of growth this year would be 2.4% and that of next year 2.3%.

In addition, Koeva noted that the two major economies of the region will perform better than expected. Mexico will grow this year by 2.7%, 0.6 points more, and in 2025 by 1.5%, the same as the previous projection.

K. Tovar

Source: BancayNegocios

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La entrada IMF predicts a contraction in Latin America’s GDP apareció primero en Bitfinance.

The Argentine executive, under the administration of Javier Milei, revised the proposal of the so-called ‘omnibus law’, contemplating the possibility of shortening the initial emergency period. At the opening of the debate on this legislative reform in Congress, representatives of the Government presented this new perspective.

The omnibus law, an ambitious project with 664 articles, proposes extensive modifications in various areas of the State. Originally, it would allow Milei to declare a public emergency until 2025, with the option of extending it for an additional two years.

However, during the first presentations at the Congress, Eduardo Rodríguez Chirillo, Secretary of Energy and co-author of the project with Federico Sturzenegger, suggested that the emergency period could be limited to one year, with an optional extension of an additional year.

“The reduction of the emergency period to one year, plus an extension, has been contemplated in the final version of the project,” Chirillo admitted, emphasizing the need for legislative powers to reduce the size of the public administration.

On the other hand, Rodolfo Barra, Attorney of the Treasury, stressed the urgency of the proposed reforms in the law to face the economic crisis, even suggesting that the Constitution would not be an obstacle in this context. During the day, the first of three scheduled debates began, with the participation of key figures such as the Minister of Justice, Mariano Cúneo Libarona, and Chirillo himself.

Rodrigo De Loredo, deputy and leader of the UCR bloc, expressed his willingness to collaborate in the passage of the law, although he stressed the need to prioritize social demands and a plan for economic and financial stability. The Radicals, part of the Together for Change coalition, have expressed concern about the project’s approach.

Pro MP Silvia Lospennato announced that her party will propose changes to the bill, rejecting the idea of a declaration of emergency with discretionary powers and extensions by the government. “We will not support emergency self-prolongation, a practice that we consider an institutional violation,” Lospennato said, referring to the actions of Alberto Fernández’s previous Peronist government during the Covid-19 pandemic.

K. Tovar

Source: La100

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La entrada Milei could change the conditions of the “emergency” apareció primero en Bitfinance.

Within the framework of the 7th plenary session of the Central Committee of the Communist Party of Cuba (PCC), concluded this Saturday in Havana, an ambitious macroeconomic stabilization program has been discussed and evaluated. This initiative aims to address the current monetary, financial and fiscal imbalances that have plunged the country into a deep crisis over the past three years.

The 15 new points proposed at this meeting, intended to be incorporated into the Economic and Social Policy Guidelines of the Party and the Revolution, include crucial measures to boost economic recovery. Among them is a “macroeconomic stabilization programme”, previously demanded by independent experts due to the deterioration of economic indicators.

The programme seeks to establish a monetary, exchange-rate, financial and fiscal environment conducive to economic recovery and growth, as well as the stability of the national currency and the reduction of inflation.

In addition, it has been proposed that the economy be effectively de-dollarized and that an exchange rate based on stable economic criteria be implemented. These measures seek to ensure that variables and prices are not administratively fixed, but reflect the real conditions of the economy.

In this context, the plenary also suggested the elimination of an earlier line advocating the continuation of the Ordinance Task, a set of reforms that sought to put an end to monetary duality and that has generated significant imbalances at the micro and macro levels.

Other recently proposed guidelines seek to reduce the monetary issuance associated with fiscal and quasi-fiscal activity, with the aim of combating inflation and the loss of purchasing power of wages and pensions. It should be noted that Cuba is about to close its fourth consecutive fiscal year with a deficit exceeding 10% of Gross Domestic Product (GDP).

K. Tovar

Source: Bancaynegocios

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La entrada Cuba to promote an economic stabilization program to overcome the crisis apareció primero en Bitfinance.

In a drastic economic turnaround, last Tuesday, the government headed by Javier Milei devalued the national currency by more than 50 %, setting the official exchange rate at 800 pesos to the dollar, compared to 391 at the close of the previous Thursday. The measure was announced by the Minister of Economy, Luis Caputo, who warned of the imminent risk of hyperinflation in Argentina.

Minister Caputo highlighted the root of the country’s economic problems, noting that the crisis has always been fiscal in nature. In an effort to address this problem, he announced austerity measures, including cuts in energy and transport subsidies. “The genesis of our problems has always been fiscal. The country must overcome its addiction to the deficit in public finances,” Caputo emphasized during his statement.

In his previously recorded speech, Caputo explained that the official exchange rate is raised to 800 pesos to provide appropriate incentives to the productive sectors and encourage the increase of production.

Despite the devaluation, the government will maintain, at least for now, the currency control system implemented since 2019, which includes a dozen different exchange rates.

Javier Milei, a 53-year-old economist who during the election campaign symbolized his commitment to reducing public spending by brandishing a chainsaw, took office last Sunday. He emphasized the need for a “shock” treatment to overcome the crisis, ruling out any gradual approach. The trustee aims to make a fiscal adjustment equivalent to 5% of the Gross Domestic Product.

“Today, the State artificially maintains extremely low prices in energy and transport tariffs through these subsidies,” declared the Minister, referring to public spending aimed at keeping prices low in various consumer sectors.

K. Tovar

Source: Descifrado

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La entrada Argentine government devalued the currency by 50 % apareció primero en Bitfinance.

As a result of the constant increase in the prices of goods and services, Venezuela could reach an inflation rate of 300 %.

Economists point out that the injection of millions of dollars into the banking sector by the Central Bank of Venezuela has contributed to this inflationary crisis.

According to Luis Bárcenas, “the injection of more than 180 million dollars” recently to the banks would demonstrate the “fragility in which the Venezuelan economy is submerged.”

Analysts predict that if the increase in the prices of goods and products continues, calculated between 10 and 20 % per month, the country advances to an inflation of 300 %.

Bárcenas indicated, in a recent radio interview, that Venezuelan institutions show distrust of the State’s measures to curb inflation.

According to the economist, “inflation increases 5 % every week, the exchange rate that now seems to adjust more to the reality of prices of several years ago, so we see that this aggressive action that the BCV has to curb inflation.”

M.Pino

Source: hispanopost

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La entrada Inflation continues to rise in Venezuela apareció primero en Bitfinance.

The Latin American and Caribbean regions are the most susceptible to a possible recession in the US economy, according to the report ‘The vulnerabilities of Latin America and the Caribbean in the face of a US recession.’ published by Fitch Ratings.

Among the reasons, the credit rating company points to the geographical proximity of both regions and the various transmission channels, which links them enormously to the economic cycles and policy decisions of the United States, whose economy could enter a recession from of the second quarter of 2023, according to the latest report from Fitch Ratings.

Specifically, the main transmission channels to Latin America and the Caribbean are trade, remittances, tourism and commodity prices. “The South American economies have limited trade links with the US, but are indirectly affected through the impact on world trade and commodity prices,” they explained from the rating agency.

However, within these regions, the different economic characteristics of the countries mean that the impact can “vary considerably”. Thus, for example, the lower foreign demand from the US mainly affects Mexico due to its dependence on exports, as it represents one of Washington’s three main trading partners. In this regard, it should be remembered that a large part of Central American exports are demanded by the US, although these countries tend to have a more diverse export market base.

Risk in remittances

Weakening US household income and employment could jeopardize migrants’ ability to send remittances home and discourage tourism. Remittances account for more than 20 % of the GDP of some Central American countries, making the Caribbean and Central American economies vulnerable to a “sudden stop” in tourist arrivals.

In addition to the recession in the United States, there are challenges for frontier markets, since more expensive external financing could complicate policy options, and for the more developed economies of the region if their current account deficits are large.

Finally, when it comes to credit ratings for Latin America and the Caribbean, Fitch Ratings expects “limited pressure.” Any impact on the ratings will ultimately depend on the magnitude of the US economic shock and the ability of each country to absorb it.

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Source: dpa

La entrada Latin America and the Caribbean, the regions most exposed to a recession in the United States apareció primero en Bitfinance.

The most recent report from the UK Office for National Statistics puts the number of companies that have filed for bankruptcy between April and June at 5,629. The figure far exceeds that recorded for the same quarter between 2015 and 2019, when the pandemic appeared.

The high costs of services, including gas and electricity, affect this decision of certain companies to declare insolvency, according to the ONS. The bureau adds rising prices for raw materials as well as disruptions to supply chains.

During the time that the Covid-19 pandemic has lasted, the British government has been implementing packages of financial support measures not only for companies but also for citizens.

However, in the case of companies with a workforce of less than 50 workers, the hardships have increased. It is estimated that among the most affected sectors is manufacturing, construction and hotels.

In August, according to a survey carried out by the ONS, at least 11 % of companies indicated that they perceived a risk, between moderate and low, of falling into bankruptcy.

M.Pino

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Source: swissinfo

La entrada UK business failures on the rise apareció primero en Bitfinance.

The economist and university professor, Luis Oliveros, commented that the reopening of the casinos occurs because “there is a need for money ” in the country and not because the country’s economic situation is improving.

“These casinos Chávez closed them, many of us criticized him because we were in the middle of the moment when private companies were being persecuted (or cornered),” said the economist.

He also explained that casinos “are not going to solve the economic crisis in Venezuela, but it is always good that more private companies are active in Venezuela.”

He pointed out that these places can become a meeting point for people to be entertained and more if it has the security mechanisms to prevent the occurrence or proliferation of illicit businesses with money.

Abrir 30 casinos es una buena noticia para el sector privado, para el estado (impuestos) y también para la gente (+ empleos, otra diversión).
¿Se acaba la crisis? Para nada.
¿Qué CH los había eliminado? Hoy Maduro es pragmático, necesita ingresos.
Esta es la nueva Venezuela.

— Luis Oliveros (@luisoliveros13) September 2, 2021

Comienzan a reabrir casinos en Venezuela.
Estamos en un bucle.

— Luis Oliveros (@luisoliveros13) September 1, 2021

Source: doblellave.com

La entrada The opening of casinos is a good sign for private sector apareció primero en Bitfinance.

The United States Federal Reserve (Fed) announced that during 2021 it will resume its listening events, called ‘Fed Listens’, with the aim of getting first-hand information about the economic recovery after the crisis caused by the pandemic of Covid-19.

The ‘Fed Listens’ events were held throughout 2019 with the aim of establishing a dialogue with the public in order to better cope with the monetary policy review. The changes were formalized in August 2020, when the Fed modified its monetary strategy to allow inflation to exceed the 2 % threshold for a certain period of time.

The goal of the events taking place this year will be to hear directly from citizens, households and communities about the economic recovery.

“During the review of the Federal Reserve’s 2019 monetary policy framework, the ‘Fed Listens’ series of events provided valuable ‘feedback’ from a wide range of groups and communities on the economy and other issues related to our investment objectives. monetary policy,” said Michelle Bowman, governor of the Fed.

“Continuing the initiative in years when we are not reviewing the framework will equally benefit the Federal Reserve’s policy process, while improving transparency and accountability,” the directive added.

K. Tovar

Source: dpa

La entrada Fed will resume its audience listening events apareció primero en Bitfinance.