In The News

Islamic Finance Confronts Pandemic: Global Finance

Chloe Domat May 24, 2020
The Islamic finance industry, operating in about 80 nations, has a large market share in microfinance, small enterprises and retail lending. The Covid-19 pandemic will hit the industry hard with governments closing stores and ordering social-distancing, along with many borrowers seeking forbearance, restructuring or new loans. Governments hurried to assist corporations, with less support for low-...

Threat to US Dollar’s Global Dominance: Bloomberg

Joe Weisenthal May 20, 2020
Before Covid-19 emerged, the US dollar’s fundamentals were strong, but imbalanced: The dollar’s share of global transactions grew as the country’s share of worldwide gross domestic product declined. Some analysts suggest that US policymakers abuse the dollar’s dominance with overspending and massive debt. Relying on the dollar may have become habit for some countries, explains Joe Weisenthal for...

Covid-19 Stimulus: South China Morning Post

Nicholas Spiro May 15, 2020
Central banks around the globe organize massive stimulus programs from central banks, but these are not without risk. By reducing interest rates and rapidly investing in a range of assets to prop up prices, central bankers hope to save jobs and prevent a long economic depression. Governments already holding heavy debt extend rescues to a range of businesses, including some that would have failed...

German Court Ruling on ECB Asset Purchases: FT

Martin Wolf May 13, 2020
The German constitutional court ruled against the European Central Bank’s public sector purchase program, launched in 2015. Martin Wolf argues for the Financial Times that the move contributes to EU disintegration: “It is an attack on basic economics, the central bank’s integrity, its independence and the legal order of the EU…. The court “did not argue that the ECB had improperly engaged in...

Saudi Arabia Imposes Austerity Measures: WSJ

Stephen Kalin and Donna Abdulaziz May 11, 2020
Countries around the world have their hands full responding to the Covid-19 pandemic and cannot afford missteps in other areas. In early March, OPEC nations failed to reach agreement with non-OPEC nations to limit oil production, and Saudi Arabia responded by opening the pumps, forcing prices to plummet. The oil producers later reached agreement to limit production, but it was too late. Two...

Plunged Global Factory Output: Wall Street Journal

Paul Hannon and Tom Fairless May 7, 2020
Investors and policymakers regard the Manufacturing Purchasing Managers Index, or PMI, as a leading indicator of economic activities. PMI above 50.0 implies a rise in activities, offering an optimistic forecast while a reading below that shows economic decline. With the wide spread of COVID-19 around the world and more countries joining the lockdown, PMI witnessed a sharp drop in April. In India...

China Could Cut US Debt Holdings: SCMP

Karen Yeung May 7, 2020
As tensions between the United States and China rise, analysts point out that China could reduce its holdings of US treasury securities. The United States borrows heavily to pay for its Covid-19 response, and the administration blames China for the pandemic. News reports suggest that some US officials have questioned if the $1 trillion in debt owed to China could be cancelled. Such an extreme...