Month: July 2022

How long can the Bank of Thailand be at fault?

How long can the Bank of Thailand be at fault?

The Federal Reserve raised its benchmark interest rate in June, and the central banks of the United Kingdom and Switzerland followed suit, so how long can a Thai bank swim against the current rate of global rate hike?

BOT is one of the few major Asian central banks to keep rates below record lows since the onset of the epidemic, but it has recently signaled a change in policy as inflation reached a nearly 14-year high in May.

At the Monetary Policy Committee (MPC) meeting on June 8, 2022, the MPC voted to maintain the policy rate at 0.5%, but it was a close split decision andree members voted to increase the policy rate by 0.25 percentage points.

The Thai economy will recover faster than expected

Furthermore, the committee acknowledged in its comments that the Thai economy will continue to recover and may expand faster than previously expected due to strong domestic demand and the pickup of foreign tourists. The committee further considered that a very favorable monetary policy would require less in the future.

Jeremy Zuck, Asia-Pacific Sovereign Director at Fitch, said in his presentation last week that he expects Thailand to grow 3.2% of GDP in 2022 and 4.5% in 2023, which will be affected by steady growth in tourism and domestic demand.

Meanwhile, the yield on Thai government bonds has been rising in line with Thailand’s monetary policy normalization and US Treasury yield expectations. Since the beginning of 2022, the yield on 2-year Thai government bonds has risen 109 bps to 1.7%, while the yield on 10-year Thai government bonds has risen 94 bps to 2.8%.

The EIC expects the MPC policy rate to increase by 0.75%

In a recent article, the EIC (SCB Economic Intelligence Center) expects the MPC to raise the policy rate to 0.75% in 3/2022, reflecting the committee’s assessment that the Thai economy will expand faster than expected and lead to inflation. Grow and stay improved.

The EIC thus expects the MPC to increase the policy rate by 25 bps in Q3 to reduce the degree of accommodation of an ultra-simple monetary policy due to the following reasons

SCB Economic Intelligence Center

Rising inflation

The BOT has forecast inflation of 6.2% this year and 2.5% next year and economic growth of 3.3% in 2022 and 4.2% in 2023. But BoT’s dual attitude has increased the cost of living for families. Mostly driven by fuel and food costs.

The weakness of the baht, which was once welcomed for growth in an export-dependent economy, has become a source of concern for Thai policymakers as it already raises rising import costs and hurts families, in addition to prolonging war between Russia and Ukraine Can

The success of the Virgin Orbit mission has brought the UK launch one step closer

The success of the Virgin Orbit mission has brought the UK launch one step closer

The next satellite launch of Virgin Orbit will take place from the UK, following the success of the “Straight Up” mission, which began today in Mozave, California.

Science Minister George Freeman and the UK Space Agency have welcomed the news that Virgin Orbit has successfully completed its fourth mission from California and its first night launch.

With the completion of this mission, Virgin Orbit is on its way to launch from Spaceport Cornwall later this year. With the UK Space Agency and Cornwall Council assisting in the launch, Spaceport Cornwall is set to create 150 jobs in the local area.

Science Minister George Freeman said: “Congratulations to Virgin Orbit on another successful U.S. mission that demonstrates the ability of an innovative launch platform to put satellites into orbit day or night. Incredible.

“We are in a strong position to capitalize on the growing global demand for small satellite launches and to keep space and our planet sustainable for future generations.”

Matthew Archer, director of commercial spaceflight at the UK Space Agency, who joined the Virgin Orbit team for the launch from Mozambique Air and Space Port, said: Working and standing next to our partners to witness another successful launch for the team is a matter of specialty.

“The UK is home to some of the world’s leading satellite manufacturers, who are currently shipping their products abroad for launch. We support spaceport and launch operators by providing services across the UK and building a new domestic launch market by catalyzing investment from around the world. ”

Today’s Virgin Orbit mission has launched seven satellites on behalf of the U.S. Space Force that will test space-based communications, space navigation and climate change.

Several national and international satellites have also been confirmed for the first UK launch later this year, with customers including Space Forge, Satellite Application Catapult and Horizon Technologies, MOD, DSTL and the US National Reconnaissance Office and the Sultanate of Oman.

Unlike many rockets, Virgin Orbit’s Launcher One flies horizontally, carried by a modified Boeing 747 aircraft called Cosmic Girl.
This was Virgin Orbit’s fourth commercial flight. After launching from Mozave Air and Space Port in California, the company launched its first satellite into space in January 2021.

Melissa Thorpe, head of Spaceport Cornwall, said: “The success of this latest launch in California has been very fruitful for Spaceport Cornwall and the UK space sector. It was amazing to see both the Virgin Orbit team and our team working together to reflect U.S. activities in real-time – to make sure we were mission-ready for the summer. It gave us a taste of what was going to happen in front of us and our team could not be more excited. “

The UK government’s National Space Strategy determines how the UK will become the first country in Europe to launch a satellite into orbit in 2022. Spaceport Cornwall is one of seven potential spaceport sites across the UK that will help cement the UK’s role as a science superpower. And help bring a wave of innovation across the country.
The name of the launch, “Straight Up”, is inspired by the song by American singer Paula Abdul with that title, from her album Forever Your Girl.

Sustainable-linked bonds: a financing solution for emerging markets?

Sustainable-linked bonds: a financing solution for emerging markets?

Emerging markets are using the Environmental, Social and Governance (ESG) metrics to raise debt and finance their energy transformation, with Chile recently becoming the first country to issue bonds specifically tied to sustainable goals.

  • – Chile launched the world’s first sovereign durable-linked bond earlier this year
  • – Growing trend of providing climate-friendly loans in emerging markets
  • – Total sustainable debt reached a record $ 1.2trn in 2021

Chile, which was hit by a decade-long drought in early March, sold মার্কিন 2 billion in US dollar-rich sustainability-linked bonds (SLBs), becoming the first sovereign to do so.

Unlike other types of green bonds that raise money for environmentally friendly developments such as solar and wind power projects, SLB encourages climate-positive solutions that include many environmental objectives, including a series of penalties for issuers if they fail. Meeting goals.

In the case of Chile, the bond stipulates that the country will not emit more than 95 tons and equivalent of carbon dioxide by 2030 and that by 2032 60% of its electricity generation should come from renewable sources.

Although sovereign bonds have been slow to enter the market, the SLB segment is one of the fastest growing sectors of ESG finance.

Since the launch of the first performance-connected structure by Italian energy giant Enel in late 2019, according to Bloomberg, the SLB issuance pipeline has grown dramatically, from $ 11bn in 2020 to a record $ 110bn last year. The international credit rating agency Moody’s has predicted that this number will reach 200 200 billion by 2022.

Innovative loan solutions gain traction

Chile’s SLB issue is an example of how emerging markets are experimenting with innovative, environmentally friendly financing tools.

As OBG reported, in September last year the Belizean government introduced a debt exchange for nature to restructure its only sovereign bond.

The deal saw Belize buy back its debt at a significant discount – $ 0.55 cents per $ 1 – in exchange for increasing its efforts to protect the marine environment.

Preserving the marine ecosystem is key to Belize’s environment as well as its economy, and the agreement demonstrates the opportunity to combine financial, economic and environmental goals.

The country is home to the world’s second-largest barrier reef, and its 125-meter-deep blue hole is considered the world’s best diving site. Tourism accounts for about 40% of its GDP and workforce, while the fishing industry employs another 10%.

Although this was not the first debt-nature swap – Bolivia signed its first such agreement in 1987 – the development is an example of a increasingly diverse way in which emerging markets seek to raise funds, especially with the increasing international focus on ESG.

Another environmentally friendly form of money is the blue bond. Like green bonds, blue bonds are instruments of debt issued to support sea-friendly enterprises and investments in so-called blue economies.

The world’s first sovereign blue bond was launched in 2018, when Seychelles raised m 15m from international investors to help expand the maritime region and improve governance in its fisheries industry.

Since then a number of institutions – including Nordic Investment Bank and Morgan Stanley – have launched blue bonds. In September last year, the Asian Development Bank issued its first Blue Bond, a 1 151m, 15-year instrument that will finance ocean-related projects in Asia and the Pacific.

Sustainable financing has reached new heights

The expansion of the sustainable finance offer reflects the growth of the larger ESG finance market.

According to the Climate Bond Initiative (CBI), total durable debt reached a record $ 1.2 trillion last year.

It was initially driven by the green bond market, which reached a historic high of 17 517.4bn, almost double the 2020 total of $ 270bn. The CBI has predicted that this number could reach $ 1 trillion this year.

Social, sustainability and transition bonds also recorded significant growth by 2021.

Although Europe, North America and China are leaders on this front, several emerging markets are making substantial contributions.

Chile, having stopped selling its recent SLB, has proven itself as a regional pioneer. According to the CBI, the government is the largest issuer of ESG bonds in Latin America with a total value of $ 33bn, and the only country in the world to issue green bonds, social bonds and SLBs, according to the CBI.

Elsewhere in April, The Red Sea Development Company, the developer of the Saudi tourism project, secured an SR14.1bn (3.8bn) green bond from four Saudi banks, the fund dedicated to building 16 renewable energy-powered hotels across the country.

Meanwhile, as a sign of the green potential of Islamic financing, in June Indonesia raised $ 3 billion in sovereign sukuk (Islamic bonds) that would help finance sustainable development projects in the country.

As countries continue their recovery from the Covid-19 epidemic and seek to pursue a carbon-neutral future, innovative sustainable-centric lending instruments can be an attractive solution for governments in many emerging markets – both from a financial and policy perspective.

Read more

How to buy gold online

How to buy gold online

Due to the growing volatility of the stock market and political instability, more and more investors are turning to precious metals to diversify their investment portfolios. Gold, which has historically held its value during times of change in large stock markets, has been shown to be a successful inflation hedge.

Physical gold ownership is generally preferred for long-term investors rather than holding gold mining equity, gold receipts or gold ETFs. Thanks to the establishment of online gold traders it was not easy to buy high-quality physically precious metals and take them home or keep them in a safe vault. However, sometimes there are reports of counterfeit coins or gold being offered online, so you need to make sure you are buying from a reputable seller.

This guide will take you through buying gold online from dealers with a clear track record.

The best place to buy gold online

1. JM Bullion

Our vote for an online gold seller with the best services is JM Bullion, which offers its clients a user-friendly website, a fair price structure, promising customer service and investor-friendly features.

Since its inception in 2011, JM Bullion has expanded significantly, earning the title of “Fast-Growing Precious Metals Company” in the United States. This expansion is attributed to JM Bullion’s dedication to providing a wide range of products, honest pricing, dedicated customer support and easy ordering experience. This makes it worthy as our top pick for the best customer experience among online gold traders.

A JM Bullion advisor can help those who want to invest to start a precious metal IRA by forwarding their earned gold to the account of their choice and providing more information about the process.

The company is recognized by BBB and is considered the top U.S. supplier of precious metals investments.

2. Money Metal Exchange

This is the next best place to buy gold online. Through Money Metal Exchange, a nationwide bullion broker, clients can buy, sell and own investment-grade metals.

Cryptocurrencies such as cash or various payment methods, such as wire transfers, checks, credit / debit cards, digital fund transfers, and bitcoin, can be used by customers to make purchases.

3. Acres of gold

The company Acre, which manages Acre Gold, promotes itself as a brand that helps consumers find and acquire precious metals. The business believes that gold buying techniques are ancient and often confined to unreliable e-commerce sites or pan shops. In times of economic crisis, Acre, including offices in Santa Monica and Boise, Idaho, California, is a company that believes that real gold ownership can provide vital security and peace of mind.

This is our third choice best place to buy gold online.

How to buy gold from JM Bullion

The first time you submit the weight and information of your boolean, a quote is given. You guarantee the offer when you check out, which means you will be paid the agreed amount if it matches your product description. You will then receive email instructions on how to package and ship the products.

The transaction is finalized, and is paid for by your JM Boolean inventory staff once your boolean has been received and verified. Depending on where you live, the whole process takes a few days.

If you use automated buy-back services, you may discover that not everything has a fixed price; In this case, you must call or email a specialist. Everything else is the same as before. The only difference is that you need to contact the company representatives to know more about the cost.

Start with JM Bullion

If you personally decide not to store your precious metals, JM Bullion has partnered with the Transcontinental Depository Services (TDS) Vault to guarantee their safety.

TDS is located in Singapore, Zurich, Las Vegas and Toronto.

When you buy precious metals from JM Bullion, all you have to do is open an account with TDS, choose one of their four storage facilities and keep the metals safe there.

TDS offers two types of insurance. They are covered by vault insurance and a commercial “all-risk” insurance coverage for the metals in their hands.

Return Policy

JM Boolean provides a five-day return window, but they do not specify if there is a fee to repost.

Customers will not purchase any refunds less than $ 1,000 and will be liable for any market losses due to returns.

On the website, you can see a list of their buyback prices.

Payment options

JM Bullion supports a variety of payment options:

  • PayPal
  • Credit card
  • E-check
  • Wire transfer

They even allow purchases using the well-known cryptocurrencies Bitcoin and Etherium. Customers will notice that different rates will apply to different payment options.

They offer discounts for bulk purchases for military members.

JM Bullion does not charge additional commissions or fees; Instead, they make money by adding a small spread to the market rate.

They offer free delivery for orders over $ 199. However, customers who wish to receive their bullion and other metals will be charged for their delivery. For small orders, they charge 7.99.

Their prices for gold and other precious metals, including market prices, are posted on the pages of various websites.