Tag Archives: currency

China’s yuan gains IMF reserve status

The International Monetary Fund (IMF) has announced that China’s currency, the yuan, will join the fund’s basket of reserve currencies.

Currently just the US dollar, the euro, the yen and the pound are in the group.

The IMF said the yuan “met all existing criteria” and should become part of the basket in October 2016.

The yuan will now make up part of the IMF’s Special Drawing Rights (SDR) – an asset created by the IMF which serves almost as a currency.

It is used for transactions between central banks and the IMF, and is used to decide the currency mix that countries like Greece, for example, receive when the IMF provides financial aid.

The last change made to the basket was in 2000, when the euro replaced the German mark and the franc.

Read more » BBC
See more »  http://www.bbc.com/news/business-34957580

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China’s Official Press Agency Calls For New Reserve Currency, And New World Order

by Tyler Durden

We assume it is a coincidence that on the day in which we demonstrate China’s relentless appetite for gold, driven by what we and many others believe is the country’s desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China’s official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the “US fiscal failure which warrants a de-Americanized world” and flatly states that the world should consider a new reserve currency “that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.”

Of course, if China were serious, and if the world were to voluntarily engage in such a (r)evolutionary reserve currency transition ….

Read more » Zerohege,com
http://www.zerohedge.com/news/2013-10-13/chinas-official-press-agency-calls-new-reserve-currency

Bitcoin Boom? US fears digital currency may hit dollar demand

The US is becoming increasingly concerned over virtual currencies, launching broad investigations into Bitcoin and the likes. The online currency has won official recognition with a US federal judge ruling it is real money. A Texas man, being tried for laundering billions of dollars using the Bitcoin system, challenged the court by saying bitcoins were virtual and couldn’t be the basis for a fraud charge. He failed. RT’s Peter Oliver went to meet those who have no doubt bitcoin has real value.

Courtesy: – RT

Canadian dollar falls after highest job losses since recession 4 years ago

Canadian Dollar Tumbles After Unexpected March Employment Loss

By Ari Altstedter

The Canadian dollar fell in its biggest decline in nine months against its U.S. peer after the nation unexpectedly lost jobs last month by the most since the last recession four years ago.

The currency declined against 13 of its 16 major peers as Canada had 54,500 fewer jobs in March, compared with the 6,500 gain predicted in the median estimate of a Bloomberg survey of 24 economists. The nation’s jobless rate increased to 7.2 percent from 7 percent. The U.S. added 88,000 jobs in March, versus estimates of a 190,000 gain. The Bank of Canada’s March 6 policy statement called for the economy to “pick up through 2013” on its way to 2 percent annual growth.

“Huge miss on both numbers, but particularly the Canadian number after many months of surprisingly strong employment data, we’ve finally seen some give back, so pretty swift reaction for the Canadian dollar,” said Blake Jespersen, managing director of foreign exchange at Bank of Montreal, by phone from Toronto. “There’s a lot more room for this to run, I think this is just the beginning of what could be a series of weaker employment numbers in Canada.”

The loonie, as the Canadian dollar is known for the image of the C$1 coin, fell 0.5 percent to C$1.0176 at 5 p.m. in Toronto. Earlier, it fell 1.1 percent to C$1.0236 per U.S. dollar, the largest drop since June 28. One loonie buys 98.27 U.S. cents.

Bonds Gain

Canada’s benchmark 10-year government bonds rose, with yields falling four basis points or 0.04 percentage point to 1.75 percent, touching the lowest level since Dec. 11. The 1.5 percent security maturing in June 2023 rose 36 cents to C$97.68.

Crude oil, the country’s biggest export, fell 0.3 percent to $93.02 per barrel in New York, after touching its lowest point since March 7. The Standard & Poor’s 500 Index of U.S. stocks fell 0.4 percent.

Canada’s jobs figures brings the labor market more in line with other parts of the economy, where output growth slowed to a 0.6 percent annualized pace in the fourth quarter and inflation has lagged the central bank’s 2 percent target since May. Last month’s figures mean Canada posted a net loss of 25,700 jobs in the first three months of the year.

’Ugly Across’

“It was ugly across the board, there wasn’t one redeeming feature for the Canadian employment report,” said Mark Frey, chief market strategist at Cambridge Mercantile Group, a corporate currency broker, by phone from Victoria British Columbia. “When you look at the overall employment figures for Q1 in Canada, you’re seeing a pretty bleak outlook that has turned almost on a dime from the last five months of 2012.”

A separate report showed Canada recorded its 11th straight merchandise trade deficit in February, the longest streak in at least 25 years, with the shortfall unexpectedly widening as exports of metals declined.

The deficit of C$1.02 billion ($1 billion) followed a January figure that was revised to C$746 million from C$237 million, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast the string would end with a C$100 million surplus, based on the median of 21 forecasts.

“Obviously disappointment on both sides of the border,” said David Tulk, chief macro strategist at Toronto-Dominion Bank (TD)’s TD Securities unit by phone from Toronto. “The labor market is sort of catching up to the wider economic backdrop that we’ve always argued is still quite subdued, so this helps a little bit.” ….

Read more » Bloomberg
http://www.bloomberg.com/news/2013-04-05/canadian-dollar-extends-loss-after-unexpected-march-jobs-decline.html

Dinaar-Dirham conference in Lahore, Pakistan – Shariah currency (aka gold dinaars)

Shaykh Umar Vadillo’s Speech In The Islamic Economic System Conference In Lahore.

Destined for victory

By: Syed Hafiz

Despite the sweltering heat and an asthmatic aircon in the hall, at 1600 hours, drenched in sweat, the people were waiting for a person that the american congress deemed to be more dangerous than usama bin laden. Lahore’s Aiwan e Iqbal hall had never been so packed.

From Gilgit in the extreme north to Rahim yar khan in the middle, from Quetta in the west to Karachi in the southern coast ; people had gathered from all over the country to participate in this Dinar / Dirham conference. They all had the same thing to say : if its Allah and Prophet’s (pbuh) war against interest, then we are with Allah and Prophet.

Even in this stifling heat and sweat, the people’s patience was commendable. They were waiting for a person from that city, from where Muslims were expelled by the Chrisitan community.

They city that was the cultural center in Europe, and from where the sunshine of civilization illuminated the whole world – Qartaba  (Cordova, southern Spain) . The hall’s name is Aiwan e Iqbal, the great sufi poet Iqbal, and the speaker was standing in front of the picture of Iqbal on the wall. that Iqbal who imprisoned himself in the mosque of Cordoba, just to pray 2 rak’aat prayers.

Omar Ibrahim Vadilo who belonged to a strict Christian family, and who was trained to be a priest. He became the first European Muslim of the city of Cordoba. When he became a Muslim, there was no mosque in Cordoba, but now there are 4 mosques there.

He is the front man of the army of Allah, who has begun the mission to eradicate paper notes : the foundation of ‘interest’ from the world, and bring back the silver Dinar and Gold Coins system from the days of the Prophet(pbuh).

The weight and size of the coins have been kept the same as that standardized by Hazrat Umar (ra) . This enthusiastic crowd was eagerly listening to Omar Vadilo.

After starting with the name of Allah he said :

This secret is known to all the Western world that Capitalism has failed, it only remains to be officially announced. A majority in the US and Europe considers paper notes, Dollar and Pound to be a fraud.

Continue reading Dinaar-Dirham conference in Lahore, Pakistan – Shariah currency (aka gold dinaars)

The arrest of Dr Fai, may appear as isolated legal action of the US government but the scratch below the surface is just the beginning of the US retribution against Pakistani actions

On the course of retributions

By Dr. Manzur Ejaz | DAWN.COM

The arrest of Dr Ghulam Nabi Fai, and arrest warrant of a Pakistani national, Zaheer Ahmad, may appear as isolated legal actions of the US government against its citizens for unauthorised lobbying for Pakistan. However, scratch below the surface and it becomes clear that this is just the beginning of the US retribution against Pakistani actions.

The matter has been brewing and coming to the boiling point since Raymond Davis’ arrest and then jailing of those who helped the US in nabbing Osama bin Laden. In recent days, the US media has been reporting that the US is pressuring Pakistan for the releasing of Dr Shakil Afridi who was reported to be arrested for undertaking a fake vaccination campaign to get blood samples of bin Laden’s kids for DNA match.

Every Washington circle that had anything to do with Pak-American-Kashmir affairs was well aware of Dr Fai’s activities in the community, think tanks and on lobbying with Congress and Senate members. Most activists among the Pakistani-American community have been speculating about Dr Fai’s connection with Pakistani government and/or Inter Services Agency (ISI). Therefore, the allegation of having received about four million dollars from Pakistan and making over four thousand phone calls to his alleged handlers from ISI will not be totally perceived as concocted charges even among Pakistani expatriates. Pakistan embassy’s claim that Dr Fai is not a Pakistani citizen—he came from India and sought amnesty in the US—is not going to lessen the impact of such a damaging development.

Dr Fai’s activities on the Capital Hill and his arrangements of large and expensive conferences involving key people from Pakistan and India were quite open. It can be safely assumed that he was giving heart burns to Indian diplomats and lobbyists and they must have been pressurising the US government to rein him in. However, the US had chosen to look the other way for a decade and never bothered with his activities. But, now the parameters have changed. Probably because the US wants to send the message that it has some options to retaliate in Pakistani style as well.

It is well known that Pakistan has its own human intelligence assets in the US. Of course such assets must be a fraction of what a sole world superpower, the US, would have in Pakistan. The US financial power to buy human assets in Pakistan, Europe and from the rest of the world cannot be matched by a poor developing country. Nonetheless, the party with meager resources gets hurt more when mutual retributions occur.

Before Dr Fai’s arrest Washington’s diplomatic circles were subtly pointing out for such retribution. According to very reliable sources, the US side was arguing with Pakistani diplomats that millions of Pakistani-Americans live in America—some of them are Green Card Holders and technically, Pakistani nationals—and the US issues hundreds of thousands of student, visiting, business and work visas to Pakistanis while Pakistan is raising questions about a few hundred visas.

A thinly veiled threat is that if Pakistan continues restricting movements of its diplomats and citizens, the US can do the same putting Pakistani diplomats’ work in jeopardy and creating problems for visitors. Technically, the US can cancel Green Cards on very flimsy grounds, through finding any trivial fault with application process, and send thousands of Pakistanis back home. It is not very likely to happen but if things get too far it is not out of question either.

If the US expands the scope of retributions the diplomatic make-up of staff at Pakistani embassy may change as well. Pakistan may not be able to appoint ranking officials from intelligence agencies as ‘head of community affairs’ or under other such covers. The set of military mission in the embassy may be realigned as well. Most of all, the US agencies, particularly tax authorities, can be used to scare prosperous Pakistanis, mostly physicians, who hold fund raisers for the US lawmakers and arrange their meeting with Pakistani diplomats and incoming Pakistani officials. Such moves will certainly hamper little efforts Pakistani-Americans make to provide bridge between the two countries.

If the negative perception of Pakistan further deepens, the US may not be able to use drones in Pak-Afghan border areas but it will hit Pakistan’s financial system with stealth bombers. Besides stopping the financial aid, the US can harm Pakistan’s foreign currency earnings by creating difficulties for transmitting the remittances of Pakistani expatriates. Presently, Pakistani expatriates contribute a significant portion of foreign remittances of Pakistan. Furthermore, it can issue guidance to donor agencies, European partners and other private financial institution to hold back on financial transfers to Pakistan.

A sketch of broad possible scenarios of US retribution–been started with Dr Fai’s arrest–is not to scare the new found patriotism in Islamabad. Patriotic feelings are very noble, worthy and respectable but one should know the cost as well. Before throwing stones at others while sitting in the glass houses, one should have thick tall walls to protect oneself. Are Islamabad and GHQ ready to build such walls if the US process of retributions expands? Does not seem like it.

Courtesy: → DAWN.COM

Mercenaries for the Middle East – Dr Mohammad Taqi

The Saudis know that it is nearly impossible for any political uprising there to physically coalesce, due to the population centres being geographically far apart, to cause direct threat to Riyadh.

Foreign policy is everywhere and always a continuation of domestic policy, for it is conducted by the same ruling class and pursues the same historic goals”. — The Revolution Betrayed, Leon Trotsky

In his 1983 masterpiece, Can Pakistan survive? The death of a state, Tariq Ali opens the section on Pakistan’s foreign policy during the Z A Bhutto days with the above quote from Trotsky. After duly recognising the limitations of generalising this aphorism, Tariq Ali had noted that many third-world capitals pursue a foreign policy closely mirroring their domestic economic and political policies but perhaps none has done so more grotesquely than Islamabad. Tariq Ali had written:

One of the commodities exported was labour, and the remittances sent back by migrant workers provided nearly 20 percent of the country’s foreign exchange earnings. It was also reported that 10,000 Pakistani prostitutes had been dispatched to the Gulf states by the United Bank Limited (UBL), to strengthen its reserves of foreign currency. Soldiers and officers were also leased out as mercenaries to a number of states in that region. In some ways it was telling indictment of the Pakistani state that it can only survive by selling itself to the oil-rich sheikhs.”

The Pakistani military establishment’s cooperation with Arab dictators obviously dates back to the Ayub Khan era and the UK and US-sponsored Central Treaty Organisation (CENTO) or Baghdad Pact of 1955. However, the surge in the export of mercenaries that Tariq Ali was alluding to was not because of the western sponsorship of such legions but because Pakistan, in 1971, had declared a moratorium on repayment of its foreign debt and had to look for financial aid elsewhere while the IMF would again agree to a loan (which it eventually did). While one cannot confirm the veracity of the claim about the UBL’s venture, the events of the last several months show that somehow the grotesque mediocrity of the Pakistani establishment keeps repeating its antics, as far as the export of the mercenaries goes.

The Arab spring has created unique geopolitical scenarios where old alliances are falling apart — or at least are no longer trustworthy — while new realities are taking shape much to the discontent of regional autocrats. I have repeatedly stated that Barack Obama’s instinct is to side with the democratic movements in the Middle East and North Africa, without intervening directly, even though cliques within his administration have been able to drag him into the Libyan morass. Obama’s handling of Hosni Mubarak’s fall did not go well with Saudi king Abdullah and the bitter exchange between the two, during a phone conversation, is rather well known. The wily Saudi monarch subsequently concluded that if there were to be an uprising in his courtyard, the Americans would not come to his rescue. And unless a smoking gun can be traced to Tehran, Abdullah is right. With Obama getting re-elected — yes I said it — in 2012, the Saudis have chosen to exercise other options that they have heavily invested in, for decades, to protect their courtyard and backyard.

The Saudis know that it is nearly impossible for any political uprising there to physically coalesce, due to the population centres being geographically far apart, to cause direct threat to Riyadh. But they also know that the democratic contagion can spread at the periphery of the Kingdom, with the oil-rich Eastern province slipping out of control quickly or the disquiet at the Yemeni border keeping Riyadh distracted (the latter was tested by both Gamal Nasser and Iran). The Saudi plan, just as in the 1969 bombing of Yemen by Pakistani pilots flying Saudi planes, is to use the trusted Pakistani troops to bolster the defence of not only the Saudi regime but of its client states like Bahrain.

It is not a surprise then that before Saudi Arabia invaded Bahrain on March 13, 2011, the chief of Saudi Land Forces, General Abdul Rahman Murshid visited Pakistan and before that, on March 9, met General Ashfaq Pervez Kayani. Bahrain had already requested and received assurance for military help from Pakistan in late February 2011. In fact, a leading Urdu paper carried an advertisement from the Fauji Foundation Pakistan on February 25 and March 1, seeking men for recruitment to the Bahrain National Guard. The qualifications sought were the following: age 20-25, height of six-feet or taller and military/security service background especially in riot control, which suggest that enrolment was not exactly for the Manama Red Crescent Society.

After the Saudi army brutally crushed the uprising in Bahrain, the Foreign Minister of Bahrain, Sheikh Khalid bin Ahmed al-Khalifa, met with Prime Minister Yousuf Raza Gilani and the State Foreign Minister Hina Rabbani Khar. While the Bahraini media splashed pictures of the handshake between Ms Khar and Sheikh Khalid, announcing Pakistani support to Bahrain, the actual backing had been pledged by the Chief of General Staff, General Khalid Shamim Wayne, whom the Bahraini minster met on March 29.

In her article titled ‘Bahrain or bust?’, Miranda Husain writes: “Chomsky believes Pakistani presence in Bahrain can be seen as part of a US-backed alliance to safeguard western access to the region’s oil …The US has counted on Pakistan to help control the Arab world and safeguard Arab rulers from their own populations… Pakistan was one of the ‘cops on the beat’ that the Nixon administration had in mind when outlining their doctrine for controlling the Arab world.” Ms Husain and the American Baba-e-Socialism (Father of Socialism), Chomsky, conclude with the hope that Pakistan should not meddle in the Middle East.

I believe that Chomsky’s reading of the situation in the Persian Gulf is dead wrong. It is the divergence — not confluence — of US-Saudi-Pakistani interests that is the trigger for potential Pakistani involvement there. The Pakistani brass’ handling of the Raymond Davis affair and now its insistence — through bravado, not subtlety — on redefining the redlines with the US indicates that just like the 1971 situation, an alternative funding source to the IMF has been secured. The Pasha-Panetta meeting has raised more issues than it has solved. Pakistani-Saudi interests are at odds with the US and are confluent with each other.

From the Kerry-Lugar Bill to the Raymond Davis saga, the mullahs have been deployed swiftly to create an impression of public support for the establishment’s designs. Last Friday’s mobilisation of the religious parties in favour of the Saudis is the establishment’s standard drill and will be repeated as needed. The Pakistani deep state apparently has decided to keep selling itself to the oil-rich sheikhs. The domestic policy of coercion and chaos will be continued in foreign lands too.

Courtesy: Daily Times

G. M. Syed

G. M. Syed (January 17, 1904 — April 25, 1995) was a Sindhi nationalist, leftist, revolutionary, writer and a Sufi. G M Syed was the first leader who proposed the bill for Pakistan in Sindh Assembly. Before, it Muslim league had presented resolution in Lahore  and the full council of Muslim League in the leadership of the founder of Pakistan, Muhammad Ali Jinnah had unanimously passed 1940 Lahore Resolution, later known as Pakistan Resolution. The full council of Muslim league granted only three aspects of governance–currency, foreign affairs, and defense related communication–to a future federation and Sindh had joined Pakistan on the condition that the states (provinces) will be ‘independent states’.

Unfortunately, the 1940 resolution was not implemented in letter and in spirit — Sindh, Bengal,  Balochistan and NWFP (Khyber Pakhtunkhwa) — were deprived of all their rights and its people treated as slaves. Due to it, one province of the federation named east Pakistan or Bangladesh has already seceded from Pakistan. However, G. M. Syed became the first political prisoner of Pakistan because of his differences with the leadership of the country.

Continue reading G. M. Syed