Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured
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Updated 07 December 2021

Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured

AL-MUKALLA: The Yemeni rial recovered on Tuesday by roughly 30 percent hours after the Yemeni president reshuffled the country’s central bank board in a bid to rein in the rapid currency devaluation. 

Local moneychangers told Arab News that the Yemeni rial began bouncing back on Monday night when President Abed Rabbo Mansour Hadi dismissed the governor of the Aden-based central bank and his deputy. 

By Tuesday morning, the Yemeni currency rose from 1,700 to 1,100 against the dollar before dropping again to 1,250 in the afternoon. 

The rial has rapidly tumbled during the past couple of weeks, reaching a historic record low of 1,750 this week, compared to 215 in early 2015. 

Yemen’s president appointed Ahmed bin Ahmed Ghaleb as the new governor and head of the central bank’s administrative board. Mohammed Omer Banaja was appointed his deputy. 

The official news agency reported that the president authorized the Central Agency for Control and Accountability to monitor the bank’s current and previous financial activities. 

Four previous central bank chiefs, all appointed Hadi, failed to prevent the rial’s plunge despite their expertise and strong educational backgrounds.

The central bank had closed dozens of exchange firms and shops that violated the bank’s monetary rules and were involved in speculative activities on foreign currency. The central bank also ordered banks in the Houthi-controlled areas to move offices and operations to Aden, or face punitive measures and provided fuel and food importers with dollars. The rial continued losing value against the dollar, as several blacklisted firms and banks continued operations  in the Houthi-controlled Sanaa.

Mustafa Nasr, director of the Economic Media Center, has urged local and international support to the bank’s new administration to succeed in putting into place economic policies and also demanded resuming the flow of oil and gas exports and reviving money-generating state bodies. “

Richard Oppenheim, British ambassador to Yemen, said the reshuffle of the bank’s administrative board would help the Yemeni government carry out vital reforms to steady the economy.


Singapore suspends crypto ATMs despite investor appetite: Crypto Moves

Singapore suspends crypto ATMs despite investor appetite: Crypto Moves
Image: Shutterstock
Updated 15 sec ago

Singapore suspends crypto ATMs despite investor appetite: Crypto Moves

Singapore suspends crypto ATMs despite investor appetite: Crypto Moves

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Wednesday, falling by 0.46 percent to $41,515 at 12:07 p.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $3,074, down by 2.60 percent, according to data from Coindesk.

Other News:

To curb Singapore's growing appetite for digital tokens, crypto ATMs are shutting down, as the city-state moves to significantly reduce consumer marketing of cryptocurrencies.

Daenerys & Co, the largest machine operator in Singapore has suspended its services to comply with the Monetary Authority of Singapore’s request, the company said on Tuesday.

Another company, Deodi Pte, shut down its sole machine on Tuesday, the company said on its website.

“The Monetary Authority of Singapore's new guidelines regarding ATMs were an unexpected surprise,” Daenerys said in a reply to questions from Bloomberg.

The machines, which are mostly located in malls across Singapore, provide people with a convenient way to buy cryptocurrencies such as Bitcoin and Ether using fiat currencies, Bloomberg reported.

However, the notion of a fast and easy way into crypto trading for retail investors didn’t sit well with regulators, who explicitly mentioned the ATMs in guidelines released Monday.

Such offerings could encourage people to trade on impulse, the MAS said.

Meanwhile, Crypto.com said it has suspended all deposits and withdrawals while it investigates unauthorized activity on some accounts, according to Bloomberg.

The crypto wallet provider and trading platform said in a Twitter post that the measure was temporary to allow it to improve security and it would resume activity once the update was complete. The company added that all funds are safe.

Several users on social media have reported that their cryptocurrencies, sometimes worth tens of thousands of dollars, had disappeared from their Crypto.com accounts in recent days.

Technical issues on crypto trading platforms have become commonplace as the hype surrounding digital assets grows.

Providers such as Coinbase, Binance and Kraken have all suffered widespread outages at times of peak demand in the last year, causing trouble for investors who were prevented from making withdrawals or liquidating their positions amid volatile trading periods.

 


South Korea's LG Energy's $10.8bn IPO draws record demand from retail investors

South Korea's LG Energy's $10.8bn IPO draws record demand from retail investors
Image: Shutterstock
Updated 9 min 16 sec ago

South Korea's LG Energy's $10.8bn IPO draws record demand from retail investors

South Korea's LG Energy's $10.8bn IPO draws record demand from retail investors

South Korean battery maker LG Energy Solution has set a new record for IPO demand with retail investors bidding for shares worth about 114 trillion won ($95.62 billion),adding to the frenzy for a piece of the biggest public offering in the country.


As a result of the strong demand, the retail portion of LGES initial public offering was oversubscribed nearly 70 times and attracted about 4.4 million subscription accounts at the end of the two-day bidding period on Wednesday, according to KB Securities, one of the main bookrunners on the LGES deal.


LGES' retail bidding volume beats the previous record of battery material maker SK IE Technology Co Ltd's, which drew 81 trillion won in public subscription last year.


Last week, the company priced the offering at top of the indicative marketing range to raise $10.8 billion, making it South Korea's biggest and Asia's third-largest IPO.


"We will continue to put efforts to complete the listing process," LGES said in a statement.


LGES continues the trend of robust demand for IPOs from South Korean retail investors - known as "Ants" as government stimulus efforts to bolster the economy after the coronavirus crisis have flooded markets with cash.


World needs to invest $3trn-plus in renewables in 10 years: UAE minister

World needs to invest $3trn-plus in renewables in 10 years: UAE minister
Image: Shutterstock
Updated 20 min 6 sec ago

World needs to invest $3trn-plus in renewables in 10 years: UAE minister

World needs to invest $3trn-plus in renewables in 10 years: UAE minister

The world needs to invest at least $3 trillion in renewable energy in the next 10 years, state news agency WAM quoted United Arab Emirates (UAE) Industry Minister Sultan al-Jaber as saying on Tuesday in Dubai.

The minister, who is also the Abu Dhabi National Oil Company (ADNOC) chief executive, added that the UAE remains committed to providing reliable supplies of oil and gas with less carbon emissions.

The minister was attending a session at Abu Dhabi Sustainability Week Summit at the Expo 2020 site in Dubai.


France sees fourfold jump in rooftop solar installations: NRG matters

France sees fourfold jump in rooftop solar installations: NRG matters
Updated 4 min 51 sec ago

France sees fourfold jump in rooftop solar installations: NRG matters

France sees fourfold jump in rooftop solar installations: NRG matters

RIYADH: As Europe continues to fight soaring energy costs and pursue transition to cleaner fuel sources, countries such as China are either curbing electricity shortages or investing in green energy.

Looking at the bigger picture:

  • European power costs for February are forecast to decline as favorable weather conditions are set to boost renewable energy output via wind power generation, Bloomberg reported. This fall in power prices is expected to ease the pain of rallying energy prices on households and small businesses across the continent.
  • France recorded a fourfold increase in new rooftop solar installations last year as demand for solar panels and extra insulation in Europe surged. The drive has been sparked by people attempting to curb soaring energy bills, Bloomberg reported, citing Rystad, an energy research and business intelligence firm.
  • Additionally, governments of EU members such as Italy and Spain dedicated $13.7 billion and $3.9 billion respectively to enhance energy efficiency in households up until 2026, Bloomberg reported, citing figures from the Bruegel think tank.
  • China’s record coal spree, which pushed annual production in 2021 to over four billion tons, is capable of averting energy supply crisis and electricity shortages, according to Bloomberg. This comes as the country has secured enough fuel supply to cater to local needs.

Through a micro lens:

  • Chinese state-owned power firm China Three Gorges Corporation is set to spend $6.5 billion on three off-shore wind farms in the Guangdong province amid a scheme to diversify its portfolio, the Financial Times reported. While the hydropower giant has a current capacity to generate up to 26 gigawatts of electricity from solar panels and wind turbines, it aims to push this figure to 70 or 80 gigawatts by 2025, according to Bloomberg.
  • Belgium based metal supplier Eurometaux has turned to EU policymakers for help as it seeks the support of member states in boosting local productions of aluminium, zinc, and silicon amid energy transition efforts, Reuters reported. This comes in line with the Union’s 2050 net zero plans which include electric vehicles requiring aluminum as well as renewable energy that call for zinc and silicon.

Australia’s consumers’ sentiment drops slightly despite omicron worries

Australia’s consumers’ sentiment drops slightly despite omicron worries
Updated 39 min 32 sec ago

Australia’s consumers’ sentiment drops slightly despite omicron worries

Australia’s consumers’ sentiment drops slightly despite omicron worries

Australian consumers appear to have fewer concerns over the omicron variant compared to other COVID-19 strains, according to a recent report by an Australian bank.

Australia’s Westpac-Melbourne Institute Index of Consumer Sentiment went down by only 2 percent in January, in what was deemed as a “surprisingly solid” result.

The delta variant prompted a higher 5.2 percent drop during the first month of its spread. 

The latest result was also much lower than the 17.7 percent slump experienced when the pandemic started, according to a report by Westpac.

The January decline in the index was attributed to worries about the economy and family finance’s outlook for the next 12 months, which decreased by 9.6 percent and 2.8 percent, respectively.

This is despite a noticeable improvement in actual family finances relative to a year ago, with its sub-index rising by 7.5 percent in January, the bank said.

Looking at the state breakdown, the data showed that Queensland, Western Australia and South Australia all faced worsening sentiment. On the other hand, confidence brightened in New South Wales and Victoria.

The report added that consumers who lived in states that were previously affected by the delta variant lockdowns were less worried about the omicron outbreak when compared to citizens of states who are facing their first major wave of the pandemic.