North America:
- The United States (US) released US$3.5 billion (S$5 billion) of Afghanistan’s central bank reserves last Tuesday (Sept 20). However, this sparked fear that this huge sum will go directly into the pockets of the Taliban rather than humanitarian aid. After months of deciding how to disburse a portion of the funds belonging to the former Afghan government that had been frozen by the US government when the Taliban took over, the US have decided to set up the Afghan Fund at the Bank for International Settlements. The Afghan Fund would help direct efforts to kick-start the economy before winter when it will exacerbate the high levels of hunger and poverty. The money in the Afghan Fund will help pay off Afghanistan’s debts and bills while keeping the economy afloat. Critics believe that by establishing the Afghan Fund, the Taliban would be relieved of the responsibility of managing the economy suffering.
- 470,000 were left without power after Hurricane Fiona hit Canada last Sunday (Sept 25). Described as the “worst ever seen in the province” in Prince Edward Island, no death associated with the storm had been reported. Prime Minister Justin Trudeau has since said that the military will be deployed to provide assistance in the typhoon’s aftermath.
- Landslides in El Salvador killed at least seven last Thursday (Sept 22), after heavy rains had triggered them. The landslide had buried a house in the municipality of Huizicar and killed the family that was in it. The rains had been one in a string of extreme weather events in the region.
- El Salvador bought US$565 million (S$808 million) worth of bonds in an attempt to dispel rumours of a possible debt default last Thursday (Sept 22). They had bought 54 per cent of bonds maturing in 2025 and 22.4 per cent maturing in 2023. Fitch Ratings, a credit rating agency, had reported that this does not change their downgrade of the long-term foreign currency issuer default rating from CCC to CC.
- Mexico president Andres Manuel Lopez reached an agreement with producers last Friday (Sept 23) to maintain prices on basic food items amid rising inflation. The items consisted of corn, chicken, eggs, and beef. Without naming specific firms, he had said that 20 companies will take part in the talks and 24 items will be targeted. Inflation is currently at a 22-year high at 8.76 per cent.
South America:
- Colombian President Gustav Petro proposed spending 60 trillion Pesos (S$19.5 billion) on land to redistribute to farmers last Friday (Sept 23). This plan comes as indigenous citizens, misinterpreting his campaign promises, took matters into their own hands and occupied land. At the same time, the Autonomous Fiscal Rule Committee warned that the country’s finances are stretched and they should decrease public spending and focus on debt. 60 trillion Pesos represents 5 per cent of Colombia’s Gross Domestic Product (GDP).
- Brazil’s central bank decides not to raise interest rates, they announced on Thursday (Sept 22). The interest rate now stands at 13.75 per cent, following 12 rate hikes. Annual inflation in Brazil in August now rests at 8.73 per cent down from 10.07 per cent in July.
- Brazil President Jair Bolsonaro’s administration approved the auction process rules for the privatisation of the Santos Port, South America’s largest port, on Wednesday (Sept 21). The minimum fee for the tender is 3.02 billion Reals (S$819 million) with a validity period of 35 years and an option to extend for five more.
- The United Nations (UN) released a report alleging that Venezuelan security forces under Nicolás Maduro’s government that committing crimes against humanity last Tuesday (Sept 20). The report claims to have personally ordered arbitrary arrests and torture. These discoveries come at a time when Maduro is fighting against diplomatic isolation as the global energy crunch looks to give him an out. The UN opened an official investigation in November 2021.
- Ecuador reached a deal with China last Tuesday (Sept 20) to restructure debts with banks in China. The agreement furnishes relief of US$1.4 billion (S$2 billion) and US$1.8 billion (S$2.57 billion) for the China Development Bank and Export-Import Bank of China respectively. Ecuador President Guillermo Lasso announced in February to restructure debt with Beijing.
- Argentina and the International Monetary Fund (IMF) agreed on debt relief of US$3.9 billion (S$5.58 billion) last Tuesday (Sept 20). This had been the result of the Argentinean government’s fulfilment of quantitative program targets in the second quarter, in which most were met. The debt relief is subject to the approval of the IMF Executive Board, expected to meet in the following weeks.
Asia Pacific:
- Japan started to intervene to support the Yen last Thursday (Sept 22) for the first time since 1998. The value of the yen has declined about 20 per cent against the US dollar. The Bank of Japan has insisted on holding its negative-rate policy even as the Federal Reserve has hiked aggressively. The currency intervention is quite an extraordinary move for a country that has been long criticised by trading partners for tolerating weak currency to benefit its exporters.
- Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi had met last Friday (Sept 23) in New York to contain the rising tensions in Taiwan. Talks between the Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi had met. Tensions rose when House Speaker Nancy Pelosi visited Taiwan in August this year which infuriated Beijing as it was seen as a trial run for an invasion of the self-governing democracy. The US will continue to stand with Taiwan and will intervene militarily if China decides to use force in Taiwan. Wang reiterated his anger over US support for Taiwan, which is considered part of China’s territory.
- Malaysia’s Foreign Minister Saifuddin Abdullah pushed ASEAN to review the five-point peace plan for Myanmar last Monday (Sept 19). The five-point peace plan was a peace commitment that was made by Myanmar junta chief Min Aung Hlaing and the leaders of ASEAN. The five-point peace plan includes that all violence in Myanmar be halted immediately, parties should engage in constructive dialogue to seek peaceful solutions, allow a special envoy from ASEAN to facilitate mediation of the dialogue, ASEAN provides humanitarian assistance and the special envoy and delegation will get to visit Myanmar to meet all the parties concerned. Despite the peace plan, it has been ineffective in stopping the atrocities that have been happening in Myanmar.
- South Korean President Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida had their first-ever bilateral summit last Wednesday (Sept 21). Both parties agreed on the need to improve relations dogged by historical disputes. Yoon has been seeking to improve relations with Japan as their relations have been plagued by disputes stemming from Japan’s 1910-1945 colonisation of the Korean peninsula. Additionally, both parties are faced with an increasing threat from North Korea’s possession of nuclear weapons. This increases the need and importance for strategic cooperation between Japan and Korea.
- South Korea says that North Korea had blasted ballistic missiles toward the sea on Sunday (Sept 25). This follows back-and-forths between the two nations, the latest of which involved US aircraft in joint exercises with South Korea. The missile had reportedly landed off North Korea’s eastern coast.
Europe:
- Mandatory voting started last Friday (Sept 23) for the referendum that allows Russia to justify the annexation of four regions. These four regions include Luhansk, Donetsk, Kherson and Zaporizhzhia provinces which represent about 15 per cent of Ukraine. Russia currently does not have full control over the four regions, with about 60 per cent of the Donetsk region under Russia’s control. If the referendum goes through, Ukraine would lose about 15 per cent of their total area which is roughly the size of Hungary or Portugal. Including Crimea and the four regions, Russia would gain an area that is the size of the US state of Pennsylvania. However, the West condemns this referendum and sees it as illegitimate and illegal.
- German Chancellor Olaf Scholz is reportedly “annoyed” by Turkey’s attempt to join the Shanghai Cooperation Organisation, he expressed last Tuesday (Sept 20). Turkish President Tayyip Erdogan was targeting for membership of the SCO for Turkey while being a member of the North Atlantic Treaty Organisation (NATO). The SCO aims to have deeper economic and political cooperation among the member countries like China, Kazakhstan, Russia, Kyrgyzstan, Tajikistan, India and Pakistan. Scholz believes that the SCO would not be a dominant player in contributing to a good global coexistence.
- British Prime Minister Liz Truss promised increased financial support for Ukraine in 2023 last Wednesday (Sept 21). Truss pledged to meet or exceed in 2023 the $2.3 billion pounds (S$3.69 billion) of military aid spent on Ukraine in 2022. She vowed to help end Europe’s dependence on Moscow for energy because Western powers have been dependent on Russia for oil and gas, providing Russia with leverage.
- Giorgia Meloni became Italy’s first female prime minister last Sunday (Sept 25). Her victory is historic not just because of her gender but because she leads a party that is further to the right than other political movements Italy has seen since the days of its former fascist leader, Benito Mussolini. She aims to curb immigration and sees that traditional values are being undermined and attacked because of globalisation. She believes that societies should not be based on individual rights guaranteed by European law but on sovereign authoritarianism. Meloni’s moral and economic inspiration is Viktor Orbán, who destroyed the opposition in Hungary and achieved legitimacy by weaponizing popular consensus. Europe grows concerned as Meloni could present a danger to the democratic balance in Europe.
- France President Emmanuel Macron pledged a “massive acceleration” of renewable energy last Thursday (Sept 22). He had outlined a plan to increase the adoption of wind and solar farms, bringing its policies closer to its European neighbours. A bill is lined up to be presented at the next cabinet meeting.
Middle East:
- Israel appoints ambassador to Turkey for the first time since 2018, the Israel foreign ministry announced last Monday (Sept 19). Irit Lillian, the diplomat appointed, who has been in charge of the Israeli embassy in Turkey since 2020, will be the ambassador. Turkey had, in 2018, withdrawn its ambassador from Israel after Israel had killed dozens of Palestinians in Gaza border protests.
- As protests over the death of Mahsa Amini in police custody flared, Iran restricted access to various social media platforms last Wednesday (Sept 22). Amini had been arrested last week by morality police for “unsuitable attire”. The US has since issued a licence to lessen sanctions on Iran’s internet services in an effort to “support the free flow of information”. At least 41 people have been killed as the government clamps down on protests.
- Lebanon banks shutter indefinitely after a spate of heists last Wednesday (Sept 22). Eight banks were reportedly held up last week as customers had sought to access their own deposits. Customers are still allowed to access money from Automated Teller Machines (ATMs) in the local currency. Rules have been in place since 2019, the start of their economic meltdown, to prevent people from accessing money in the Dollar.
- Egypt freed the Al-Jazeera journalist Ahmed al-Najdi last Monday (Sept 19) after he had been detained without trial for two years. Al-Nadji had said that while in detention, he was denied healthcare, which exacerbated his diabetes, hypertension, and other chronic conditions. He had said that he had only appeared in court three times during his stay in prison without being given the chance to make statements. Two other Al-Jazeera journalists still remain in custody, allegedly because of “membership of a banned group” and “spreading false information”.
- A joint investigation by English and Palestinian rights groups has alleged that journalist Shireen Abu Akleh’s killing in Israel was deliberate last Tuesday (Sept 20). Abu Akleh, who had been a household name in Palestine, had been shot in the head earlier in the year (May 22) while reporting on a raid in an occupied West Bank refugee camp. The report noted the sniper’s angle of fire and concluded that the shooter had enough information to fire the shot.
Africa:
- South Africa signed renewable energy deals last Thursday (Sept 23), as outages continue. Coal currently generates 80 per cent of electricity in the country but energy output will increase through investment in wind and solar projects that are slated to come online by 2024. The state energy firm, Eskom, is now unable to pay for upkeep amid allegations of corruption and lessened investment.
- East African countries were left on alert as Uganda declared an outbreak of the Ebola virus on Thursday (Sept 22). Uganda has declared seven cases and one death. Tanzania has placed surveillance teams at key chokepoints like borderlines and airports. Kenya has also increased surveillance and vigilance. Somalia’s health ministry has announced an increased partnership with the Ministry of Transport and Aviation, along with collaboration with the World Health Organisation (WHO).
- Zambia President Hakainde Hichilema announced last Thursday (Sept 22) a reform of an “insult law” which criminalises insulting the president. After being elected last year and despite campaigning on removing the law, he has been slow to do so. He said “[t]hat law is one of those that we’ve isolated that has to be reformed and is going through due process. Before it is reformed, it is a law and it will apply.”
- Mozambique and Tanzania signed defence cooperation agreements last Thursday (Sept 22) focused on fighting against terrorism and crime. Mozambique is currently engaged with Islamist militants in the gas-rich region of Cabo Delgado. The countries had also discussed security, along with the need to leverage hydrocarbons like coal and gas.
- Eritrea began a new military operation in the Tigray region, Ethiopia, last Wednesday (Sept 21), as the Ethiopian civil war rages on. This marks the first significant conflict as the sides had signed a five-month truce just last month. Eritrea had reportedly intervened on the side of the Ethiopian military. Heavy restrictions are enforced on the border and neutral parties cannot get clarity of the situation in the region.
