MONEY MASTER

In the past, the US Federal Reserve (Fed) had a dominant influence on global monetary policy, but today, central banks across the world are taking divergent paths. The post-pandemic global economy has become fragmented, with inflation, growth, and monetary policies varying widely between major economies. This shift signals a decline in America's economic influence on the global stage. While the Fed has been slow in reacting to inflation and rate adjustments, other central banks, like those in Europe and China , are acting independently. For instance, the European Central Bank and Bank of England started lowering rates ahead of the Fed, while China and Japan are pursuing different economic strategies focused on stimulating growth or managing inflation. The yen’s volatility highlights the consequences of these divergent paths. The yen surged and fell dramatically throughout the year as the Bank of Japan and the Fed made different monetary moves. This currency volatility has...

The World Bank is grappling with the difficult task of raising a record-breaking amount of funds to aid the world's poorest nations, according to Akihiko Nishio , vice-president of development finance. Several factors, including the strong US dollar and increasing funding demands from donors, are creating obstacles in meeting the bank's ambitious goals. The appreciation of the US dollar has impacted donations, with currencies in many donor countries depreciating. As a result, some European nations may need to increase their contributions by 20% just to maintain inflation-adjusted donation levels. Additionally, donor funds are being stretched thin due to aid for Ukraine , support for refugees, and rising global food prices . World Bank President Ajay Banga set the target of raising a record amount of donations for the International Development Association (IDA) , the bank’s unit responsible for providing low-interest loans and grants to the world’s 75 poorest countries ....

The 26 poorest countries in the world, which are home to 40% of the most poverty-stricken people , are now in more debt than at any time since 2006, and are increasingly vulnerable to natural disasters and other economic shocks, according to a new World Bank report released on Sunday. The report highlights that these economies are poorer today than they were before the Covid-19 pandemic , even as the rest of the world has largely recovered. This represents a significant setback in global efforts to eradicate extreme poverty . The study, released ahead of the World Bank and International Monetary Fund (IMF) annual meetings in Washington, emphasizes the World Bank’s efforts to raise US$100 billion to replenish the International Development Association (IDA) , which provides financing to the world’s poorest countries. The 26 nations in the study, with annual per-capita incomes below US$1,145 , rely heavily on IDA grants and low-interest loans as access to market financing has dim...

The World Bank launched its revamped "Business Ready" report on Thursday, assessing the business and investment climate of 50 economies. Singapore, Hungary, and Estonia took top positions in key categories, marking the return of a major World Bank business survey since the "Doing Business" rankings were scrapped in 2021. The new survey evaluates a country's business environment across three major areas: regulatory quality , public service effectiveness (such as electricity and tax administration), and operational efficiency . The report moves away from ranking countries, instead using business readiness scores to provide a clearer picture of how prepared a country is for investment. Singapore scored the highest in operational efficiency , with a score of 87.33% , followed by Georgia, Rwanda, and Estonia . Hungary led in regulatory framework , achieving 78.23% , followed by Portugal, Georgia, and the Slovak Republic . Estonia topped the public services ...

The International Finance Corporation (IFC) , the private investment arm of the World Bank , achieved a record $56 billion in investments during its financial year ending June 2024, marking a 28% year-on-year increase, according to managing director Makhtar Diop . This surge in commitments, which includes both short- and long-term financing as well as mobilized funding , reflects the impact of internal reforms spearheaded by World Bank president Ajay Banga to accelerate lending across the organization. Diop attributed the growth to streamlined processes and the decentralization of decision-making, allowing directors in local regions more autonomy in fund deployment. These efforts aim to spur economic growth and reduce poverty in developing countries , aligning with the IFC's broader mission. Looking ahead to FY2025, the IFC is targeting $62 billion in investments, with a particular focus on infrastructure , especially in roads and transportation , and supporting sub-sovereign...