CDB hosts conference on Chinese Renminbi in the Caribbean

As global financial institutions continue to withdraw banking services from the Region, the Chinese Renminbi could help to safeguard the Region’s access to global financial services. This was one of the topics explored at a conference hosted by Caribbean Development Bank (CDB), held under the theme ‘Chinese Renminbi in the Caribbean: Opportunities for Trade, Aid and Investment’.

“The conference comes at a time when the ability of many Caribbean countries to engage in international trade and financial services is being undermined by the withdrawal of correspondent banking services by North American and European financial institutions. An urgent resolution of the dilemma is required,” said President of the Caribbean Development Bank (CDB), Dr. Wm. Warren Smith.

Smith also highlighted the partnership between China and the Caribbean, which has been growing in recent decades.

“China has itself been successfully undergoing major economic transformation built on the win-win strategy of opening-up for common prosperity.  It is that strategy that helps to explain the strengthening of China-Caribbean diplomatic ties and our increasing engagement in the areas of investment, contracted projects, and bilateral trade over the past two to three decades. One of the spin-off benefits of the transformation taking place in China is the rapid internationalisation of the Renminbi, starting in 2006 with the floating of the exchange rate,” he said.

The conference also explored the opportunities for deepening trade between China and the Caribbean and how greater use of the Renminbi, which is now an International Monetary Fund (IMF) reserve currency, could facilitate greater foreign direct investment from China into the Caribbean. As an IMF reserve currency, the Renminbi is now in the IMF's special drawing rights (SDR) basket, which determines currencies that countries can receive as part of IMF loans.  The other currencies in the basket are the U.S. dollar, the euro, the yen and British pound

Ambassador of the People’s Republic of China to Barbados, H.E. Wang Ke, said China is continuing to build economic and diplomatic partnerships in the Caribbean, noting that the country welcomes further cooperation efforts.

“In the wake of the 2008 financial crisis many Caribbean countries have struggled with bottlenecks such as having indebtedness, difficult access to finance and insufficient connectivity, and with addition of rising global protectionism and uncertainties between the Caribbean and its traditional partners, the Caribbean countries are facing more challenges in achieving sustainable growth. China is working on building new international relations based on cooperation and mutual benefit and stands ready to strengthen global cooperation with the Caribbean countries.”

The conference was held at the Hilton Resort Barbados on July 10, 2017. Topics discussed included deepening investment cooperation between China and the Caribbean, and how the use of the Renminbi could enhance trade facilitation, finance, banking relationships, and tourism. The agenda included presentations by, and panel discussions featuring, thought leaders and experts from the Caribbean and China.  Approximately 100 participants from regional public and private institutions, including commercial banks and government ministries, attended.

China has been a member of CDB since 1998.

by RTC Director

Air Zimbabwe lays off half its workforce amid financial woes

Zimbabwe's state-owned airline has laid off 200 workers, roughly half of its staff, with immediate effect.

The job losses are part of a turnaround strategy to bring struggling Air Zimbabwe back to profitability from a $300m (£230m) debt.

Last month the EU banned it from using its airspace, citing safety concerns.

There have been major changes at the national airline since President Robert Mugabe's son-in-law took over as chief operating officer last year.

"We were overstaffed by a lot and we are also trying to weed out people without the right qualifications," the airline's chairwoman Chipo Dyanda said on Wednesday.

"The retrenchment is meant to give space to the airline so that we can redeploy the money saved back into the company."

An Air Zimbabwe spokesperson told state media that management has also been trimmed from 28 to just 12 and the finance department from 36 to 17.

The airline has struggled to keep afloat over the last decade and plans to carry out a restructuring exercise that will include retraining for all staff, including top management.

Unconfirmed reports say that a name change is also in the pipeline - a move many believe is an attempt to ring-fence the airline's debt and reduce the threat of creditors seizing the planes.

Source-BBC

by RTC Director