After a summer of heavy turbulence in global financial markets, the new season starts with the seemingly endless story of when the Federal Reserve Board will raise interest rates. Although the Fed put off the move in September, the US central bank will up rates eventually, most likely at its next meeting in December. The hike will undoubtedly force some countries to shift monetary policies.
Short-term risks have not dimmed the country’s economic prospects. That may explain why FDI from Asia and Gulf nations is surging.
Arabia is meeting with some success in its efforts to entice foreign investors to six new economic cities in the kingdom.
The Indian government headed by prime minister Narendra Modi is betting big on the reform and revamp of state-run banks over the next four years to support the country’s 8%-plus GDP growth.
FX Reserves | China’s foreign exchange reserves plunged by nearly $94 billion in August, the most ever in a single month, as the People’s Bank of China (PBoC) struggled to support the renminbi after devaluing the currency by 1.9%.