Macroeconomy & Globalization

Chinese president Xi Jinping met with Taiwanese president Ma Ying-jeou on November 7 in Singapore, the first time leaders from the two governments have come together since 1949.

Elections over, Turkey firms up plans to become a financial hub.

In the wake of falling commodities prices, Africa’s largest and oil-rich economies are now in damage-repair mode.

Iceland has recovered smartly from the worst recession in its history. Now it must keep inflation at bay—and that might require a monetary overhaul.

An expanding middle class and strong long-term fundamentals suggest that pessimism over developing nations’ economic prospects may be overdone.

Grassroots anti-corruption movement promises new era of transparency.

Capital Markets | Foreign Exchange Controls
In early November, Chinese Communist Party leaders announced plans to make the renminbi a “freely tradable and usable currency”  by 2020—when the latest five-year development plan is set to finish—according to a statement by the party’s Xinhua News Agency.

In our annual special issue on emerging markets, we take a macro and regional view of the new realities (yes, more than one) that have developed over the past year. There are quite a few surprises.

Central Europe and the Southeast revive, while the CIS struggles with low oil prices and sanctions.

Belgium, the Netherlands and Luxembourg call on old and new strengths to jump-start growth.

Asia’s emerging economies fight to diversify from China and the US.

Canada
The Liberal Party representatives who will form Canada’s next government will field several key cabinet posts. Rookie MP Bill Morneau is taking one of the most coveted—minister of Finance.

According to the OECD, foreign exchange rate reserves are the stocks of foreign currency denominated assets plus gold, held by a central bank. More simply, they are the assets of the central bank held in currencies outside the home country currency.

An analytical exercise that was moderately popular before the financial crisis has become a mandatory task in the post-crisis years.

According to the International Swaps and Derivatives Association (ISDA), a derivative is a risk transfer agreement, the value of which is derived from the value of an underlying asset. More simply, a derivative is a contract between two parties where one party agrees to take on the risk of losses associated with a particular asset—such as a physical commodity or an agreed amount of currency.

Developing countries have long sought a greater voice in running the IMF and World Bank. The rise of rival development banks gives them more options—and more leverage.

Guatemala’s political turmoil, with parties deadlocked in Parliament, a runoff election looming and corruption scandals exploding, means the government will operate in a kind of suspended animation until 2016.

No region of the world has generated an average annual growth rate of 5.5% over the past 20 years—except Africa. In sub-Saharan Africa, GDP has expanded by 40% since 2009.

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.

Emerging nations are replacing the Americas as the continent’s largest trading partners.