UniFocus IAS ( UNIFOCUS UNIVERSAL )

It is a project jointly launched by Bank for International Settlements ( BIS ). Individual  instant payment systems (IPS) like UPI of India need to establish  custom connections for every new country that it wants to connect.  Project NEXUS was initiated to address this issue. Once  instant payment systems (IPS) establishes connection with Nexus Platform, it can reach all   instant payment systems (IPS) connected to Nexus Platform instead of establishing individual custom connection. History of Project: The BIS Innovation Hub commenced the project in 2022.  MOU was signed in this regard in November 2022 between  Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the MAS and the Bank of Thailand.  Brunei Darussalam Central Bank, Bank of the Lao People's Democratic Republic and the State Bank of Vietnam have later joined to this initiative. Business Standard ,  " Project Nexus: enabling instant cross-border payments" - BIS " Project Nexus completes comp

Project Agorá,  launched  by the Bank for International Settlements (BIS), a group of leading central banks and the Institute of International Finance (IIF), is inviting the private sector to join its exploration of how tokenisation can enhance the functioning of wholesale cross-border payments. Project Agorá is a joint public-private initiative of the BIS, Banque de France (representing the Eurosystem), Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England, the Federal Reserve Bank of New York and the IIF as the private sector convener.  The main goal of the project is to explore improving the speed and integrity of cross-border payments within the two-tiered banking system, as well as the functions of commercial bank money (deposits) and central bank money (reserves with central banks) for wholesale transactions.  About BIS: Established  in 1930, the BIS is owned by  63  central banks, representing countries from around the world that together account for

The G20’s Common Framework for Debt Treatments: The G20’s Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI), known as the Common Framework (CF), was launched in November 2020. Its main aim is to strengthen the international debt architecture for the world’s poorest countries. The framework provides a support structure for official creditor coordination to facilitate timely, orderly, and durable debt treatment and to forge the principles of fair burden-sharing across official and private sector creditors. Only three debtor countries have so far requested treatment under the Common Framework (Chad, Zambia, and Ethiopia) and the process for each of these countries has suffered delays. Limited private sector participation has contributed to the delays. The G20’s Debt Service Suspension Initiative (DSSI): The G20’s Debt Service Suspension Initiative (DSSI), launched in April 2020, further illustrates the challenges of private sector participation in i

Relevance: " World Bank, IMF meetings conclude without concrete plan on climate finance " - Business Standard The New Collective Quantified Goal on Climate Finance (NCQG) is a new global climate finance goal that the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) shall set from a floor of USD 100 billion per year, prior to 2025. In 2021, Parties agreed the aim of the NCQG as to contributing to accelerating the achievement of Article 2 of the Paris Agreement of holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The ad hoc work programme was established in 2021 to facilitate technical discussions on the NCQG, running from 2022 to 2024. The CMA will take stock of progress made in 2022 and 2023 and provide further guidance on the work programme. In 2024, the CMA will set the NCQG.  UNFCCC , U

The Global Sovereign Debt Roundtable (GSDR) met today and reviewed progress on the work to improve debt restructuring processes and timelines, and to help address debt vulnerabilities. The objective of the Global Sovereign Debt Roundtable is to build greater common understanding among key stakeholders involved in debt restructurings, and work together on the current shortcomings in debt restructuring processes, both within and outside the Common Framework, and ways to address them. The roundtable is co-chaired by the IMF, World Bank and G20 Presidency (currently Brazil) and comprises official bilateral creditors (both traditional creditors members of the Paris Club and new creditors), private creditors and borrowing countries. "Global Sovereign Debt Roundtable — 2nd Cochairs Progress Report" - IMF "Global Sovereign Debt Roundtable" - IMF

The World Economic Situation and Prospects 2024 is a report produced by the United Nations Department of Economic and Social Affairs (UN DESA), in partnership with  the United Nations Conference on Trade and Development (UNCTAD) and  the five United Nations regional commissions:  the Economic Commission for Africa (ECA),  Economic Commission for Europe (UNECE),  Economic Commission for Latin America and the Caribbean (ECLAC),  Economic and Social Commission for Asia and the Pacific (ESCAP) and  Economic and Social Commission for Western Asia (ESCWA).  The United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) and the United Nations World Tourism Organization (UNWTO) also contributed to the report. Key highlights: Global inflation is projected to decline further, from an estimated 5.7 per cent in 2023 to 3.9 per cent in 2024.  Labour markets of  Developed countries experienced a r

For this classification IMF sighted following reasons: Based on  Foreign exchange intervention  (FXI)  data that the RBI publishes on a monthly basis, IMF concluded that the RBI has been using FXI to cushion the impact of external shocks, smooth market volatility, preclude emergence of disorderly market conditions (DMC), and opportunistically replenish its FX reserves. IMF Further reported that during December 2022-October 2023, the Rupee-U.S. Dollar exchange rate moved within a very narrow range, suggesting that FXI likely exceeded levels necessary to address disorderly market conditions. The observed stability of the exchange rate prompted staff to reclassify India’s de facto exchange rate regime from “floating” to “stabilized arrangement” for that period, while the de jure classification remained “floating” (see Informational Annex) .  Implications: IMF & Currency Manipulation: The new language of Article IV, which went into effect in 1978, said that countries should seek, in th

The International Monetary Fund announced on 13 December 2023, that the  Kingdom of Saudi Arabia  has been selected to Chair the International Monetary and Financial Committee (IMFC). About  International Monetary and Financial Committee (IMFC): The IMFC advises and reports to the IMF Board of Governors on: (1) The supervision and management of the international monetary and financial system, (2) Proposals by the Executive Board to amend the Articles of Agreement (3) Advises on any other matters that may be referred to it by the Board of Governors. Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund. The IMFC usually meets twice a year, at the Bank-Fund Annual and Spring Meetings. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the Fund’s member countries. Each member countr

Where Are the Tax Havens?  There is no precise definition of a tax haven. The OECD initially defined the following features of tax havens: no or low taxes, lack of effective exchange of information, lack of transparency, and no requirement of substantial activity.10 Other lists have been developed in legislative proposals and by researchers. Also, a number of other jurisdictions have been identified as having tax haven characteristics.  Formal Lists of Tax Havens The OECD created an initial list of tax havens in 2000. A similar list was used in S. 396, introduced in the 110th Congress, which would have treated firms incorporated in certain tax havens as domestic companies; the only difference between this list and the OECD list was the exclusion of the U.S. Virgin Islands from the list in S. 396. Legislation introduced in the 111th Congress to address tax haven abuse (S. 506, H.R. 1265) used a different list taken from Internal Revenue Service (IRS) court filings but had many countries

The Executive Board proposes to the Board of Governors a 50 percent quota increase allocated to members in proportion to their current quotas. The quota increase would help safeguard global financial stability by enhancing the IMF’s permanent resources and reducing reliance on borrowed resources. The proposal also includes a call for work to develop, by June 2025, possible approaches as a guide for further quota realignment. Washington, DC:  The Executive Board approved today a proposal to be considered by the Board of Governors to conclude the 16  th  General Review of Quotas (16  th  Review) with a significant increase in quotas. The proposal follows the guidance from the International Monetary and Financial Committee (IMFC) at the 2023 Annual Meetings. The proposal is centered around an increase in quotas of 50 percent, allocated to members in proportion to their current quotas. The quota increase would enhance the IMF’s permanent resources and strengthen the quota-based nature of t

 As per the new circular, Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks. Card issuers shall issue cards across more than one card network. Card issuers shall provide an option to their eligible customers to choose any one among the multiple card networks. This option may be exercised by customers either at the time of issue or at any subsequent time. This circular prohibits banks from making exclusive arrangement with card issuers. Except for RuPay Cards, there is a Merchant Discount Rate ( MDR ) for all other card networks.    MDR is charged to a merchant for the payment processing of debit and credit card transactions. MDR charge is payable by the merchant to his bank ( Acquirer). A portion of this is shared by the acquirer bank with the card issuing bank and the card network operator.   At present there is no MDR on RuPay Debit Card. This circular along with zero MDR is expected

The Decision to provide Duty Free Quota Free (DFQF) access for LDCs was an outcome of the WTO Hong Kong Ministerial Meeting, held in December 2005. This decision as given in Annex F of the Hong Kong Ministerial Declaration inter alia requires all developed-country Members, and developing-country Members declaring themselves in a position to do so, to: (a) Provide duty-free and quota-free market access on a lasting basis, for all products originating from all LDCs by 2008 or no later than the start of the implementation period in a manner that ensures stability, security and predictability; (b) Members facing difficulties should provide market access for at least 97 per cent of products originating from LDCs defined at the tariff line level, by 2008 or no later than the start of the implementation period. In addition, these Members shall take steps to progressively achieve compliance with the obligations set out above, taking into account the impact on other developing countries at simi

  Agreement expected to bring benefits to India like shift of production centres in key goods/critical sectors to India, giving a boost to Aatmanirbhar Bharat and PLI schemes, mobilization of investments. Agreement to also lead to deeper integration of India in the Global Supply and Value Chains especially Indian MSMEs. Negotiations for the Supply Chains (Pillar-II) Agreement were substantially concluded during the second in-person Indo-Pacific Economic Framework (IPEF) Ministerial Meeting held in Detroit on 27 May 2023, hosted by the US. Once implemented, the Supply Chain Agreement is expected to bring in a number of benefits to India and the other IPEF partner countries. Some of the key benefits expected are: potential shift of production centres in key goods/critical sectors to India; bolstering of domestic manufacturing capacities; giving a boost to Aatmanirbhar Bharat and Production Linked Initiatives schemes; mobilization of investments especially in production of key goods, logi

The National Financial Reporting Authority (NFRA) held a meeting to examine the proposals received from the Institute of Chartered Accountants of India (ICAI), as required u/s 133 of the Companies Act, 2013), regarding a new Standard (Ind AS) for accounting of insurance contracts viz. Ind AS 117, here yesterday. The meeting was attended by the Executive Body of NFRA and Part time-members of the Authority from MCA, CAG, ICAI and the accountancy profession. NFRA will share its recommendations to Ministry of Corporate Affairs, after which Ind AS 117 has to be considered and notified by the Central Government under Companies (Indian Accounting Standards) Rules 2015. When notified, it will replace currently notified Ind AS 104,  Insurance Contracts . IFRS 17 ( IFRS stands for  International Financial Reporting Standard  ) , originally issued by the International Accounting Standards Board (IASB), in May 2017, is a complete overhaul of the accounting for the Insurance Industry. Globally, it

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11, is a trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. The eleven signatories have combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, making the CPTPP one of the world's largest free-trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European single market, and the Regional Comprehensive Economic Partnership. The TPP had been signed on 4 February 2016 but never entered into force, as the U.S. withdrew from the agreement soon after the election of president Donald Trump. All other TPP signatories agreed in May 2017 to revive the agreement, with Shinzo Abe's administration in Japan widel

  March 31, 2023 The IMF Board approved a new 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 11.6 billion (about US$15.6 billion) as part of a US$115 billion total support package for Ukraine. Ukraine’s EFF-supported program aims to anchor policies that sustain fiscal, external, price and financial stability and support economic recovery, while enhancing governance and strengthening institutions to promote long-term growth in the context of post-war reconstruction and Ukraine’s path to EU accession. The approval of the EFF is expected to mobilize large-scale concessional financing from Ukraine’s international donors and partners, to help resolve Ukraine’s balance of payments problem, attain medium-term external viability, and restore debt sustainability on a forward-looking basis in both a baseline and downside scenario. Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved today a 48‑month extended arrangement under the Exte

An Inter-Ministerial delegation from India led by Department of Commerce   participated in the second Indo-Pacific Economic Framework for Prosperity (IPEF) negotiating round in Bali, Indonesia from March 13-19, 2023. Negotiators from 13 other countries, including, the United States, Australia, Brunei Darussalam, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam also participated in the Bali negotiating round. During the Bali Round, discussions covered all the four pillars of the IPEF: Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Taxation & Anticorruption) - (Pillar IV). India participated in the discussions related to Pillars II to IV.  Previous Article: <<< About Indo-Pacific Economic Framework for Prosperity (IPEF)   Reference: PIB >>>

The IMF Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF) of SDR 2.286 billion (about US$3 billion) to support Sri Lanka’s economic policies and reforms. The objectives of the EFF-supported program are to restore macroeconomic stability and debt sustainability, safeguarding financial stability, and stepping up structural reforms to unlock Sri Lanka’s growth potential. All program measures are mindful of the need to protect the most vulnerable and improving governance. The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners. IMF

The Reserve Bank of India and the Central Bank of the United Arab Emirates signed a Memorandum of Understanding in Abu Dhabi on Wednesday to promote innovation in financial products and services. As per the MoU, both central banks will work together to explore Central Bank Digital Currencies and investigate interoperability between the CBDCs of CBUAE and RBI. They will conduct proof-of-concept  and pilot tests of bilateral CBDC bridge to facilitate cross-border transactions of remittances and trade. This collaboration is expected to increase efficiency and reduce costs in cross-border transactions, furthering the economic ties between India and UAE.The MoU also includes technical collaboration and knowledge sharing on matters related to Fintech and financial products and services.  This collaboration will help both central banks enhance their capabilities and contribute to the development of a robust financial ecosystem.The collaboration between RBI and CBUAE is a significant step towa

  India hosted the special negotiating round for the Indo-Pacific Economic Framework for Prosperity (IPEF) in New Delhi, India, from February 8-11, 2023.  The round covered IPEF Pillars II (Supply Chains), III (Clean Economy), and IV (Fair Economy).   About Indo-Pacific Economic Framework (IPEF): In May 2022, the United States launched the Indo-Pacific Economic Framework for Prosperity (IPEF) with Australia, Brunei Darussalam, Fiji India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam. This framework will advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies. Through this initiative, the IPEF partners aim to contribute to cooperation, stability, prosperity, development, and peace within the region.  This framework will offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and con