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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    CHINA HALTS DOLLAR DEALS - LET THE CURRENCY WARS BEGIN

    Neno
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    CHINA HALTS DOLLAR DEALS - LET THE CURRENCY WARS BEGIN Empty CHINA HALTS DOLLAR DEALS - LET THE CURRENCY WARS BEGIN

    Post by Neno Thu 22 May 2014, 4:29 pm

    THE ARTICLE DOESN'T SAY SO, THE THE TITLE SAYS IT ALL-CHINA HALTS DOLLAR DEALS - LET THE CURRENCY WARS BEGIN -

    Exclusive - Afghanistan suffers trade blow as China halts dollar deals with its banks
    By Jessica Donati
    KABUL Fri May 23, 2014 12:01am IST








    KABUL (Reuters) - Chinese banks have halted dollar transactions with most Afghan commercial banks, the central bank governor said on Thursday, making it difficult for businesses to pay for imports from one of Afghanistan's biggest trading partners.

    "China is a major country that was handling those banktransfers, and now they have told the banks they can't do it,"governor Noorullah Delawari told Reuters.

    The impact on business had been felt immediately, he said.

    Despite intense pressure from Western backers, Afghanistan has so far failed to pass laws meeting global standards against money laundering and terrorist financing.

    That has prompted banks from various countries to halt trade with its commercial banks.

    The Chinese move was part of a trend that was making it increasingly difficult for the banks to execute international transactions, Delawari said.

    "Some of our banks cannot do any direct transactions" because their correspondent banks in the United States, Europe, Germany or Turkey had halted dealings, he said. "Now even transferring money to China to import goods has been affected."

    The Afghan government's failure to pass key measures means that it could in June be blacklisted by the Financial Action Task Force (FATF), an international body that sets standards on how countries combat money laundering.

    Banks have been struggling since FATF threatened Afganistan with the punishment early this year.

    "That has been affecting our banks' ability to transfer money for anything," Delawari said, describing for example how students abroad were unable to receive money from their parents.

    Chinese banks and officials were not immediately available for comment.

    TIME PRESSURE

    Time is running out before the FATF decision in June. The draft legislation recently submitted to parliament, in its current form, will not save Afghanistan from the blacklist even if it is passed in time.

    The governor said this was because certain provisions included in the central bank's original draft had been removed without its knowledge by the Ministry of Justice.

    "They made some changes to the law without discussing it with us," Delawari said.

    The governor said emergency meetings were being held with members of parliament and other officials to get the provisions written back into the draft before it was passed to the upper house for approval.

    It was unclear why the law had been changed without the bank's knowledge.

    "Frankly, no one wants to talk about it. Very sensitive issue," said a financial sector official, speaking on the condition of anonymity because he is not authorised to talk to the media.

    The impact of being added to the blacklist would be "devastating", he added.

    In the meantime, the central bank is hoping to convince FATF to delay its decision because Afghanistan's presidential elections are under way.

    Afghans will head to the polls on June 14 for a second round of voting after no candidate won an absolute majority in the first round on April 5.

    "It would be unfair to have the new government deal with the major problems caused by the blacklist. So we are hoping this process will be extended," Delawari said, adding that this was a long shot.

    "The blacklist will cause serious problems that would affect our banks' ability to transfer money in and out of the country. We want to avoid that."



    (Reporting by Jessica Donati, Editing by Maria Golovnina and Mark Trevelyan)

      Current date/time is Sun 03 Mar 2024, 8:02 pm