In the latest edition of its semiannual report on Latin America and the Caribbean, “Renewing with Growth”, The World Bank investigates whether technological disruption could boost productivity. The report examines two disruptions: the pandemic-induced escalation of digitization and potential for more competition in the electricity sector.
Crises inspire metamorphic change, and that’s happening in banking as we trudge through a pandemic. Can banks do more than boost their digital transformations—and bottom lines? Can they be the foundation of building back better? It starts in the community, providing services to everyone, without regard to race, gender, economic status.
For the world’s economy, 2021 hasn’t yet brought a break from 2020; COVID-19 remains dominant. Although all banking systems are vulnerable to upheaval, the situations for those in emerging markets are more tenuous for several reasons. S&P Global Ratings examined the three major risks facing a sample of 15 EM countries, including likely deterioration in asset quality, geopolitical and domestic policy uncertainty and vulnerability to abrupt changes in investor sentiment.
In December 2018, Andrés Manuel López Obrador swept to power, having promised to reduce Mexico’s longstanding problem of gang violence, which had climbed to record levels, and to bolster economic growth, which at that time had slowed considerably.
The oil price affects all of us, so its movements are a popular target of speculation. So far in 2019, the oil price has been tracking upward, and oil-market watchers are asking themselves if it could hit $100 per barrel soon. The definitive answer remains elusive, as the multiple and at times conflicting elements that determine the price of oil are in a word: complicated. Stay tuned as OPEC meets in June.
The world’s citizens have always been beset by risks of different types, but the frequency and intensity of risks from a variety of sources are increasing, especially for emerging economies in Latin America and the Caribbean. Insurance is the preferred recourse for those suffering from unfortunate events beyond their control, but even insurance has its limitations. What are the most effective risk-management tools available today?
Interview with Mr. Ricardo Cervera and Mr. Carlos Vara, Managing Directors and Founding Partners, VACE Partners
Private investment bank VACE Partners recognizes that it is only as strong as its team is; combining “intelligence, energy and enthusiasm with experience, ability, relationships and knowledge” has been VACE’s winning formula, enabling it to close on several important deals since its inception a decade ago. International Banker spoke with Ricardo Cervera and Carlos Vara, managing directors and founding partners, to learn more about this rising star on Mexico’s financial horizon.
Latin America under Tightening Global Liquidity Conditions: Emerging Markets in a Changing Global Environment
With economic growth returning to the developed world, the end of years of quantitative easing and easy monetary policy is in view; inflation concerns are reviving, guaranteeing rising interest rates along with tightening liquidity. Emerging markets in Latin America are benefiting from higher commodity prices, and despite some political tensions are proving to be an increasingly attractive destination for investor funds.
While 2018 may still be in its infancy, the risks hanging over the year’s foreign-exchange (forex) markets have been brewing for some time. An assortment of global hotspots are positioned to affect major currencies and their viability on forex markets.
The fears that caused a downturn in Mexican stocks are beginning to lift, revealing resilient and buoyant performance as the country’s main stock index, Mexbol, hits record highs. The run-up to the US presidential election stoked fears amongst international markets as the Republican candidate