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The Daily Brief: U.S. Dollars Held by Venezuelan Companies Subject to High Exchange Fees

U.S. Dollars Held by Venezuelan Companies Subject to High Exchange Fees

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SchmiAlf, CC BY-SA 4.0 via Wikimedia Commons

Summary:

  • Since 2020, Venezuelan banks have allowed companies to store U.S. dollars in Venezuelan banks, shielded from inflation.
  • Such accounts are shielded from interest payments.
  • The conversion to foreign banks is subject to transfer fees as high as 7%.
  • International business observers note that although the US has levied sanctions against Venezuela, transactions with private Venezuelan firms are not subject.
  • Storing U.S. dollars abroad gives greater flexibility for companies to pay international creditors.
  • Everyday Venezuelans are also using U.S. dollars and Euros for daily transactions.
  • Termed “dollarisation,” use of foreign currency is often viewed as a measure to avoid runaway inflation of the local currency.

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Spain Sends Troops to Morocco After 8,000 Migrants Swim to Ceuta

Beach in Ceuta
Mario Sánchez Bueno from Málaga, España, CC BY-SA 2.0 , via Wikimedia Commons
  • This Tuesday, Spain’s Prime and Interior Minister announced that it would be sending troops to North Africa in response to 8,000 migrants who swam from Morocco and to the shores of Ceuta. 
  • The mass arrival causing a humanitarian emergency comes after sudden tensions between the two nations due to Spain’s hospitality towards a rebel leader preaching for independence which the Morrocon government has criticized.
  • Spanish Prime Minister Pedro Sanchez stated the influx was “a crisis for Spain and for Europe” after video footage released revealed the military trucks and helicopters deployed on the scene. 
  • Prime Ministers of both regions agreed to meet. Although having yet to speak on the most current events, Morrocan Prime Minister Karmia Benyaish told press in response to the situation that “actions have consequences.”

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Strongest Cyclone On Record Hits India Amidst Covid-19 Pandemic

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  • Cyclone Tauktae that arrived in India hit the coast of Mumbai, leaving over 90 people missing and killing 19.
  • Over 200,000 people have evacuated after warnings of it’s severity Monday evening, as the cyclone hit Gujrat first, taking out trees and telephone poles. 
  • The Cyclone comes amidst the worsening situation of the covid-19 pandemic in India, as hospitals struggle to maintain the spread of the deadly disease. Over 500 Covid patients in makeshift care centers were among the few having to evacuate, as the storm took out critical power supplies and generators needed.
  • India’s Natural Disaster Response Force and the Indian Navy have deployed over 100 teams between six heavily affected states. Thousands of individuals affected find shelter at refugee camps as the storm continues to rage through the city. 

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Trumps’ Inquiry Turns Criminal

Gage Skidmore, CC BY-SA 3.0 , via Wikimedia Commons
  • Fabien Levy, spokesman of Letitia James, says the case against the Trump organization has turned into a criminal case. 
  • Letitia James is the democratic prosecutor for Trump’s case. 
  • The inquiry was launched in March, 2019 dealing with Trump Organization’s assets and tax fraud
  • Trump has now turned in his tax returns and has called this investigation a “witch hunt”.

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EU Calls for a Ceasefire at Gaza Strip 

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Marius Arnesen, CC BY-SA 3.0 NO , via Wikimedia Commons
  • Josep Borrell, the EU foreign policy chief, has called for a ceasefire between Israel and Hamas. 
  • The number of deaths are still increasing as violence from Israel keeps growing. 
  • In the midst of this the US has promised 735M weapons Sale

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All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

Daily Brief

Salman Rushdie Severely Stabbed due to his Publication of the Book “The Satanic Verses”

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Salman Rushdie 2014
  • Salman Rushdie, an author, was severely stabbed in his neck and abdomen on stage by a suspect named Hadi Matar, causing him to be on a ventilator and potentially losing an eye.
  • An Iranian leader back in the 20th century wanted Rushdie killed because of his novel, Satanic Verses, that many Muslims found disrespectful. This led Salman to go into hiding for almost a decade.
  • Translators from different countries reading this book were harshly stabbed to death when the book came out and Iranian leader, Ayatollah Khomeini called for Salman’s execution for three million dollars.
  • The Iranian government has not yet responded to this issue, but many Iranians in the media claim him to be an apostate who later became an atheist.

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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China Threatens Consequences if Pelosi Visits Taiwan

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  • US House of Representatives Speaker Nancy Pelosi has landed inTaiwan. Prior to the visit, China’s Foreign Ministry has voiced their disapproval, stating that “China will take resolute responses and strong countermeasures to defend its sovereignty and territorial integrity.”
  • US Secretary of State Antony Blinken emphasized in response  that “The speaker will make her own decisions about whether or not to visit Taiwan,” and that the US is looking to Beijing to “act responsibly and not to engage in any escalation going forward.”
  • The US has made it clear that members of Congress routinely visit Taiwan and that this trip is non-threatening and has precedent. Even so, some officials have expressed concern that China may invade Taiwan’s air defense zone or send missiles near Taiwan in retaliation.
  • Pelosi has criticized China’s leadership and vocalized support for Taiwan in the past. She is currently on her tour of Asia, with scheduled visits to Singapore, Malaysia, South Korea and Japan.

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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First Grain Ship Departs Ukraine After Six Months of Russian Blockade

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Odesa pristav
  • The first shipment of grain departed the port of Odesa on Monday after Russia’s blockade of Ukrainian ports for the last six months trapped around 20 million metric tons of wheat and corn.
  • Russia recently made a deal with Ukraine, brokered by the UN and Turkey, allowing grain exports to resume, appeasing fears of a global food supply crisis and rising prices.
  • Ukrainian Foreign Minister Dmytro Kuleba celebrated the shipment, calling it a “day of relief for the world, especially for our friends in the Middle East, Asia, and Africa.”
  • Ukrainian President Volodymyr Zelensky was more hesitant to celebrate the shipment, stating “it is too early to draw any conclusions and make any forecasts” and he wants to “see how the agreement works and whether security will be really guaranteed.”

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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Concerns Rise As US Teeters on the Brink of Recession

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  • The US economy declines for the second quarter in a row, causing, what other countries would consider, an economic recession. 
  • The prices for groceries, gas, and other basics are rising at the fastest pace since 1981. The US Central Bank is quickly trying to raise borrowing costs in order to cool the economy and ease the prices on goods, but with the contraction, at the annual rate of 0.9% in the 3 months to July, many are still getting concerned. 
  • President Biden struggles to convince the public that the economy is sound, with the unemployment rate at a low 3.6%. But with inflation in the US hitting 9.1% in June, the fastest price appreciation in 4 months, consumer spending has slowed at an annual rate of 1%. 
  • Many other countries, such as China and the UK, have been hit harder by the surge in energy prices and the War in Ukraine, causing risks from abroad. Other countries are facing much more serious problems and once they’re hit, their problems can spill over and affect the US. 

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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North Korea Could Possibly Be Preparing another Nuclear Test

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  • North Korea could be preparing a seventh nuclear test, especially after Mr. Kim announced that the country is fully ready for any military confrontation with the US at a Korean War Anniversary event. 
  • A US special representative in North Korea states that Jong-Un has tested an unprecedented number of missiles this year—31 to 25. Jong-Un also stated that threats from the US required North Korea to achieve the urgent historical task of strengthening its self-defense. 
  • Jong-un also stated that South Korea is reviving a plan to counter North Korea’s threat by mounting precautionary strikes; in June alone, South Korea launched 8 missiles of its own.
  • The North Korean regime is especially angry with South Korea’s new president Yoon Suk-yeol and his so-called Kill Chain strategy. This strategy allows South Korea to launch ballistic missiles and air strikes on North Korean targets if it ever feels threatened. 
  • North Korea has also not been getting as much engagement with Washington ever since Biden replaced Trump, and could be hinting at some sort of deliberate escalation by the North, and preparations have been underway at the Punggye Ri test site since March.

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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Russia Limits Gas Supply to Germany

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Black Sea port of Theodosiya panoramio
  • Gazprom, a major Russian energy provider, has stated it will reduce the supply of gas to Germany by half via the Nord Stream 1 pipeline due to repair work. 
  • Germany has said that they see no technical reason for the decrease in gas supply. The European Union continues to accuse Russia of weaponizing energy, with Ukrainian President Volodymyr Zelensky stating, “This is an open gas war that Russia is waging against a united Europe.”
  • Ukraine and Russia signed an agreement to allow the export of grain via the Black Sea after Russia continued to block millions of tonnes from being exported. The next day, Russia struck missiles at the port, some of which hit the infrastructure of the port.
  • The US and Ukraine are optimistic that the agreement will still be implemented, with the US State Department stating, “Despite these attacks, we do understand that the parties are continuing preparations to open Ukraine’s Black Sea ports for food and fertilizer exports…we also continue to expect that the Black Sea agreement will be implemented.”

All views expressed in this editorial are solely that of the author, and are not expressed on behalf of The Analyst, its affiliates, or staff.

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