International Economy - Current Affairs for June, 2015

As per the data, India now accounts for a meagre 0.123 per cent of the total global wealth worth 1.6 trillion US dollars in Switzerland's banking system. Indians' money in Swiss banks declined by over 10 percent to about 1.8 billion Swiss francs (1.98 billion US dollars or 12615 crore rupees) in 2014.

World Bank president Jim Yong Kim said in a statement that the organisation is working with the Government of Nepal and its international partners to help the country get the resources it needs to build back better.

President Xi Jinping is scheduled to meet the heads of the delegations representing the prospective founding members of the bank. A meeting of Finance Ministers of the 57 countries involved is also scheduled to take place. The China-proposed bank is expected to begin operating later this year with startup capital of around 100 billion US dollars.

According to a notification issued by the Directorate General of Foreign Trade the MEP for export of all varieties of onions will be 425 dollar per tonne. MEP is the rate below which no exports are allowed.

The Union Ministry of Civil Aviation on 25 June 2015 approved a proposal for setting up a second international airport at Jewar in the National Capital Region.

China being the largest shareholder at 30.34 percent and it has retained 26.06 percent of the voting rights. With Japan, the other large Asian economy besides China, opting out of the Bank's membership, India is its second largest shareholder with a stake of 8.52 percent and voting share of 7.5 percent.

Greece has defaulted on a 1.7 billion dollar payment to the International Monetary Fund becoming the first developed nation to do so. The deadline was missed by Athens hours after Eurozone Finance Ministers refused to extend its bailout. Greece is now formally in arrears, and there are fears that this could put Greece at risk of leaving the Euro.

It will contribute 930 million Australian dollars (718.5million US dollars) as paid-in capital to the institution over five years and will be the sixth largest shareholder.

These Border Haats have been established at Tripura state bordering Bangladesh. The concept of establishing “Border Haat” is to boost bilateral trade and enhance people to people contacts. These markets are set up at the zero line of the international border with one part on the Indian side and the other in Bangladesh.

The credit line which carries a 1% interest rate and a payment period of 20 years with 5 years grace, will be used mostly to finance infrastructure so that trade and investment can be increased to the mutual benefit of both countries. The actual projects will be decided by the Bangladesh authorities in consultation with Indian High Commission and EXIM bank which is handling the credit line.

These five countries together attracted 78 billion dollar. It represents 73 percent of the investment commitments in developing world in 2014. Investment commitments in China in 2014 were 2.5 billion dollar, its lowest level since 2010. According to a World Bank report, India has figured in top five emerging economies for highest investment commitments in private sector, infrastructure sectors - energy, transport and water. India has figured in the list despite a drop in investment commitments of 6.2 billion dollar last year.

This agreement provides for establishment of an international platform that would allow exchange of information on an annual basis, including account balances.

China is boosting its influence in global gold markets by establishing its largest gold investment fund led by Shanghai Gold Exchange, which is expected to raise about 100 billion yuan, 16.1 billion dollars. China has established its largest gold-investment fund in northwest China's Xi'an City aiming to bolster Beijing's role in global gold trade. The fund may also boost China's power over the world gold market. Indeed, Asia's gold demand is growing rapidly, accounting for more than 70 percent of the global total. Today China is the world's largest gold producer.