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On May 31, the Colombian Ministry of Foreign Affairs issued a statement on May 30, local time, stating that in response to the Ecuadorian governments earlier announcement that it would stop imposing a "safety tax" on Colombian goods, Colombia would lift its trade retaliatory measures against Ecuador and promote the normalization of bilateral economic and trade relations.May 31 - A Bloomberg survey of economists median forecast indicates that the U.S. unemployment rate will remain unchanged at 4.3% in May, while nonfarm payrolls will increase by 89,000. This increase would push the three-month average job growth rate to its highest level in over a year, sparking discussions about a continued acceleration in hiring. Forecasters expect the healthcare sector to maintain its strong momentum, while cyclical sectors such as construction, leisure, and hospitality will also see a recovery, with demand in these sectors likely benefiting from the warm weather of the past month. Manufacturing employment may also be boosted as consumers stockpile goods in anticipation of potential price increases following a potential conflict with Iran.On May 31, according to Iranian state television, Saeed Ajorlou, a member of Irans Media Committee, stated on Saturday that Tehran had not yet approved the final draft of the proposed agreement with the United States, and warned that Iran might withdraw from the agreement if the US failed to fulfill its commitments. In an interview, Ajorlou said that to his knowledge, as of Friday evening, the final text had not been approved, but the differences between the two sides were minimal. He stated, "If the final text is approved, we will enter a 60-day phase of detailed consultations," adding that each of the 14 articles of the agreement contains annexes that require further negotiation. Ajorlou emphasized that the implementation mechanism is more important than the text itself, especially regarding the acquisition of Iranian assets and the fulfillment of commitments by the other side. He stated that the proposed agreement includes a clause allowing Iran to withdraw from the agreement if the other side fails to fulfill its commitments. He indicated that Iran could withdraw from the agreement if violations occur, including breaches of the ceasefire agreement, failure to grant access to Iranian funds, or failure to lift the naval blockade. He added that if commitments are not fulfilled in the initial phase, Iran will reconsider its participation in the proposed 60-day negotiations.The Indian government stated that the current consumption tax rates for gasoline and diesel consumed domestically will remain unchanged.On May 31, local time, Ibrahim Rezaei, spokesman for the Iranian Parliament’s National Security and Foreign Policy Committee, said on May 30 that the naval blockade against Iran “will eventually end, whether through negotiations or military action.”

Exec Director of the Bank of Japan Refuses to Launch CBDC for Negative Rates

Cameron Murphy

Apr 14, 2022 10:49


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The CBDCs will not be utilized to attain negative rates, according to Bank of Japan Executive Director Shinichi Uchida.


Another BoJ officer indicated in February that CBDCs might harm the economy.


Other banks and businesses in the nation are working on their own stablecoins.


As Japan continues to build its own Central Bank Digital Currency (CBDC), the central bank that will issue it is expressing reservations.

Japan Opposes CBDC in Part, but Not Completely

According to Reuters, Bank of Japan Executive Director Shinichi Uchida indicated that if a digital currency of the Japanese Yen is meant to be used to produce negative rates, the central bank would not launch it.


Recently, Japan started testing the possibility of establishing a CBDC within the next four years, and there has been back and forth among economists in the nation.


Regardless, the central bank is still experimenting and testing new functions.


The tests are now in their second phase, and the Bank of Japan intends to investigate the possibility of imposing a transaction and HODLing restriction on the CBDC.


The bank is also considering whether or not the CBDC should be converted into an interest-bearing asset. However, according to Uchida, doing so might lead to the CBDC becoming a bank deposit alternative. "While the concept of employing such a feature as a method to create a negative interest rate is frequently debated in academics, the Bank will not establish CBDC on this premise," he said, adding to the worry over negative rates.

CBDC-Related Issues

While Uchida was against negative rates, Hiromi Yamaoka, the former head of the Bank of Japan's financial settlement department, warned that CBDCs may ruin the economy.


Hiromi agreed that payment systems should be digitized, but he opposed utilizing a CBDC to do it. "Some argue negative interest rates may operate more successfully with a digital currency, but I don't think so," he said of his reservations about negative interest rates.


Companies and institutions, on the other hand, are developing their own currency offers in the meanwhile，A Japanese trading firm, aims to issue a gold-backed cryptocurrency in the nation.


Even though it will serve as a stablecoin, it will be tethered to the value of 1 gram of gold rather than the Japanese Yen.


While the "stablecoin" is a viable investment option, it pales in comparison to what a real stablecoin or CBDC can do. As a result, the Bank of Japan estimates that the nation will have to wait until 2026 to receive its own digital currency.

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