Brazil hosts BRICS summit, eager to avoid provoking Trump's ire
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Bloomberg
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Lutnick Says Trump's Tariffs Will Take Effect on Aug. 1
President Donald Trump's country-by-country tariffs will take effect Aug. 1, Commerce Secretary Howard Lutnick said, signaling some breathing room for US trading partners ahead of a July 9 deadline previously set by the president. 'I think we'll have most countries done by July 9, either a letter or a deal,' Trump told reporters Sunday before boarding Air Force One to head back to Washington from a weekend in New Jersey. He suggested that letters with looming tariff increases will start going out Monday and 'some will be going out on Tuesday.'
Yahoo
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Decade-old Local Currency Push by BRICS Is Still A Pipe Dream
(Bloomberg) -- BRICS countries once again failed to make significant strides in the cross-border payments system for trade and investment they've been discussing for a decade. Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Massachusetts to Follow NYC in Making Landlords Pay Broker Fees NYC Commutes Resume After Midtown Bus Terminal Crash Chaos What Gothenburg Got Out of Congestion Pricing In a statement released as they kicked off their meeting in Brazil Sunday, leaders committed to additional talks on the potential for greater trade integration of the 10-nation bloc. 'We task our ministers of finance and central bank governors, as appropriate, to continue the discussion on the BRICS Cross-Border Payments Initiative,' the statement reads. A survey prepared by the Brazilian central bank will be presented at the two-day Rio de Janeiro summit. Despite the group's aspirations, progress has been slow — and the tide of global trade is shifting so quickly that it may be impossible to catch up. It's a missed opportunity for BRICS as the dollar comes under continued pressure from President Donald Trump's erratic policies. The greenback had the worst start to a year since 1973 as Trump's trade war and attacks on the Federal Reserve's hesitancy to lower interest rates roiled markets, calling into question the longstanding outperformance of US assets and sending investors fleeing in search of alternatives. It's created a boon for emerging markets that traders expect to extend further. While all members are supportive of the idea of cross-border payments, first cited in the statement of the bloc's 2015 summit, the technical aspects of integration are complicated. Central bank systems in some countries are not yet ready, three people familiar with the discussions said. It will take time to adapt those, they said, adding that it's unlikely to happen anytime soon. Roadblocks Discussions involve payment mechanisms, types of currencies used, how to implement infrastructure and how to share costs. There are security concerns about the integrated systems, two people said, adding that the BRICS bloc's recent expansion has also caused delays. The fact that several of the bloc's currencies are non convertible, and existing sanctions on member states Iran and Russia further complicate discussions, one person said. Some countries may argue that the cost involved in setting up and maintaining a unified system would not be justified given what they already have in terms of bilateral trade, another added. All asked not to be identified sharing details of private conversations. China, for one, has taken advantage of the US disarray and launched a sweeping campaign to promote the yuan's global role. In a speech last month, Chinese central bank governor Pan Gongsheng outlined a vision in which the country's financial markets are more open and the yuan plays a central role in the world's capital flows. Beijing is exploring the launch of the country's first domestic currency futures, which could compete with similar hedging tools in offshore markets like Singapore and Chicago, and is expanding its own payment system, known as CIPS, to cover more foreign banks. Trump pushback BRICS leaders also reaffirmed their commitment to expand local currency financing, diversify funding sources and strengthen cooperation in trade to promote inclusive growth and sustainable development. A document obtained by Bloomberg that outlines the latest thinking by the bloc shows that discussions around a new investment platform dubbed NIP are similarly stalled. The platform is seen as potentially filling a gap in development finance, providing more flexibility and reducing the dependency on hard currency financing. But 'given the variety of approaches and proposals raised, and the complex nature of the issues involved, further technical dialogue will be essential to advance a common understanding of the Platform's potential added value and operational framework,' it reads. Trump has threatened to slap 100% levies on BRICS if they ditch the dollar in bilateral trade. The pushback, in turn, has spurred interest in developing local payment systems and other instruments that can facilitate commerce and investment between the nations. The idea of abandoning the dollar and setting up a common currency for the bloc isn't under discussion, several officials have said. The US leader's response has not delayed BRICS conversations for the integrated systems, three people said. 'One of the ways to bring countries closer together is to reduce financing costs for trade operations. And one of the ways is to use more local currencies,' Tatiana Rosito, secretary for international relations at Brazil's Finance Ministry, said in an interview. 'Banks say that, depending on the period in which you carry out the operation, they may need to use the rate converting renminbi to dollars. But the goal in the end is you one day don't have it.' If there's a liquid market, 'you will have a direct exchange rate real-renminbi, real-rupee, real-rand,' she said. 'But this will depend on whether you have a critical mass and a volume of trade investments.' High rates The BRICS statement also references the added challenge presented by 'fluctuations in financial and monetary policies in some advanced economies' for countries already grappling with high debt levels. 'High interest rates and tighter financing conditions worsen debt vulnerabilities in many countries,' it reads. The bloc is also in discussions to establish a multilateral guarantees initiative which would focus on improving 'creditworthiness in the BRICS and the Global South.' The initiative, dubbed BMG, will be incubated within the NDB and start without additional capital contributions, according to the statement. --With assistance from Alan Crawford. For Brazil's Criminals, Coffee Beans Are the Target SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Sperm Freezing Is a New Hot Market for Startups Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P.
CNN
32 minutes ago
- CNN
Suriname parliament elects first female president
Suriname's parliament backed Jennifer Simons as the South American country's first woman president on Sunday, setting the doctor and former parliamentary speaker on course to helm a nation on the cusp of a predicted oil boom. Surinamese lawmakers backed Simons as president six weeks after the ruling party and its top opposition nearly tied in the race for legislative seats, leading to a coalition deal to install Simons as president. Simons' opposition National Democratic Party won 18 seats and current President Chan Santokhi's Progressive Reform Party won 17 seats in the May 25 parliamentary election. Smaller parties won the remaining 16 seats. Suriname's president is elected indirectly. Following the general election, members of the National Assembly vote for the president, and a candidate must secure a two-thirds majority to win the office. 'I come into this office to serve, and I will use all my knowledge, strength and insight to make our wealth available to all of our people,' Simons, 71, said in a brief speech after lawmakers approved her appointment with a round of applause. Simons vowed to pay special attention to young people and those who have not yet had the best opportunities. 'I am very aware of the responsibility now placed on our shoulders, a responsibility compounded for me by the fact that I am the first woman to hold this office,' she added. 'I do not need many words. My thanks and we will get to work.' Incumbent President Chan Santokhi, a 66-year-old former police commissioner who stood for re-election, had faced criticism over a lack of protections for the poorer and more vulnerable sectors of society. Santokhi congratulated Simons on her election and told lawmakers he took responsibility for his shortcomings and hoped he would be remembered for his commitment. He said he would continue to serve the country after the transition as a member of parliament. Suriname, a former Dutch colony independent since 1975, is expected to see a surge in revenues from the nation's first big offshore energy development, an oil and gas project led by TotalEnergies The Gran Morgu project is set to begin production in 2028. Discovered reserves may allow Suriname to compete with neighboring Guyana, whose economy grew 43.6% last year, as a prominent producer. However, campaigning featured little debate about what the next government, which will hold power until 2030, should do with the income. Simons' election was agreed in a six-party deal two days after the parliamentary contest, but was not made official until Sunday's vote. Her inauguration is scheduled for July 16. Suriname's parliament backed Simons for the post by acclamation, alongside National Party of Suriname (NPS) leader Gregory Rusland as her vice president. Simons served as parliamentary speaker for a decade until 2020. She was second in vote tallies behind Santokhi, winning more than 41,700 votes. She is the head of the NDP, founded by former President Desi Bouterse, who dominated Surinamese politics for decades but died a fugitive last year. NDP founder Bouterse left office in 2020, the year after he was convicted in the 1982 murders of 15 government critics. When the conviction was upheld in 2023, Bouterse went into hiding, dying at the age of 79 at an unknown location on Christmas Eve.
