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Economics, Finance sector development

Plunging yen hit by widening interest rate differentials and rising commodity prices

plunging-yen
The yen’s safe-haven status has been called into question after sharp depreciations amid rising energy prices and widening global interest rate differentials relative to Japan.

Economics, Environment, Finance sector development, Governance and public sector management

Supporting blue skies through green development loans

afternoon-beijing-skyline
Close collaboration, innovative project design, and technical and management capacity building have supported green development and air quality improvement by the People’s Republic of China (PRC) and the Asian Development Bank (ADB).

Economics, Environment, Finance sector development, Governance and public sector management

Central banks lead the way on green monetary policy

green-city-landscape
Central banks are becoming increasingly aware of the importance of considering climate change risks, such as physical and transition risks, and some have already launched monetary policy initiatives within the mandate of price stability.

Economics, Finance sector development, Industry and trade, Information and Communications Technology

Harnessing digitalization on the path to sustainable economic development in Asia

digital-city-illustration
Digitalization is helping to transform economies by enhancing economy-wide competitiveness and productivity, with trade being an important channel. The use of big data and the emergence of online platforms have further bolstered the progression of the digital economy, particularly in Asia.

Blog, Climate change, Finance sector development

COP26-aligned fiscal policy instruments for boosting Asian green growth, sustainable recovery

Fiscal policy instruments for boosting green growth and sustainable economic recovery
The final months of 2021 will be a crucial time for climate policy. At the United Nations Climate Change Conference (COP26) in Glasgow from 31 October to 12 November, countries will need to come forward and show that they take the commitments that they made in Paris seriously and that they will reduce GHG emissions such that we reach net zero by 2050 to meet the climate targets of the Paris Agreement. Carbon pricing and other fiscal policies will play a critical role.

Economics, Finance sector development

Should emerging Asia worry about a “taper tantrum” post-COVID-19?

should-emerging-asia-worry-about-a-taper-tantrum-post-covid-19
With an improved growth outlook in the United States (US) in the second half of 2021 as the economy recovers from the coronavirus disease (COVID-19), in part related to the substantial fiscal stimulus in the US introduced at the start of 2021, the Federal Reserve (Fed) is on course to slow down its asset purchases program, or so-called quantitative easing (QE) tapering.

Economics, Finance sector development

Foreign holdings of local currency bonds: A double-edged sword for emerging Asia

Foreign holdings of local currency bonds: A double-edged sword for emerging Asia
Local currency bond markets (LCBMs) have continued to develop in emerging Asian economies since the early 2000s, with foreign investor participation rising markedly since the global financial crisis of 2007–2008. LCBMs help to enhance domestic financial stability by enabling governments and companies to borrow in domestic currency.

Climate change, Energy, Finance sector development

Green bonds show promise for financing energy-efficient buildings in Southeast Asia

Green bonds show promise for financing energy-efficient buildings in Southeast Asia
The member countries of the Association of Southeast Asian Nations (ASEAN) have been experiencing a surge in energy demand due to their growing populations, expanding economies, and rising living standards. One reason for this rising energy demand is increased activity in the building and construction sector.

Economics, Finance sector development, Health, Social development and protection

Remittance inflows giving resilience to Bangladesh’s rural economy amid COVID-19

Remittance inflows giving resilience to Bangladesh’s rural economy amid COVID-19
While the World Bank has identified Bangladesh as one of only three big economies that had increases in remittance inflows in 2020, along with Pakistan and Mexico (Ratha et al. 2020), and remittances have long made up a substantial share of people’s income in the country, preliminary results from a recent study supported by the Asian Development Bank Institute (ADBI) finds surprising resilience for remittance inflows into the rural economy during the first wave of the coronavirus disease (COVID-19) pandemic in Bangladesh.

Climate change, Finance sector development

Which financing sources matter for private investment in renewable energy in Asia?

Which financing sources matter for private investment in renewable energy in Asia?
The mobilization of climate finance is critical for limiting global warming to within 1.5°C and preventing catastrophic climate change (IPCC 2018). Annual green investments totaling $1.5 trillion are needed (United Nations 2017). Despite the falling cost of renewable energy technologies, energy investments remain dominated by investments in fossil fuels. In Asia and the Pacific, annual investments fell after 2017 and until 2020 remained below the 2017 level.