Over 200 dead in Bangladesh 🇧🇩 + $50 Trillion in oil discovered under Antarctica 🛢️

TRADE NEWS

Russia Adopts Cryptocurrency for Global Trade Payments Evading Sanctions

In a landmark move, Russian lawmakers have approved a bill allowing businesses to use Bitcoin and other cryptocurrencies for international trade. This step is intended to circumvent Western sanctions imposed after Russia's invasion of Ukraine. The new law, effective from September, seeks to resolve significant payment delays with key trading partners like China, India, and the UAE.

Central bank Governor Elvira Nabiullina, a strong advocate for the law, announced that the first cryptocurrency transactions are expected by the end of the year. The central bank plans to establish an "experimental" infrastructure for these payments, though specifics are still forthcoming. Anatoly Aksakov, head of the Duma, hailed this decision as a historic milestone for Russia’s financial sector.

This legislation also includes regulations on cryptocurrency mining and the circulation of digital assets but maintains the ban on cryptocurrency payments within Russia. This approach mirrors actions taken by countries like Venezuela and Iran, which have turned to cryptocurrencies to mitigate the impact of international sanctions.

Sanctions have caused considerable delays in international payments, severely impacting Russia's economy and contributing to an 8% decline in imports during the second quarter of 2024. Despite efforts to switch to trade partners' currencies and develop an alternative payment system within the BRICS alliance, many transactions still depend on dollars and euros via the SWIFT system. The World Bank highlights that this dependency exposes countries to significant financial risks amid geopolitical tensions.

"The risks of secondary sanctions have grown," Nabiullina stated. "They make payments for imports difficult, and that concerns a wide range of goods." These complications have extended supply chains and increased costs, underscoring the necessity for a reliable alternative payment method. This legislative change aims to alleviate the economic difficulties posed by sanctions and ensure smoother international trade operations.

PRODUCT OF THE WEEK

Meet the Most Advanced Wireless Earbuds Ever Created

Brooklyn-based Status Audio changed the earbud game by packing three speakers inside each bud. Basically, they put insanely expensive pro gear in an accessible-to-all form. Their distinctive design gives you the best damn fit. Plus, they offer the longest battery life we’ve ever heard of. Pun very much intended.

VIDEO OF THE WEEK

$50 Trillion Was Just Found Under Antarctica

What do we do when 511 billion barrels of oil has been found in the world's largest nature reserve? Antarctica remains unmined due to the Antarctic Treaty, which preserves it for peaceful and scientific use. Despite potential resources, harsh conditions and legal restrictions hinder extraction. However, geopolitical interests and future treaty renegotiations might change this, risking environmental impact for economic gains.

GLOBAL TRADE SNIPPETS

General average declared on Maersk Frankfurt. The container fire aboard the Maersk Frankfurt a newly built containership chartered to Maersk continues after 10 days of a continuous firefight. General average has now been declared.

U.S. delays tariff increases on Chinese imports, including EVs and batteries. Initially set to take effect on August 1, the tariffs will now be delayed by at least two weeks as the office reviews over 1,100 comments received from stakeholders. The USTR is expected to announce its final determination on the tariffs sometime in August.

Container ship fleet sees fastest growth in 15 years. Since the beginning of the year, the capacity of the container ship fleet has increased by 1.6 million TEUs.

South Korea's exports grow for 10th straight month. Of the country's 15 major export items, 11 products saw an increase in outbound shipment. Semiconductor shipment soared 50.4 percent from a year earlier to $11.2 billion dollars in July, continuing to rise for the ninth straight month.

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GLOBAL NEWS

Over 200 Dead. What’s Really Happening In Bangladesh

Over the past couple of weeks, Bangladesh has witnessed widespread protests that began with university students opposing quotas in government jobs. This movement escalated into violent clashes, leading to significant civil unrest. The situation intensified as law enforcement's heavy-handed response resulted in the deaths of over 200 people and the arrest of thousands of demonstrators, including students and opposition members.

The government's response included banning Jamaat-e-Islami, the country's fourth-largest party, labeling it a terrorist organization. This move is seen by analysts as an attempt to divert attention from the political crisis facing Prime Minister Sheikh Hasina’s administration.

Main Events Breakdown:

• Early July 2024: The protests began following a High Court ruling on June 5, which reinstated a 30% job quota for descendants of freedom fighters. This policy reserves 30% of government jobs for individuals whose parents or grandparents participated in the country's 1971 war of independence. Students felt this quota system unfairly limited job opportunities based on merit.

• July 14, 2024: Prime Minister Sheikh Hasina dismissed the students' demands, likening the protesters to wartime collaborators, which fueled further outrage. Students from Dhaka University and other major universities protested through the night.

• July 15, 2024: Protests intensified, with thousands of students and supporters taking to the streets across major cities like Dhaka, Chattogram, Rajshahi, and Sylhet.

• July 18, 2024: The situation escalated as the government deployed police and other security forces to quell the protests, resulting in violent clashes. The police used tear gas, rubber bullets, and batons, leading to numerous injuries.

• July 26, 2024: Reports emerged of over 200 deaths and thousands of injuries. The government imposed a nationwide curfew and an internet blackout to control the unrest.

• July 31, 2024: Tens of thousands participated in the "March for Justice" across various cities, demanding justice for those killed and an end to police harassment. Over 100 protesters were injured, and more than 100 students were arrested. On the same day, the government banned Jamaat-e-Islami, blaming it for inciting violence during the protests.

Despite these measures, public dissatisfaction and international condemnation continue to grow. The protests remain ongoing, with demonstrators calling for accountability, an end to government oppression, and reforms in the quota system. This unrest has become one of the most significant challenges to Prime Minister Hasina’s long tenure, highlighting deep-seated issues of governance and human rights in Bangladesh.

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SHIPWRECK OF THE WEEK ⚓️☠️

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