As of 10:40 PM AST, BTC climbs as the dollar weakens …

As the US Dollar continues its decline, the cryptocurrency, bitcoin, keeps creeping up. What’s next for this speculative asset?

BTC/USD = 20,060.1

BTC/EUR = 16,472.4

BTC/JPY = 2,076,220

BTC/CNH = 130,672

BTC/DKK = 122,572

BTC/CHF = 17,757.2

Source: OANDA

As of 9:51 am AST 30 November 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of 9:51 am AST, 30 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76954 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.29852 CAD

CAD/USD=0.76954   USD/CAD=1.29852

CNH/USD= 0.15205   USD/CNH=6.57348

EUR/USD= 1.19622   USD/EUR=0.83576

DKK/USD =0.16071   USD/DKK=6.21851

NGN/USD= 0.00260    USD/NGN=377.445

JPY/USD=0.00960    USD/JPY=104.06

INR/USD=0.01351       USD/INR=73.7640

JMD/USD=0.00675    USD/JMD=145.165

GYD/USD=0.00468       USD/GYD= 205.117

GHS/USD=0.17037     USD/GHS= 5.82050

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00898       USD/KES= 108.719

BBD/USD = 0.50000     USD/BBD = 2.0000

TTD/USD = .14475         USD/TTD= 6.65695

BTC/USD= 16987.20     USD/BTC= 0.00006

Source: OANDA

Major political/legal event impacting foreign exchange

On 27 November 2020, President Donald J. Trump nominated Brian P. Brooks as Comptroller of the Currency for a term of five years.  As Comptroller, Mr Brooks would be responsible for administering the United States’ national banking system as well as the branches of foreign banks doing business in the United States.  Mr Brooks is currently serving as acting Comptroller.  His nomination must be confirmed by the U.S. Senate.

Source: Executive Office of the President

As of 12:04 pm AST 27 November 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of 12:04 pm AST, 27 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76870 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30069 CAD

CAD/USD=0.76870   USD/CAD=1.30069

CNH/USD= 0.15229   USD/CNH=6.56495

EUR/USD= 1.19144   USD/EUR=0.83922

DKK/USD =0.16007   USD/DKK=6.24556

NGN/USD= 0.00261    USD/NGN=378.872

JPY/USD=0.00959    USD/JPY=104.28

INR/USD=0.01355       USD/INR=73.7012

JMD/USD=0.00673    USD/JMD=145.545

GYD/USD=0.00469       USD/GYD= 204.941

GHS/USD=0.17070     USD/GHS= 5.83161

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00901       USD/KES= 108.870

BTC/USD= 17368.40     USD/BTC= 0.00006

Source: OANDA

Major political/legal event impacting foreign exchange

Basel Committee amends capital requirements for non-performing loan securitisations

The Basel Committee on Banking Supervision yesterday published the technical amendment Capital treatment of securitisations of non-performing loans. The rule, which the Committee started developing before the onset of the Covid-19 pandemic, closes a gap in the Basel framework by setting out prudent and risk sensitive capital requirements for non-performing loan securitisations.

The Committee consulted publicly on the technical amendment in June 2020. In contrast to the consultative proposal, the final rule permits banks to apply the external ratings-based approach to non-performing loans securitisation exposures, without the 100% risk weight floor. In addition, the final rule include discounts on tranche sales in the definition of discount incurred by the originating bank that factors in the capital requirements.

Committee jurisdictions agreed to implement the technical amendment by no later than January 2023. The Committee would like to thank all those who contributed time and effort to express their views during the consultation process.

Source: Bank of International Settlements

As of 10:25 am AST 24 November 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of  10:25 am AST, 24 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76486 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30725 CAD

CAD/USD=0.76486   USD/CAD=1.30725

CNH/USD= 0.15227   USD/CNH=6.56585

EUR/USD= 1.18633   USD/EUR=0.84284

DKK/USD =0.15930   USD/DKK=6.27554

NGN/USD= 0.00261    USD/NGN=378.884

JPY/USD=0.00961    USD/JPY=104.01

INR/USD=0.01348       USD/INR=74.0457

JMD/USD=0.00672     USD/JMD=145.825

GYD/USD=0.00469       USD/GYD= 204.934

GHS/USD=0.17100     USD/GHS= 5.81368

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00905       USD/KES= 108.605

BTC/USD= 18,431.20     USD/BTC= 0.00005

Source: OANDA

Major political/legal event in the United States

Biden to nominate Janet Yellen for Treasury secretary

Axios reports that presumptive U.S. president-elect, Joseph R. Biden, will announce later today his choice of Janet Yellen as U.S. Secretary of the Treasury.  Ms Yellen, 74, served as chairman of the Board of Governors of the Federal Reserve System from 2014 to 2018.

Source: Axios

As of 9:50 am AST 23 November 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of 9:50 am AST, 23 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76362 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30914 CAD

CAD/USD=0.76362   USD/CAD=1.30914

CNH/USD= 0.15258   USD/CNH=6.55057

EUR/USD= 1.18551   USD/EUR=0.84331

DKK/USD =0.15913   USD/DKK=6.27877

NGN/USD= 0.00260    USD/NGN=378.095

JPY/USD=0.00962     USD/JPY=103.81

INR/USD=0.01348       USD/INR=73.9600

JMD/USD=0.00673     USD/JMD=145.650

GYD/USD=0.00469       USD/GYD= 204.889

GHS/USD=0.17074     USD/GHS= 5.80300

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00905       USD/KES= 108.539

BTC/USD= 18,581.00     USD/BTC= 0.00005

Source: OANDA

Major political/legal event in the United States

On 22 November, the press secretary for the President of the United States issued the following statement at the G20 Leaders Summit:

“President Donald J. Trump participated in the second day of the virtual G20 Leaders Summit on November 22, 2020.  President Trump discussed the economic model he has enacted through cutting taxes and regulations, promoting abundant and affordable energy, and negotiating trade agreements grounded in the principles of fairness and reciprocity.  President Trump expressed the importance of policies that promote workers and families.  He also discussed the historic achievements made in the United States and around the world in empowering and investing in women, and called on all countries to do more.  President Trump thanked Saudi Arabia for its leadership during its G20 presidency and looked forward to working with Italy as incoming G20 president.  He also encouraged the G20 to continue to work together to achieve security, prosperity, and peace for all nations.”

Source: Executive Office of the President of the United States

Identifying the economic value within the African Diaspora and designing currency to transmit it …

Today while waiting for a haircut, a lovely young lady, who was waiting on her companion, asked me if I was a professor.  I was caught off guard by the question for it seemed almost prescient in nature.  I had been an adjunct professor back in Maryland, I told her.  She then asked if I had been on television. Again I informed her that I had made two appearances on a business news channel.  I expected the exchange to end there since her companion was finished with his haircut, but fortunately the conversation did not end there.  She proceeded to ask my opinion about the current state of the economy as it impacted black people.  I was happy to oblige since the topic was interesting and yes, when you get to engage a very attractive woman on the state of the political economy (underscore very attractive), you don’t pass it up.

The conversation turned to whether African Diaspora communities could use their own currency.  My answer was yes, but to get there we have to first identify a resource that could be used to generate an underlying value for the currency.  A true community is built on a resource the extraction, processing, and distribution of which leads to an industry that generates the income necessary for sustaining the communities members.

Second, there has to be a banking/financing resource in place to convert the assets of the underlying resource into loanable funds.

Right now we have very little of the above two components.  For example, Africans in America hold very little of its capital.  By some estimates, Africans in America hold approximately two percent of total capital in the United States. In addition, consider farm holdings by Africans in America.  Africans in America hold approximately two percent of all farms in the United States, according to the website ShoppeBlack.us.

Compounding the farmland problem is the lack of strong financial infrastructure through which not only lending can be accomplished but also trade in the securities that have underlying them black farm output.  There are approximately 45 black-owned farms located in 20 U.S. states.  There are, however, 14 black owned banks located in eleven states to support these farms.  It is a strong financial infrastructure that provides funding for land acquisition, seed, and new equipment and the current black owned facilities for lending are not enough.

Money is created when loaned funds for land acquisition, seed, and equipment are placed in a farmer’s checking account.  At this point black-owned banks could issue currency distributed by the Federal Reserve or create its own currency where a special currency is designed to be used by black farmers and any other industries related to or depending on black-owned farms including black-owned suppliers, black-owned restaurants, black-owned pharmacies and wellness stores, etc.

There is theory and there is application. With one to two trillion dollars in output, Africans in America could invest in more farmland while expanding their financial infrastructure in order to support lending, securitization of debt, and issuance of their own debt.  Where more land is not available, the next move may have to be the cultivation of intellectual capital and thus make greater inroads into the creative industry space.

On the other hand, Africans in America, rather than trying to replicate the existing model, may have to consider a completely new model for generating and trading currency, one where the resource is unique to and managed solely by Africans in America.