Author Archives: Reuters News Agency

Boston Fed’s first look at digital U.S. dollar nearly done, official says

By Jonnelle Marte

(Reuters) – The first phase of a multi-year research project the Boston Federal Reserve is doing with the Massachusetts Institute of Technology on the technology that could be used for a digital dollar is nearly done and could be released over the next month or so, a Boston Fed official said on Wednesday.

The research, dubbed “Project Hamilton,” will look at the technical challenges that need to be addressed when building a central bank digital currency, or CBDC and is separate from a discussion paper the Fed board is expected to release soon examining the policy questions surrounding a digital dollar. Both papers were initially due to be released over the summer.

The initial findings from the Boston Fed research will include open-sourced code that could serve as a potential model for a U.S. CBDC and will also focus on the system’s ability to handle a high volume of transactions, said Jim Cunha, a senior vice president with the Boston Fed, during a virtual panel focused on payments.

(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)

U.S. says it is working to screen passengers of plane carrying Americans from Kabul

By Jonathan Landay

WASHINGTON (Reuters) -The United States is working to verify the accuracy of the list of passengers aboard a charter plane carrying more than 100 U.S. citizens and lawful permanent residents evacuated from Afghanistan, the State Department said on Wednesday, after the flight’s organizers said Washington denied it landing rights.

“Our embassy staff in the UAE has been working around the clock to verify the accuracy of the passenger manifest and is coordinating with DHS/Customs and Border Protection on the ground to ensure the passengers are screened and vetted before they are permitted to fly to the United States,” a State Department spokesperson said.

“We expect the passengers to continue onward travel tomorrow morning,” the spokesperson added.

Bryan Stern, a founder of the nonprofit group Project Dynamo, said late on Tuesday that the Department of Homeland Security’s Customs and Border Protection agency was blocking a charter on an international flight into a U.S. port of entry.

Stern spoke to Reuters from aboard a plane that his group chartered from Kam Air, a private Afghan airline, that he said had been sitting for 14 hours at the Abu Dhabi airport in the United Arab Emirates after arriving from Afghanistan’s capital Kabul with 117 people, including 59 children, aboard.

The group is one of several that emerged from ad hoc networks of U.S. military veterans, current and former U.S. officials and others that formed to bolster last month’s U.S. evacuation operation they viewed as chaotic and badly organized.

“All U.S.-bound flights must follow the established safety, security and health protocols before they are cleared for departure,” a DHS spokesperson said. “This process requires flight manifests to be verified before departure to the U.S. to ensure all passengers are screened appropriately.”

President Joe Biden’s administration has said its top priority is repatriating Americans and lawful permanent residents – known as green card holders – who were unable to leave Afghanistan in the U.S. evacuation operation last month.

Twenty-eight Americans, 83 green card holders and six people with U.S. Special Immigration Visas granted to Afghans who worked for the U.S. government during the 20-year war in Afghanistan were aboard the Kam Air flight, Stern said.

Stern had planned to transfer the passengers to a chartered Ethiopian Airlines plane for an onward flight to the United States that he said the customs agency cleared to land at New York’s John F. Kennedy International Airport.

The agency then changed the clearance to Dulles International Airport outside Washington before denying the plane landing rights anywhere in the United States, Stern said.

“I have a big, beautiful, giant, humongous Boeing 787 that I can see parked in front of us,” Stern said. “I have crew. I have food.”

Stern said intermediaries in Kabul had obtained permission from the Taliban-run Afghan Civil Aviation Authority for the groups to send a charter flight to retrieve the passengers from Kabul airport.

(Reporting by Jonathan Landay; Editing by Scott Malone, Will Dunham and Stephen Coates)

Authorities say air still breathable in La Palma as lava pours into sea

LA PALMA, Spain (Reuters) -A river of lava cascaded into the Atlantic Ocean from Spain’s La Palma island in the early hours on Wednesday, releasing plumes of steam which could unleash toxic gas, although so far authorities said the air inland had not been contaminated.

Thousands of people have been evacuated since an eruption in the Canary Islands archipelago began 10 days ago. Three coastal villages had been locked down since Monday in anticipation of the lava reaching the sea and potentially liberating harmful gases.

Residents on the western coast had been told to seal doors and windows with tape and wet towels. That recommendation was not yet lifted, but authorities said measurements showed the air was so far still safe to breathe.

“The eruption has not affected air quality, which is perfectly breathable. Teams measuring the presence of gases make periodic checks and have not registered values that could be considered dangerous,” the La Palma Council said on Twitter.

Incandescent lava gushing from the volcano poured down a cliff into the sea early on Wednesday in the Playa Nueva area near the town of Tazacorte and could be seen protruding above the Atlantic Ocean waterline, sending clouds of steam into the sky.

Smoke clouds billowed from the volcano and the molten rock as it flowed down Cumbre Vieja’s western flank.

“All the people in a 2-km radius have been evacuated” and a wider area is in lockdown, Tazacorte Mayor Juan Miguel Rodriguez Acosta told TV3 channel, adding that no further evacuations had been needed so far as the cloud was moving east.

He said all roads to the southern part of the island on the western side had been cut off by the lava.

Since the eruption began on Sept. 19, lava has engulfed nearly 530 houses, as well as 1,200 land plots, mostly banana plantations. Spain classified La Palma as a disaster zone on Tuesday, a move that will trigger financial support for the island.

($1 = 1.1714 euros)

(Reporting by Miguel Pereira, Marco Trujillo, Jon Nazca, Nacho Doce and Borja Suarez in La Palma; Writing by Inti Landauro and Andrei Khalip; editing by Mark Heinrich, Giles Elgood, Peter Graff)

Myanmar currency drops 60% in weeks as economy tanks since February coup

(Reuters) – Myanmar’s currency has lost more than 60% of its value since the beginning of September, driving up food and fuel prices in an economy that has tanked since a military coup eight months ago.

Many gold shops and money exchanges closed on Wednesday due to the turmoil, while the kyat’s dive trended on social media with comments ranging from stark warnings to efforts to find some humor as yet another crisis hits the strife-torn nation.

“This will rattle the generals as they are quite obsessed with the kyat rate as a broader barometer of the economy, and therefore a reflection on them,” Richard Horsey, a Myanmar expert at the International Crisis Group, said.

In August, the Central Bank of Myanmar tried tethering the kyat 0.8% either side of its reference rate against the dollar, but gave up on Sept. 10 as pressure on the exchange rate mounted.

The shortage of dollars has become so bad that some money changers have pulled down their shutters.

“Due to the currency price instability at the moment…all Northern Breeze Exchange Service branches are temporarily closed,” the money changer said on Facebook.

Those still operating were quoting a rate of 2,700 kyat per dollar on Tuesday, compared to 1,695 on Sept. 1 and 1,395 back on Feb. 1 when the military overthrew a democratically elected government led by Nobel Laureate Aung San Suu Kyi.

WORLD BANK WARNS ECONOMY TO SLUMP 18%

The World Bank predicted on Monday the economy would slump 18% this year and said Myanmar would see the biggest contraction in employment in the region and the number of poor would rise.

The increasing economic pressures come amid signs of an upsurge in bloodshed, as armed militias have become bolder in clashes with the army after months of protests and strikes by opponents of the junta.

“The worse the political situation is, the worse the currency rate will be,” said a senior executive at a Myanmar bank, who declined to be identified.

Myanmar is also struggling to deal with a second wave of coronavirus infections that started in June with the response by authorities crippled after many health workers joined protests. Reported cases have comes off their highs though the true extent of the outbreak remains unclear.

In the immediate months after the Feb. 1 coup, many people queued up to withdraw savings from banks and some bought gold, but a jewelry merchant in Yangon said many desperate people were now trying to sell their gold.

The central bank gave no reason to why it abandoned its managed float strategy earlier this month, but analysts believe its foreign currency reserves must be seriously depleted.

Central bank officials did not answer calls seeking comment, but World Bank data shows it had just $7.67 billion in reserves at the end of 2020.

After coming off its managed float, the central bank still spent $65 million, buying kyat at a rate of 1,750 to 1,755 per dollar between Sept. 13-27.

The bank executive said the central bank’s efforts had limited impact in a currency market shorn of confidence.

The economic crisis has driven up the price of staples, and the UN Office for the Coordination of Humanitarian Affairs said this week that around three million people now require humanitarian assistance in Myanmar, up from one million before the coup.

In a country where gross domestic product per capita was just $1,400 last year, a 48-kg bag of rice now costs 48,000 kyat, or around $18, up nearly 40% since the coup, while gasoline prices have nearly doubled to 1,445 kyat per liter.

“If you have money, you buy gold, you buy dollars, you buy (Thai) baht. If you do not have money, you will starve,” said Facebook user Win Myint in a post.

(Reporting by Reuters Staff; Writing by Ed Davies; Editing by Simon Cameron-Moore and Nick Macfie)

Afghan central bank drained dollar stockpile before Kabul fell

By John O’Donnell and Rupam Jain

FRANKFURT/MUMBAI (Reuters) – The Afghan central bank ran down most of its U.S. dollar cash reserves in the weeks before the Taliban took control of the country, according to an assessment prepared for Afghanistan’s international donors, exacerbating the current economic crisis.

The confidential, two-page brief, written early this month by senior international economic officials for institutions including the World Bank and International Monetary Fund, said the country’s severe cash shortage began before the Taliban took control of Kabul.

It criticized how the central bank’s former leadership handled the crisis in the months before the Taliban’s conquest, including decisions to auction unusually large amounts of U.S. dollars and move money from Kabul to provincial branches.

“FX (foreign exchange) reserves in CB’s (central bank) vaults in Kabul have depleted, the CB cannot meet … cash requests,” the report, seen by Reuters, said.

“The biggest source of the problem is the mismanagement at the central bank prior to the Taliban takeover,” it added.

Shah Mehrabi, chairman of the central bank’s audit committee who helped oversee the bank before the Taliban took over and is still in his post, defended the central bank’s actions, saying it was trying to prevent a run on the local Afghani currency.

The extent of the cash shortage can be seen on the streets of Afghan cities, where people have been queuing for hours to withdraw dollar savings amid strict limits on how much they can take out.

Even before the shock of the Western-backed government’s collapse, the economy was struggling, but the return of the Taliban and abrupt end of billions of dollars in foreign aid has left it in deep crisis.

Prices for staples like flour have spiraled while work has dried up, leaving millions facing hunger as winter approaches.

AID DRIES UP

Under the previous government, the central bank relied on cash shipments of $249 million, delivered roughly every three months in boxes of bound $100 notes and stored in the vaults of the central bank and presidential palace, according to three people with direct knowledge of the matter.

That money has dried up as foreign powers shy away from dealing directly with the Taliban, which fought against foreign troops and the ousted government. Thousands of people – many of them civilians – died.

The central bank, which plays a key role in Afghanistan because it distributes aid from countries like the United States, said on Wednesday it had finalized a plan to meet the country’s foreign currency needs. It gave no details.

The hard currency crunch is making it difficult for the Taliban to meet basic needs, including paying for power or dispersing salaries to government employees, many of whom have not been paid in months.

Afghanistan’s roughly $9 billion of offshore reserves were frozen as soon as the Taliban captured Kabul, leaving the central bank with just the cash in its vaults.

According to the report, the central bank auctioned off $1.5 billion between June 1 and Aug. 15 to local foreign exchange dealers, which it said was “strikingly high”.

“By August 15, the Central Bank had an outstanding liability of $700 million and 50 billion Afghanis ($569 million) towards the commercial banks,” it said, adding that this had been a major factor in emptying its coffers.

Afghan central bank official Mehrabi said, however, that although almost $1.5 billion of auctions had been announced, the actual amount sold was $714 million.

He said the central bank had “continued its foreign exchange auction to reduce the depreciation and inflation.”

MONEY MISSING?

The report also questioned a decision by the central bank to shift some of its reserves to provincial branches, putting it at risk as Taliban militants made advances across the country from late 2020 in the runup to their victory.

It said around $202 million was kept in these branches at the end of 2020, compared with $12.9 million in 2019, and that the cash was not moved as provinces started to fall to the insurgents.

“Some money is reportedly lost (stolen) from ‘some’ of the provincial branches,” the report said, without specifying how much.

Mehrabi said the central bank was investigating money “stolen” from three of its branches, although not by the Taliban. He gave no further details.

Former central bank governor Ajmal Ahmady, who left the country the day after Kabul fell, did not respond to emails and other messages requesting comment on his and the bank’s actions in the months before the Taliban returned to power.

Ahmady has said on Twitter in recent weeks that he did his best to manage the situation, and blamed any cash shortfall on the freezing of central bank assets abroad.

In his statements, he also said the central bank had managed the economy well prior to the fall of Kabul and that he felt bad about leaving staff behind but feared for his safety. He has said no money was stolen from any reserve account.

($1 = 87.8700 Afghanis)

(Additional reporting by James Mackenzie; writing By John O’Donnell; Editing by Mike Collett-White)

British army to start driving tankers as queues for fuel continue

By Guy Faulconbridge

LONDON (Reuters) -British soldiers will start driving tankers to replenish empty pumps, as drivers queued again for fuel after days of shortages, despite Prime Minister Boris Johnson saying the situation was improving.

Britain has been gripped by a rush of panic-buying for almost a week that has left pumps dry across major cities, after oil companies warned they did not have enough tanker drivers to move petrol and diesel from refineries to filling stations.

Business minister Kwasi Kwarteng said 150 soldiers had been mobilized, and would be driving tankers within a few days.

“The last few days have been difficult, we’ve seen large queues. But I think the situation is stabilizing, we’re getting petrol into the forecourts. I think we’re going to see our way through this,” Kwarteng said.

Johnson has sought to quell concerns, saying supplies were returning to normal while also urging people not to panic buy.

A shortage of around 100,000 drivers has sown chaos through supply chains and raised the specter of empty shelves and price increases at Christmas.

Asked if he could guarantee that there would not be problems in the run-up to the busy retail period, Kwarteng said: “I’m not guaranteeing anything. All I’m saying is that, I think the situation is stabilizing.”

By the early morning rush hour there were already long queues of cars in and around London and on the busy M25 orbital motorway circling the capital. Signs were up at some sites announcing no fuel was available.

The gridlock has sparked calls for doctors, nurses and other essential workers to be given priority access to fuel, a move Johnson has resisted.

Industry groups said the worst of the shortages seemed to be in London, the southeast and other English cities. Fights have broken out as drivers jostled.

The Petrol Retailers Association (PRA), which represents independent retailers who account for about two-thirds of all the 8,380 UK filling stations, said on Tuesday 37% its members’ stations were out of fuel.

The shortages have added to an air of chaos in the world’s fifth-largest economy, leaving gaps on supermarket shelves. A spike in European wholesale natural gas prices has also tipped energy companies into bankruptcy.

Britain left the EU single market at the start of this year, preventing haulers from recruiting drivers in the bloc. To tackle the shortage, the government has said it will issue temporary visas to 5,000 foreign drivers, a measure it had previously ruled out.

“What we want to do is make sure that we have all the preparations necessary to get through until Christmas and beyond, not just in supplying the petrol stations but all parts of our supply chain,” Johnson said.

Haulers, petrol stations and retailers say there are no quick fixes as the shortfall of drivers is so acute, and transporting fuel demands training and licensing. European drivers may also be reluctant to take up the visa offer, which only lasts until Dec. 24.

(Reporting by Guy Faulconbridge; Writing by Kate Holton; Editing by Michael Holden and Peter Graff)

Russia arrests top cybersecurity executive in treason case

By Tom Balmforth and Anton Zverev

MOSCOW (Reuters) -Russian authorities have arrested the chief executive of a leading Russian cybersecurity company on suspicion of state treason, a court said on Wednesday, sending a chill through Russia’s IT and business sectors.

Ilya Sachkov, 35, who founded Group IB, one of Russia’s most prominent cyber security firms, was arrested on Tuesday, the RTVI TV channel reported as law enforcement officers carried out searches at the Moscow offices of the firm.

State news agency TASS cited an unnamed security source as saying Sachkov was accused of working with unspecified foreign intelligence services and of treason that hurt Russia’s national interests. He denied both allegations, it said.

Group IB said in a statement it was sure Sachkov was not guilty of the allegations, but that it was unable to comment further on them. There was no official comment about the case from the security services.

Moscow’s Lefortovo district court said it had ordered Sachkov to be held in custody for two months.

State treason is punishable by up to 20 years in jail. The details of such cases seldom come to light in full because of their classified nature.

Global IB focuses on investigating high-tech crimes and online fraud, with a global client base that includes banks, energy companies, telecoms firms and Interpol.

More searches took place at the St Petersburg offices of Group IB and other unnamed companies on Wednesday, the RIA news agency cited a security source as saying.

Sachkov is a well-known figure in the business and IT sectors and has also met President Vladimir Putin at least once.

He is the latest in a long series of people, including scientists, soldiers, officials and a former journalist, to be accused of treason in recent years.

Boris Titov, presidential commissioner for entrepreneurs’ rights, called on investigators to disclose information about the case against Sachkov.

The Kremlin rejected the idea the case could hurt Russia’s business climate during a conference call and said it was linked to state treason, not business.

Group IB said the searches at its offices had begun on Tuesday morning, with law enforcement officials leaving that same evening. It said it had no information about why the searches were being conducted.

The RTVI TV channel said Sachkov had been detained on Tuesday, citing a source in law enforcement. An RTVI correspondent also reported that men were dragging things from Group IB’s office to a van parked outside.

Group IB said all services were still running as normal and that the security of client data was ensured by the company’s geographically distributed infrastructure.

(Reporting by Anton Kolodyazhnyy, Anton Zverev, Alexander Marrow; Writing by Tom Balmforth; Editing by Andrew Osborn and Nick Macfie)

Thai rescuers battle floodwaters to reach dozens stranded in homes

BANGKOK (Reuters) – Rescuers in northeastern Thailand waded through fast-flowing floods to rescue dozens of people stranded in their homes on Wednesday, as authorities tried to drain away waters and get more help to victims.

At least seven people have died and another is missing in floods over the last week that have affected almost 200,000 households in 30 provinces in the lower north and northeastern Thailand.

Rescuers wearing orange helmets and lifejackets travelled by boats through submerged streets in the northeastern province of Chaiyaphum to reach people stuck on the roofs of their homes.

Video posted on social media by the Hook 31 private rescue team showed them wading carefully against a current of brown water as high as the windows of abandoned cars, some carrying children on their backs and escorting the elderly along a series of guide ropes.

Authorities have issued warnings over the rising water level of the Chaophraya river that could bring flooding to the capital Bangkok and surrounding areas.

The government has reassured the public that the situation is manageable and there will be no repeat of the devastating months-long flooding of 2011, which killed hundreds of people, damaged vast swathes of farmland and paralyzed Bangkok and its industrial belt.

(Reporting by Panu Wongcha-um, Juarawee Kittisilpa and Panarat Thepgumpanat; Editing by Martin Petty and Barbara Lewis)

El Salvador women march against abortion laws amid planned Latin America-wide protests

By Ana Isabel Martinez and Gerardo Arbaiza

SAN SALVADOR (Reuters) – Scores of people in El Salvador waved green flags and marched through the capital San Salvador en route to Congress to demand loosening of the country’s “strict” abortion laws, with similar protests planned across Latin American cities.

Holding up banners saying “it’s our right to decide” and “legal abortion, safe and free,” the mostly-women protesters met as part of the “International Safe Abortion Day” being marked around the globe.

The Salvadoran protesters sought to pressure the country’s legislators to ease one of the world’s strictest abortion laws, which prohibit termination of pregnancy in cases of rape and even if the mother’s life is at risk.

The proposals taken to the Salvadoran Congress have been named “Beatriz Reform,” in honor of a young woman who in 2013 openly called for an abortion to save her life as she suffered from a chronic disease, which took her life four years later.

“We are asking for minimum measures to add to the Penal Code to guarantee the life and integrity of women,” Morena Herrera, a prominent Salvadoran feminist, told journalists.

“It does not require constitutional reform. It can be done now and if it is true that there is independence of powers, the Legislative Assembly must respond,” she added.

Salvadoran President Nayib Bukele earlier this month ruled out any amendments to the abortion laws as part of controversial constitutional changes his government is planning.

Protests are also planned later in the day in Colombia and several cities in Mexico and Chile.

Sweeping changes across the predominantly Roman Catholic region have seen abortion law amended in some nations, including Argentina and parts of Mexico.

But several out of more than 20 Latin American nations still ban abortion outright, including El Salvador, which has sentenced some women to up to 40 years in prison.

Mexican authorities have put up protective fences on key buildings and emblematic monuments across several cities where women are expected to hold rallies. In the past, protesters have painted over historic monuments.

Protesters were also gathering in the Chilean capital Santiago, where legislators have been discussing plans for a bill that would expand the legal access for women to get abortions.

(Reporting by Ana Isabel Martinez in Mexico City and Gerardo Arbaiza in San Salvador; Editing by Drazen Jorgic and Sandra Maler)

Factbox-Latest on the worldwide spread of the coronavirus

(Reuters) – Japan will lift a state of emergency in all regions on Thursday as the number of new cases falls, while India reported the smallest daily rise in COVID-19 deaths since mid-March.

DEATHS AND INFECTIONS

EUROPE

* Sweden will offer additional groups, including people aged 80 and above, to top up their COVID-19 vaccinations with a third dose, the Nordic country’s health minister said.

* Italy’s health ministry said on Tuesday it had given the go-ahead for travel to six non-European tourist spots without the need for quarantine as a COVID-19 precaution either on arrival or return.

AMERICAS

* New York hospitals began firing or suspending healthcare workers for defying a state order to get the COVID-19 vaccine, and resulting staff shortages prompted some hospitals to postpone elective surgeries or curtail services.

* Brazil will provide COVID-19 vaccine booster shots to all its people over 60-years-old, Health Minister Marcelo Queiroga said.

* A Brazilian hospital chain tested unproven drugs on elderly COVID-19 patients without their knowledge as part of an effort to validate President Jair Bolsonaro’s preferred ‘miracle cure,’ a lawyer for whistleblowing doctors told senators on Tuesday.

* Authorities in Costa Rica said on Tuesday all state workers will need to be vaccinated against COVID-19, making it one of the first countries in Latin America to impose a coronavirus vaccination mandate.

ASIA-PACIFIC

* China administered about 3.0 million doses of COVID-19 vaccines on Sept. 27, bringing total doses to 2.203 billion, data from the National Health Commission showed.

* India’s drug regulator has allowed vaccine maker Serum Institute to enroll kids aged 7-11 years for its trial of U.S. drugmaker Novavax’s COVID-19 vaccine.

* Sydney residents who are not vaccinated against COVID-19 risk being barred from various social activities even when they are freed from stay-at-home orders in December.

MIDDLE EAST AND AFRICA

* Egypt is now providing immediate COVID-19 vaccinations at youth centers across the country without prior online registration, a step aimed at encouraging vaccinations and relieving pressure on hospitals and health units amid a fourth wave of infections.

* Algeria will start production of COVID-19 vaccine Sinovac in partnership with China on Wednesday with the aim of meeting domestic demand and exporting the surplus, the prime minister’s office said on Tuesday.

MEDICAL DEVELOPMENTS

* Pfizer and BioNTech have submitted initial trial data for their COVID-19 vaccine in 5-11 year old’s and said they would make a formal request with U.S. regulators for emergency use in the coming weeks.

* Sanofi is dropping plans for its own mRNA-based COVID-19 vaccine because of the dominance achieved by BioNTech-Pfizer and Moderna in using the technology to fight the pandemic, the company said.

* As Merck & Co and Pfizer prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own.

ECONOMIC IMPACT

* Global shares fell for a third successive day on Tuesday, with tech stocks plummeting, as anxiety over when central banks might raise interest rates led to rising bond yields on both sides of the Atlantic.

* Profits at China’s industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month, as manufacturers struggled with high commodity prices, COVID-19 outbreaks and shortages of some key components.

* The East Asia and Pacific region’s recovery has been undermined by the spread of the Delta variant, which is likely slowing economic growth and increasing inequality in the region, the World Bank said.

(Compiled by Ramakrishnan M., Vinay Dwivedi and Juliette Portala; Edited by Arun Koyyur and Shounak Dasgupta)