Last Friday the People's Bank of China announced an increase in banks’ reserve ratios, excluding rural banks and co-operatives, by half a percentage point. The increase will be effective from July 5. The people’s Bank’s announcement follows a continued rise in investments, which are up 13.3% on last year. Money supply also increased and faster than the expected rate of 19% during the first five months of the year. The 27 basis point increase in the interest rate two months ago has so far not been able to control growth in money supply and investment.
Colombia’s telecoms industry has received $500 million of investment since 2002, including $178 million in broadband installation across 60 municipalities USD 178 million in installing broadband in 60 municipalities, and $300 million invested by Movistar in its GSM network.
JPMorgan’s Emerging Markets Bond Index (EMBI) spread stood at 219 on Friday. The countries trading at the biggest spreads were Ecuador (506) and Argentina (373),, and those with the smallest spreads were Egypt (79) and Poland (62). The Latin America spread was 237; Africa, 126; Asia, 263; and Europe, 171.
Romania registered GDP per capita was one of the lowest in Europe last year, although the economy was one of the region’s fastest growing between 2002 and 2005, the World Bank has said. Romania’s per capita income was $4568 in 2005, compared to $17,929 in Slovakia and $12,254 in the Czech Republic. The World Bank revised own its growth estimate for Romania this year from 6% to 5.2%. Romania’s inflation averaged 14.4% between 2002 and 2005.