The Knowledge to Decide

Prime Minister Narendra Modi recently moved ahead to demonetize high-value currencies in November 2016 in a calculated approach to eradicate black money from the country. INR500 and INR1,000 notes became invalid – these account for 86% of currency in circulation. Amidst the immediate effect on consumption, sectors incurring major setbacks include real estate, construction, jewelry, high-end retail, travel and tourism. However, the long-term economic benefits include higher tax revenues that will create a better business environment with higher transparency and minimized corruption. Banks will see large inflows. Inflation may trend lower leading to drop in interest rates. Are there unforeseen ramifications of demonetization in India? https://www.spireresearch.com/newsroom/spirethoughts/demonetization-in-india/

Britain still attracts substantial investment from Asia. Many Asian firms have established European Head Quarters in the country. How hard will Brexit hit Asian markets? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in China Daily – Asia Weekly. Brexit will impact companies from Asia with operations in the UK, since they will no longer benefit from any of the EU’s Free Trade Agreement’s (FTA) with non-EU countries. Britain will need to replace these with bilateral FTAs – and fast. Perera noted that beyond the short-term effects on foreign exchange markets and global capital, the effect will be to depress the long-term outlook for the UK. Having said that, Brexit may induce portfolio managers to divert funds to Asia. This could strengthen Asian asset prices and currencies. What remains to be seen is if any city can replace London as the financial center of the EU. https://www.spireresearch.com/newsroom/media/how-will-br

As use of mobile wallets grows across Asia, digitalized financial services are transforming consumer behavior. In this context, Informa Business (IBC) organized the 4th Annual Mobile Wallet Conference to discuss key industry trends, opportunities and challenges in Jakarta, Indonesia. Jeffrey Bahar, Deputy Chief Executive Officer of the Spire Research and Consulting group, was honored to be a guest speaker at this event. In his presentation, Bahar highlighted key facts about the mobile wallet ecosystem in Asia with focus on consumer trends, growth drivers and acceptance of digital currency. Bahar mentioned the rise mobile wallet payments is due to faster transactions (71%), ease of use (55%) and the need to have cash on hand (47%). There are more opportunities for organizations, regulators and startups due to the convergence of multi-channel integration, integrated IT infrastructure, digital currencies and Big data analytics, to name a few trends. The Philippines beca

The new kid on the block for digital currency – Bitcoin – is being widely used for electronic transactions across emerging markets. The rate of adoption is so fast that the number of merchants accepting bitcoin is growing close to 10% a day worldwide. For emerging markets such as Kenya, Bitcoin comes as a blessing, since PayPal is absent and Bitcoin charges only a nominal fee for money transfers (one per cent or less of the amount being transferred). Industry players from emerging markets also stand to benefit from the Bitcoin ecosystem expansion. For instance, Bitcoin China (BTC) – one of the world’s largest digital exchanges – raised USD5 million through funding from venture capitalists in November 2013. Will Bitcoin become the alternate currency for consumers worldwide? https://www.spireresearch.com/newsroom/spirethoughts/bitcoin-builds-momentum-in-emerging-markets/