Lao Central Bank Tightens Monetary Policy To Curb Inflation Rate

VIENTIANE, Jun 7 (NNN-KPL) – The Lao central bank, Bank of the Lao P.D.R. (BOL), made changes to its reserve requirement level and base interest rate, as announced by the bank’s governor.

The move is aimed at reducing the amount of money in circulation and curbing the spiraling inflation rate, which was recorded at 9.9 percent in Apr, local daily Vientiane Times, reported.

Governor of BOL, Sonexay Sithphaxay, recently signed a two-page BOL decision, regarding the adjustment to the bank’s reserve requirement.

Under the decision, the reserve requirement will increase from three percent to five percent, for the Lao currency, kip, but will remain at five percent for foreign currencies.

The decision is aimed at ensuring the financial liquidity of the banking system and minimising the risks that could impact the banking sector, while regulating and sustaining the quality of credit, to reflect the reality of the macroeconomic situation.

Raising the reserve requirement means that the central bank can reduce money supply, which should enable it to better control money supply and curb inflation, as well as, respond to the nation’s economic woes.

Over the past two years, the central bank has made two adjustments to its reserve requirement level, in response to the changing needs of the country’s fiscal situation.

In Mar, 2020, the BOL cut the kip reserve requirement from five percent to four percent, and from 10 percent to eight percent for foreign currencies.

In 2021, the bank made another change to its reserve requirement by reducing it from four percent to three percent for kip and from eight percent to five percent for foreign currencies.

With regard to the policy rate change, the bank increased the base interest rate for loans of less than seven days from three percent to 3.1 percent, for loans issued in kip.

In addition, the bank cancelled interest rate on 7-14 day loans and the interest rate on loans issued for periods of 14 days to one year.

The bank said, the adjustment to the base interest rate would serve as an important reference for commercial banks in following the new policy rate.

Source: NAM NEWS NETWORK

Vietnam’s Chemical Imports Up 30.2 Percent In Jan-May

HANOI – Vietnam spent over 4.1 billion U.S. dollars importing chemicals, and nearly 3.7 billion U.S. dollars importing chemical products, in the first five months of this year, up 30.2 percent and 25.1 percent, year on year, respectively.

In the period, the country exported roughly 1.4 billion dollars’ worth of chemicals and 980 million dollars’ worth of chemical products, surging 65 percent and 29.9 percent, respectively, according to the General Department of Vietnam Customs yesterday.

In 2021, Vietnam spent more than 7.6 billion U.S. dollars, importing chemicals, and nearly 7.7 billion U.S. dollars, importing chemical products, mainly from China, said the department.

Source: NAM NEWS NETWORK

US, South Korea Hold Massive Air Drill Following North Korean Launches

South Korea and the United States held an air power demonstration involving 20 fighter jets Tuesday, the allies’ latest display of military strength amid signs North Korea may soon conduct a nuclear test.

The drill, held in the sea off South Korea’s western coast, was in response to North Korea’s unprecedented launch of eight ballistic missiles Sunday, according to a statement from South Korea’s Ministry of National Defense.

Pictures released by South Korea’s military showed the aircraft flying in a tight, triangular formation. The exercise involved 16 South Korean fighter jets — including the F-35A, F-15K, and KF-16 — and four F-16 fighters from the U.S. Air Force, according to Seoul.

“The ROK-US has demonstrated its strong ability and willingness to strike against North Korea’s provocations quickly and accurately,” the South Korean military said. The two countries are watching for further provocations by North Korea, it added.

North Korea on Sunday fired eight short-range ballistic missiles into the sea over a 35-minute period, according to South Korea’s military. It was North Korea’s 18th round of missile launches this year.

On Monday, the United States and South Korea responded by launching eight missiles of their own into the ocean.

South Korea and the United States have increased public displays of military power in response to intensified North Korean missile tests.

South Korea’s new conservative president, Yoon Suk Yeol, has vowed to respond quickly and firmly to what he describes as North Korean provocations.

During a summit last month, Yoon and U.S. President Joe Biden discussed holding bigger joint military exercises, which had been scaled back under the previous South Korean government.

There are also signs that North Korea could soon conduct its seventh nuclear test, a step that could further raise regional tensions.

On Monday, Rafael Mariano Grossi, the director general of the International Atomic Energy Agency, said one of the tunnel entrances have been opened at North Korea’s nuclear test site, possibly in preparation for a nuclear test.

Such a test, he said “would contravene U.N. Security Council resolutions and would be a cause for serious concern.”

North Korea is in the middle of one of its busiest ever years for weapons tests. It is attempting to make progress on a weapons development wish list laid out by leader Kim Jong Un in 2021.

Source: Voice of America

How Should US Respond to a North Korean Nuclear Test?

The United States has warned of “a swift and forceful response” if North Korea conducts a nuclear test. Such a reaction, experts say, must include bolstering South Korean defenses while targeting Chinese and Russian entities and individuals supporting Pyongyang’s weapons programs.

In Seoul on Tuesday, after meeting with South Korea’s First Vice Foreign Minister Cho Hyun-dong, U.S. Deputy Secretary of State Wendy Sherman said, “There would be a swift and forceful response” to a North Korean nuclear test.

At a meeting in Vienna on Monday, Rafael Grossi, director general of the International Atomic Energy Agency, said North Korea was gearing up for a possible nuclear test as one of the tunnel entrances had been “reopened” at its Punggye-ri nuclear test site.

Signs of preparation for a nuclear test have been visible via satellite since March at Punggye-ri, which Pyongyang shut down in 2018 in front of foreign journalists invited to watch its dismantlement.

At a press briefing on Monday, State Department spokesperson Ned Price said the U.S. is concerned Pyongyang will conduct a nuclear test “in the coming days.”

“It is a contingency we have planned for” with allies and partners, Price added.

Tensions have been mounting on the Korean Peninsula following Pyongyang’s launch of eight short-range ballistic missiles on Sunday. It was Pyongyang’s 18th round of weapons tests this year.

The U.S. and South Korean militaries responded by firing eight ballistic missiles on Monday and staging a show of force with fighter jet drills over the Yellow Sea, also known as the West Sea, on Tuesday.

Counterstrategy

A North Korean nuclear test, which would be the country’s seventh since 2006 and its first since September 2017, should be met by reinforcing defenses around the Korean Peninsula, experts said.

“It is imperative that the U.S. demonstrates strategic reassurance and strategic resolve, which it has been doing during this year of North Korean missile launches,” said David Maxwell, a senior fellow at the Foundation for Defense of Democracies.

President Joe Biden and South Korean President Yoon Suk Yeol agreed at their summit on May 21 to deploy strategic U.S. assets “in a timely and coordinated manner as necessary” as well as “to reinforce deterrence in the face of [North Korea’s] destabilizing activities,” according to a joint statement released by the White House. Strategic assets include aircraft carriers and nuclear-powered submarines.

The two leaders also agreed to start discussions to expand joint military drills around the Korean Peninsula. Chinese and Russian bombers and fighter jets entered the Korea air defense identification zone in the Sea of Japan, approaching but coming short of violating South Korea’s airspace, when Biden was in Tokyo after visiting Seoul on his Asian tour. China and Russia have also increased their military activities around Japan recently as well.

Lawrence Korb, a senior fellow at the Center for American Progress think tank and a former U.S. assistant secretary of defense, said Washington and Seoul should “hold more military exercises and put a carrier task force and a ballistic missile submarine in the area to send a signal” to North Korea that any use of nuclear weapons will come with a price.

South Korea’s military said on Saturday it had launched military drills with the U.S. in the waters off Okinawa, Japan, and that for the first time in more than four years, the exercises involved a U.S. aircraft carrier — in this case, the nuclear-powered USS Ronald Reagan, according to Reuters.

Under Yoon’s predecessor Moon Jae-in, who promoted inter-Korean reconciliation efforts, large-scale joint drills, that Pyongyang sees as invasion exercises, were either scaled down or canceled.

Victor Cha, a senior vice president and Korea chair at the Center for Strategic and International Studies who led negotiations with North Korea under the George W. Bush administration, said that “trilateral exercises” including Japan “would also be useful to deter unilateral actions by China, Russia, or the DPRK” since “the Korean and Japanese security theaters are interlinked.” Cha used the acronym for North Korea’s official name, the Democratic People’s Republic of Korea.

“If Russia and China are making air and sea incursions into South Korea or into Japan, that should be of concern to both countries,” Cha said.

Sanctions

Experts also said the U.S. should respond to any Pyongyang nuclear test by imposing unilateral sanctions on entities and individuals operating in China and Russia in support of North Korea’s weapons programs.

Joshua Stanton, a Washington-based attorney who helped draft the North Korea Sanctions Enforcement Act of 2016, said North Korean leader “Kim Jong Un’s money-laundering networks have thousands of agents and front companies overseas.”

He continued, “Many of them are in Russia and China, and most of them are controlled by entities that are already designated by the U.N. They must be blocked” from access to the international financial system.

China and Russia, as U.N. Security Council permanent members with veto powers, blocked a new U.S.-led resolution calling for more sanctions on North Korea at the United Nations on May 26.

U.S. Ambassador to the U.N. Linda Thomas-Greenfield said at a May 31 press briefing that the U.S. would “push for additional sanctions” if North Korea conducts a nuclear test.

Beijing and Moscow, however, are unlikely to pass another resolution on North Korea, experts say, even if the regime conducts a nuclear test, unlike in 2016 and 2017 when they voted in favor of U.N. resolutions in response to Pyongyang’s fourth, fifth and sixth nuclear tests.

U.S. Special Representative for North Korea Sung Kim said on Tuesday via teleconference from Jakarta, Indonesia, that the U.S. was preparing for a U.N. General Assembly meeting on Wednesday where Beijing and Moscow will “have an opportunity to explain why they vetoed the resolution” on North Korea.

If the Security Council remains stymied on North Korea, said Anthony Ruggiero, a senior fellow at the Foundation for Defense of Democracies, “U.S. sanctions can be used to implement U.N. sanctions” by targeting North Korean, Chinese and Russian companies, individuals and banks that aid Pyongyang’s sanctions evasion.

At the briefing on Monday, Price said the U.S. and “our partners and allies have authorities that we can coordinate just as we work on defense and deterrence together with our partners in the region.” He was alluding to sanctions the U.S. could impose in coordination with other willing countries.

Doug Bandow, a senior fellow at the Cato Institute, said that other than unilateral sanctions that Washington tends to resort to as “America’s first response to North Korean provocations,” the Biden administration “has no good options” after a nuclear test.

“Sanctions so far have not changed the North’s policies and aren’t likely to have any greater impact now,” he said.

Suzanne DiMaggio, a senior fellow at the Carnegie Endowment for International Peace, said, “Now it appears we’re about to enter a fraught period, and U.S. options are limited at best.”

Source: Voice of America

Philippines, Bulusan Volcano Eruption (REGION V) (5 Jun 2022)

Sorsogon, Philippines

Event Date : Sun, 05 Jun 2022

AHADID : AHA-VO-2022-000638-PHL | GLIDE Number:

Impact Update Date : Sun, 05 Jun 2022 10:37:00

AFFECTED AREA/S

Sorsogon

DESCRIPTION

At 10:37AM, 05 June 2022 a phreatic eruption Bulusan Volcano (12.7667°N, 124.0500°E) summit that lasted approximately 17 minutes and was recorded by seismic and infrasound monitoring by the Bulusan Volcano Network (BVN). The event was poorly visible through cloud cover over the edifice although a steam-rich grey plume at least one (1) kilometer tall was observed from Juban, Sorsogon and was subsequently observed to drift west. Ashfall has been reported in Juban and Casiguran, Sorsogon. Prior to the eruption, the BVN recorded 77 volcanic earthquakes in the past 24-hour observation period. Ground deformation data from continuous GPS monitoring indicate that the Bulusan edifice has been inflated since February 2021, while electronic tilt monitoring recorded a sudden but isolated inflation of the southeast lower slopes only since April 2022. These parameters indicate that volcanic processes are underway beneath the edifice that are likely caused by shallow hydrothermal activity.

Alert Level 1 status is now raised over Bulusan Volcano, which means that it is currently in an abnormal condition. Local government units and the public are reminded that entry into the 4-kilometer radius Permanent Danger Zone (PDZ) must be strictly prohibited and that vigilance in the 2-kilometer Extended Danger Zone (EZ) in the southeast sector must be exercised due to the increased possibilities of sudden and hazardous phreatic eruptions. Civil aviation authorities must also advise pilots to avoid flying close to the volcano’s summit as ash from any sudden phreatic eruption an be hazardous to aircraft. Furthermore, people living within valleys and along river-stream channels especially on the southeast, southwest and northwest sector of the edifice should be vigilant against sediment-laden stream flows and lahars in the event of heavy and prolonged rainfall should phreatic eruption occur. DOST-PHIVOLCS is closely monitoring Bulusan Volcano’s condition.

AFFECTED POPULATION:

-50 families and 180 individuals were affected in 10 barangays.

SUSPENSION OF CLASSES:

-1 municipality suspended classes in 3 schools.

Source: ASEAN Coordinating Centre for Humanitarian Assistance

Indonesia, Flooding in Kendal Regency (Central Java) (6 Jun 2022)

Jawa Tengah, Indonesia

Event Date : Mon, 06 Jun 2022

AHADID : AHA-FL-2022-000640-IDN | GLIDE Number:

Impact Update Date : Mon, 06 Jun 2022 17:45:00

AFFECTED AREA/S

Kendal

DESCRIPTION

Cause: Heavy rainfall and overflowing of Kencar River

Location: Kec. Pegandon, Ds. Dawungsari

Efforts: BPBD Kendal Regency coordinate with related agencies to conduct data collection

Latest Condition: Flood has receded

Source: ASEAN Coordinating Centre for Humanitarian Assistance