Read more about the article Fiscal Space in African Economies and Base Erosion and Profit Shifting (BEPS)

Fiscal Space in African Economies and Base Erosion and Profit Shifting (BEPS)

Base erosion and profit shifting (BEPS) involving multinational companies is a complex, multi-dimensional problem resulting from loopholes and inconsistencies between countries’ tax systems. Addressing it requires coordinated action at the international level. Several organizations have taken initiatives in this direction, including the Organization for Economic Co-operation and Development (OECD), which, with the support of the G20, launched an ambitious project to combat BEPS in 2013. The OECD has proposed 15 measures to strengthen international tax rules in various areas, including transfer pricing, combating harmful tax practices, preventing treaty abuse, and promoting transparency and tax information exchange. This study analyzes the challenges related to the fiscal space in Africa and examines the impact of BEPS on African economies. We examine the factors that exacerbate BEPS in the region, including the absence of relevant international tax laws, the dynamics of tax treaty negotiations, and limited tax administration capacity. We will also assess the negative impact of BEPS in Africa and discuss current initiatives to address BEPS in Africa, such as those proposed by the OECD. Finally, we discuss the challenges and offer policy recommendations for increasing fiscal space and reducing BEPS in Africa.

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Read more about the article Por que cresce o uso de moedas locais em pagamentos internacionais

Por que cresce o uso de moedas locais em pagamentos internacionais

Pares de países têm acordado liquidar transações comerciais e financeiras entre si em suas moedas locais, em geral mediante acordos bilaterais entre seus bancos centrais. A China tem sido capaz de usar sua moeda para liquidar metade de suas transações externas de comércio e investimento. O uso crescente de moedas locais em pagamentos externos será parte do que já chamamos aqui de “desdolarização devagar e limitada”. A “fragmentação” parcial do sistema global de pagamentos está em curso.

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Read more about the article Rising Use of Local Currencies in Cross-Border Payments

Rising Use of Local Currencies in Cross-Border Payments

Pairs of countries have agreed to settle commercial and financial transactions with each other in their local currencies, usually facilitated through bilateral agreements between their central banks. China has been able to use its currency to settle half of its foreign trade and investment transactions. The growing use of local currencies in external payments will be part of what we have already called a “slow and bounded de-dollarization”. A partial fragmentation of the global payments system is underway.

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