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UN Sec Council to demand vote on siege of Sudanese city

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According to diplomats on Wednesday, the UN Security Council is expected to vote on a resolution sponsored by the British that calls for an end to the paramilitary Rapid Support Forces (RSF) blockade of al-Fashir in Sudan’s North Darfur area on Thursday.

De-escalation in and around the city, an immediate end to hostilities, and the evacuation of all fighters who pose a threat to civilian safety and security are all demanded in the draft text.

Meanwhile, on Thursday, Britain requested that the 15-member council have a vote on the draft. For a resolution to be passed, it must receive nine votes in favour and not be vetoed by China, Russia, the US, the UK, or France.

The worst displacement crisis in history was caused by a war that broke out in April of last year in Sudan between the Sudanese Army (SAF) and the Rapid Support Forces (RSF).

The final significant city outside of the RSF’s dominion in the vast western Darfur region is Al-Fashir. After storming through four more Darfur state capitals last year, the RSF and its supporters were held accountable for a wave of abuses and racially motivated killings in West Darfur against non-Arab populations.

About 800,000 people in al-Fashir are in “extreme and immediate danger,” according to top U.N. officials who warned the Security Council in April, as the violence escalates and poses a threat to “unleash bloody intercommunal strife throughout Darfur.”

The draft Security Council resolution “demands that all parties to the conflict ensure the protection of civilians, including by allowing civilians wishing to move within and out of Al-Fashir to safer areas to do so.”

It also calls on countries “to refrain from external interference which seeks to foment conflict and instability and instead to support efforts for a durable peace and reminds all parties to the conflict and member states who facilitate the transfers of arms and military material to Darfur of their obligations to comply with the arms embargo measures.”

The United States claims that in addition to the fighting parties, the RSF and its allies have perpetrated crimes against humanity and ethnic genocide. According to the U.N., half of Sudan’s population—nearly 25 million people—need humanitarian assistance, and eight million have abandoned their homes as hunger levels are rising.

According to a U.N. sanctions monitoring assessment seen by Reuters in January, between 10,000 and 15,000 people were killed in one city alone in Sudan’s West Darfur area last year in ethnic violence by the RSF and associated Arab militia.

The Security Council will vote on a draft resolution that “calls on the parties to the conflict to seek an immediate cessation of hostilities, leading to a sustainable resolution to the conflict, through dialogue.”

Musings From Abroad

Nigeria, China extend $2bn currency swap deal

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A 15 billion yuan ($2 billion) currency-swap arrangement between China and Nigeria has been extended to boost investment and commerce between the two countries.

According to the People’s Bank of China, the agreement is anticipated to strengthen financial cooperation and encourage the wider use of the yuan and naira in bilateral transactions, as reported by Bloomberg and Chinese local media on Friday.

“The agreement is valid for three years and may be renewed upon mutual consent,” the central bank said in a statement.

The bank stated that by lowering reliance on third-party currencies like the US dollar, the currency-swap agreement renewal is expected to strengthen economic linkages, promote investment, and ease cross-border commerce.

When the Central Bank of Nigeria and the People’s Bank of China inked an agreement worth renminbi (RMB) 16 billion (about $2.5 billion) in May 2018, the currency-swap framework was first implemented.

Yi Gang, the former governor of the PBoC, and Godwin Emefiele, the suspended governor of the CBN, signed the deal.

The original agreement was intended to eliminate the need for third-party currencies like the US dollar by giving companies and industries in both nations direct access to the yuan and naira.

“This agreement will provide naira liquidity to Chinese businesses and RMB liquidity to Nigerian businesses respectively, thereby improving the speed, convenience, and volume of transactions between the two countries,” the CBN had said at the time of the signing.

To promote flexible and varied regional monetary and financial cooperation, including local currency swaps, to ease commerce between the two countries, President Bola Tinubu and President Xi Jinping of China met in September.

The leaders also talked about how currency-swap programs contribute to global financial stability.

Nigeria and China agreed to strengthen international collaboration on financial intelligence, emphasizing anti-money laundering and fighting the funding of terrorism, since commerce between the two nations makes up around 30% of Nigeria’s total trade.

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Musings From Abroad

World Bank suspends loan fees for impoverished countries

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To lower borrowing costs for vulnerable nations, the World Bank has announced the elimination of several loan fees. The action is a component of larger initiatives to increase financial capacity and tackle pressing global issues including inequality, climate change, and economic instability.

This was revealed by the international bank in a statement on Wednesday. The bank has extended its lowest pricing to tiny, fragile nations, removed the prepayment cost on International Bank for Reconstruction and Development loans, and instituted a grace period for commitment fees on undisbursed amounts.

“The bank is working hard to make it easier for countries to borrow and to pay back their loans more easily by removing some fees on IBRD loans,” the financial institution stated.

The financier claims that these adjustments are intended to relieve the financial strain on countries that require development funding the most.

“These measures are designed to make borrowing easier and more affordable for countries facing significant challenges,” the bank said. It added that the reforms align with its vision of building a “better, more efficient, and bigger” institution capable of addressing overlapping global crises.

The World Bank’s larger financial reforms, which include fee eliminations, are intended to boost lending capacity by $150 billion over the next ten years.

As part of the changes, the IBRD’s equity-to-loans ratio was lowered from 20% to 18%, allowing for an additional $70 billion in lending over ten years.

According to the statement, $1 billion was obtained through a guarantee from the Asian Infrastructure Investment Bank, and an additional $10 billion has been released through bilateral guarantees.

“The adjustments to our capital framework reflect our commitment to scaling up resources while maintaining financial stability,” the bank said.

The international lender highlighted that these adjustments are essential to tackling the billions of dollars that are required each year to help fragile governments, fight climate change, and advance digital inclusion.

It did concede, nevertheless, that states and multilateral organisations are insufficient to discharge these financial obligations on their own.

The Bank has created a Framework for Financial Incentives to close the gap, promoting investments in cross-border issues like pandemic prevention, energy access, water security, and biodiversity.

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