International Current Affairs - November 2011

International Current Affairs - November 2011

50bps cut on reserve ratio by china


• China's bank –People's Bank of China (PBOC) decreased the reserve ratio for banks by 50bps. This move was taken to support China's economy as economical growths are getting down in other parts of the world.

  Before the announcements on the cuts were made reserve ratio was recorded 21.5%. This is the first such blow on the major monetary loosening by the PBOC since Dec 2008. Not only this the PBOC had earlier raised the RRR 6 times this year and even raised lending limits more than 5 times since the year 2010.The last RRR increase was recorded on June 20th this year.

Unemployment rate drops to 8.6% leading the U.S economy to add 120,000 new jobs


• In the U.S the unemployment rate dropped to 8.6% which lead to the addition of 120000 new jobs all over the country. This percentage was the lowest to be recorded in the last two years as announced by the Department of Labor.

  In October this year the rate was 9%. As the U.S employers added 120000 new jobs this proved to be a significant improvement by the gain of 80000 jobs as compared to last month record.

  Although this is still not a good news because if compared with the past 3 months the economy has added only an average of 114000 net jobs every month which is hardly enough to go by the population growth.

  At present America still have 14 million jobless people, the economy needs to bulk up the job addition by 250,000jobs a month to bring down the unemployment rate substantially.

Ex-Taliban to attend Afghan talks despite US disapproval


• Ex-members of Taliban are going to attend the Bonn conference to be held in Germany for the topic about the future of Afghanistan after the year 2014.

  The Afghan governments list of invitation to the meeting is being viewed as a crucial step to hammer out the country's future but regarding the invitation to the former members of Taliban the U.S officials have backed out of the meeting.

  The organizations former ambassador to Pakistan Mullah Abdul Salam Zaeef along with other members of the delegation has already reached France to discuss in advance about the agenda of the meeting.

  Regarding the meeting the US ambassador to Afghanistan Ryan Crocker said that there is no place for the involvement of former Taliban members to attend the meeting in order to decide the future of the troubled country.

British PM weighs in on euro-zone changes

German drive for swift change for the European Union's treaty. This treaty is a sign of the difficulty that the leaders will face while transforming Europe to save the euro. In the meeting both the countries France and Germany are going to decide to reach to a solution of reaching a consensus that states that all euro zone economies are required to be bounded more closely if they want the euro to survive as a single currency. This means that changing the European treaty to give Brussels powers in order to punish spendthrift euro states.