04 Mar, 2024

Laos Inflation Hits 25.35% in February

Laos continues to face economic challenges as inflation rates reached 25.35 percent in February, up from 24.44 percent the previous month, according to a report released by the Lao Statistics Bureau on 29 February.The report indicates that while the overall inflation rate continues its upward trajectory, certain sectors have witnessed a slight decrease in prices.In February, the hotel and restaurant category registered the highest price hike, standing at 35.1 percent year-on-year, a marginal decrease compared to January’s figures. Other sectors contributing to inflation include clothing and footwear, medical care and medicines, food and non-alcoholic beverages, and communications and transport, all experiencing substantial increases ranging from 22.6 to 35.1 percent.According to the report, several factors have contributed to this surge in inflation. Firstly, increased demand during festivities such as Vietnamese and Chinese New Year has led to a rise in food prices. Secondly, soaring fuel prices, with diesel climbing by seven percent and gasoline by five percent, have exacerbated the situation. Lastly, the depreciation of the Lao kip against major currencies, including the US dollar and Thai baht, has further strained economic stability, depreciating by 1.70 percent and 0.61 percent, respectively.In response to the challenges, the Lao government, led by Prime Minister Sonexay Siphandone, convened a monthly cabinet meeting from 28-29 February. The meeting aimed to address the country’s economic and financial hurdles and devise strategic plans to ensure sustained economic growth.On 29 February, shortly after the monthly cabinet meeting, the government preliminarily approved draft laws and decrees to address economic challenges. These include laws on tourism decentralization, traditional medicine plant protection, countering money laundering, and dry ports.To attract foreign currency into the country, the Bank of Laos (BOL) also implemented a new regulation mandating foreign investors, back in December last year, to open a Foreign Direct Investment Bank account (FDI) either in Lao Kip or a convertible foreign currency with a commercial bank to streamline the process for foreign investors looking to invest in Laos while ensuring greater transparency and accountability in capital flows.The bank has also pledged to implement a tighter monetary policy to stabilize the kip’s value, aligning with the government’s ambitious goal of reducing inflation by 9% in 2024.

29 Feb, 2024

Bitcoin Blows Past $60K, on Track for Best Monthly Candle Since Dec. 2020

If bitcoin’s price holds on for the next day and a half, February will mark its best month in more than three years.Bitcoin (BTC) has exploded by 43.2% over the month to date, swelling from $42,560 on Feb. 1 to briefly touch $64,000 this afternoon, before retracing to $60,950 as of 1:15 pm ET.If bitcoin rides out the month at comparable prices, its February candle would almost eclipse a 47% candle set in December 2020 — the early stages of the previous bull market.February would also be the second largest green monthly candle since May 2019.Bitcoin was lost in the doldrums of a bear cycle at the time, opening the month below $5,300 to finish past $8,500 — a 62% jump. Crypto exited its winter phase over the following year.The crypto market looked far different in 2019.No BlackRock or Fidelity spot ETFs were hoovering up bitcoin faster than they’re mined, the SEC had not yet sued Ripple Labs over XRP (the third-largest crypto at the time behind Ethereum), and there were only $3 billion in tether in circulation — now there’s close to $100 billion.Another major difference was the number of bitcoin on crypto exchanges: Investors kept around 3 million BTC on trading platforms. That’s the most in bitcoin’s history per CryptoQuant, which tracks exchange wallets.Altogether, that BTC was worth about $26 billion at the time.Bitcoin holders have been pulling their coins off exchange ever since. Now, exchange reserves are on track to dip below 2 million BTC, a level not seen since December 2017 — when bitcoin had just set an all-time high of $20,000.While that’s still more than 10% of the circulating supply, one could easily add a one-third reduction in BTC on exchanges over the past five years to the seemingly bottomless pile of bullish factoids swirling around right now. It’s worth considering though that bitcoin’s price has added six multiples across that period, from under $9,000 to $62,000. So, the dollar value of all bitcoin kept on exchanges right now is about $123 billion — its highest point since April 2022. With so much dollar value locked up in bitcoin markets right now, the only real guarantee moving forward is volatility.