Belize Offshore News

August 11 - The Greek Carousel and China Rollercoaster

Around and around we go. More aid. More cuts. More recession. Repeat.

The ruling party in Greece and the country’s many creditors are close to a third bailout, which amounts to a temporary fix to an inscrutably long-term problem. Nobody is likely to be happy: not the leftist leaders which had previously vowed to harsh austerity terms that are part of the bailout, not the hardline creditors in Germany and elsewhere, not investors in Greece, and certainly not the Greek people. Seems like inertia is the main force at work here.

What more is there to say about this tired story? Not much. Let’s turn to China.

China’s stock market has plummeted during the past few months, and this has negatively affected consumer demand, which has threatened the country’s goal of seven percent growth this year. In response, the Chinese Central Bank has devalued its currency, the renminbi, almost two percent against the dollar. This is the largest devaluation since China’s exchange-rate system was introduced in 1994, and it amounts to an official declaration of concern. Other Asian markets were chaotic following the move, and major Asian currencies also fell against the dollar.

Photo of China market as part of Belize Offshore Company News page by Belize attorneys, Belize lawyers, Belize law firm, Belize international business companies (IBCs)

The move is likely to inflame geopolitical tensions with the U.S. and international institutions like the IMF, which have scolded China for years for playing too large a role in managing its currency. The complaints have centered around the loss of domestic jobs due to a deflated renminbi, which has inflated Chinese competitiveness. Yet this time around, analysts say that the devaluation brings the renminbi closer to where the market is, so the complaints will be relatively muted.

A drop of two percent is not a tremendous move, even for a major currency. What makes this such a big deal is that China has indicated to the rest of the world that it intends to allow the market to play a bigger role in the currency exchange markets moving forward.

It will be interesting to see what emerges from this situation, the degree to which China embraces this change, and what posturing other countries will take in response. On the other hand, we’ve seen this act of the economic crisis in Greece before. The encore will be more of the same.

currency photo on Belize Offshore Company News page by Belize attorneys, Belize lawyers, Belize law firm, Belize international business companies (IBCs)

Whether you’re interested in moving your money out of Europe or participating in currency exchange trading during a tumultuous time, Belize is an ideal home place for your investments. Opening an international business company in Belize is as easy and inexpensive as it gets in the world, and this includes obtaining a foreign currency exchange trading license.

A FOREX trading license enables you to:

  • Operate as a FOREX brokerage firm
  • Provide a full array of brokerage services to clients
  • Provide an online platform for your clients to do their own
  • FOREX trading Provide managed
  • FOREX trading options
  • Process debit card payments and credits of client accounts

A more traditional Belize international business company (IBC) is even simpler and less expensive to initiate. The corresponding Belize offshore bank account will enable you to avoid taxation and maximize investment opportunities. Some refer to it as tax evasion or hiding money, but in Belize it’s all perfectly legal.

Besides currency trading accounts, establishing a company in Belize is ideal for:

  • Internet commerce
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  • Inheritance provisions

To explore applying for a Belize FOREX trading license today, or to learn more about additional offshore opportunities in Belize, please contact Wrobel & Co., Attorneys at Law.


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