CPA Kayasi Eboyi Edwin

28/10/2025

Macro Economics

Exchange Stabilization Fund

This is a reserve that was established to stabilize the U.S. dollar in case of turmoil in foreign currency markets after the U.S. abandoned the gold standard.

The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury ("the Secretary").

The Exchange Stabilization Fund (ESF) consists of three types of assets: U.S. dollars, foreign currencies, and Special Drawing Rights (SDRs), which is an international reserve asset created by the International Monetary Fund.

This is the fund that the US is currently using to bail out Argentina after it's currency - Peso was hard hit by hyperinflation.

The Argentina bail out if it succeeds could just be an example of what the US could do to other countries that have borrowed heavily mainly from China to finance their infrastructure projects- Kenya included. Other such countries include Brazil, Egypt etc.

Seems the US is ready to defend the dollar dominance at all costs and the United States Secretary of the Treasury Scott Bessent knows exactly what to do.

It's now emerging that the war between US and China is shifting and taking the direction of strengthening the currencies of the respective countries. China is banking on the backing of Gold while the US is looking wide on Digital assets and other strategies including the use of ESF.

It's getting more interesting by the day.

04/10/2025

Sovereign Wealth fund

A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity funds or hedge funds.and digital assets.

Sovereign wealth funds have three key characteristics:

✅A sovereign wealth fund is owned by the general government, which includes both central government and sub-national governments.

✅Includes investments in foreign financial assets.

✅They invest for financial objectives.

These key elements exclude:

✅Public pension funds, which are ultimately owned by the underlying policy holders.

✅Central bank reserve assets, which are not invested.

Important to Note

✅On 3rd Feb 2025 President Donald J. Trump signed an Executive Order calling for the creation of an American Sovereign Wealth Fund.

✅Norway runs the largest globally, thanks to its vast oil and gas production in the North Sea, which generates 10% of the country's GDP.

✅China's two biggest sovereign wealth funds hold $2.4 trillion in assets, playing a key role in financing the Belt and Road Initiative and other strategic industries.

✅Last year, Kenya announced plans to transform KDC into the Kenya Sovereign Wealth Fund.

07/09/2025

ESG Updates

Singapore delays climate related reporting to give smaller firms more time to prepare.

ACRA Chief Executive Mrs Chia-Tern Huey Min said:

“Sustainability reporting is a crucial tool for companies to support their sustainability strategy and for accountability to their stakeholders. Our differentiated implementation approach provides companies who are less ready with some relief in the near term so that they can build up capabilities for the future, while requiring companies who are more ready to progress with their reporting.”

07/08/2025

Financial Reporting

The FIRE awards was officially launched a week ago Under the theme “Fostering Compliance to International Standards to Enhance Transparency, Comparability & Accountability”,

This year’s award season is set to spotlight excellence in financial reporting across the region.

Its your time to shine.

25/06/2025

Equity bank held its Annual General Meeting today.

On Sustainability, this is what the Group CEO and managing director had to say.

24/06/2025

Sustainability Reporting

Britam makes vital disclosures

https://www.capitalfm.co.ke/business/2025/06/britam-invests-sh2-4bn-in-local-minority-suppliers/

16/06/2025

Sustainable Technologies in Emerging Markets.

✅ Foreign Direct Investment (*FDI*) flowing into the Emerging Markets (EMs) and developing countries is declining, but environmental technology is one sector that is bucking the trend.

✅Global demand for energy-efficient, low-pollution, and climate-adaptive technologies is attracting private capital to emerging markets. This is leading to *job creation* in green sectors such as renewable energy, electrical components, and metals.

✅The research shows renewable energy accounted for over $400 billion in FDI in EMs and developing economies from 2021 to 2023.This represents 70% of total investments.

https://wrld.bg/7ysM50W4iP8

29/05/2025

Sustainability Initiatives

Microsoft has announced that it has signed an agreement with Sublime Systems to buy more than 600,000 tons of low-carbon cement, with the purchase agreement aimed at helping the technology giant address its carbon footprint, as well as to help advance the sustainable materials market.

Dr. Leah Ellis, Sublime Systems CEO and Co-founder, said:

“This purchase enables Microsoft to access Sublime’s low-carbon cement technology regardless of where their construction is. This solves a previously intractable challenge for clean cement scale-up: the lack of long-term cement transactions contrasted with the immediate need for innovators to demonstrate bankable customers to fund their manufacturing. Microsoft is stepping up as the first customer for our future megaton-scale plant, enabling us to more rapidly build and scale Sublime Cement as a global, enduring solution for clean construction.”
(ESG Today)

27/05/2025

Sustainability News

Italian energy infrastructure and services provider Snam announced that it has raised $2 billion in a multi-tranche sustainability linked bond (SLB) offering, with the cost of debt tied to the company’s interim- and long-term targets to reduce greenhouse gas (GHG) emissions across its value chain.

24/02/2025

Food for thought.

The hype and rise of wealth funds.

✅Countries are establishing sovereign wealth funds.- Fact

✅Investment companies are running investment funds for your money. - Fact

✅Companies are creating reserve funds for their future needs. - Fact

Thinking
✅What is preventing you from creating your structured family wealth fund?

✅What is preventing you from converting your community welfare group (Chama) into a structured community wealth fund?

This is a very new concept that communities and individuals may need to embrace to secure future financially and meet their emergency needs.

06/02/2025

Triffin Dilema

The Triffin Dilemma appears to be at at play in the latest shifts in Global economies.

It seems that there is more to the current trade war between US, Canada, Mexico and China.

President Trump must have carefully analyzed the Triffin Dilemma and has already taken side with his strategy. Give it to him, He appears to be winning and the strategy seems to be working.

The BRICS Nations never saw this coming and might be forced to convene and restrategize if ever they want to continue with their push for De dollarization.

Mexico and Canada being neighbors to US with unfavorable balance of trade remain at a disadvantage and have to humble themselves.

Edwin Kayasi

17/12/2024

Sustainability Reporting

The European Securities and Markets Authority has launched a consultation to gather input on digitalizing sustainability and financial disclosures through the European Single Electronic Format.