By expanding productive capacities, public investments can also lessen supply-side constraints and reduce inflationary pressures in the medium-term. As fiscal space is constrained in most countries, public expenditures need to be well-managed, targeted and efficient. Stationary market-based wholesalers tend to market F&V quantities around 10 kg to commercially oriented customers, including traders, restaurateurs, grocery stores and roadside vendors, while retailers may sell 1–2 kg to individuals consuming F&V at home.

Liquidity preference theory attempts to explain the relationship between liquidity, interest rates, and economic stability, highlighting how individual and institutional behaviors around liquidity occur within financial markets. Originating in the work of Keynes, liquidity preference theory continues to serve as a pivotal lens through which to consider monetary economics phenomena. For investors, a grasp of liquidity preference is productive in making better asset allocation and risk-management decisions.

Therefore, even in urban areas, the elastic dynamics of retailers and local markets may have negative implications for the poorest consumers, with inflated prices restricting access to the full range of F&V. Beyond the coordination of supplies from over 28,000 farmers, Loop also provides various technology-based innovations relative to traditional collective marketing methods (e.g. the hiring of public transport). Rather than hailing a bus or an autorickshaw at the roadside, farmers can reserve market transport by contacting their aggregator one day in advance. Aggregators record various market transaction details in the Loop smartphone application (e.g. market name, quantity sold and per unit price), which provides farmers with a digital receipt of past transactions.

Challenges of liquidity aggregation

The financial system and the economy are systemically more vulnerable now than ever before. The saving-investment growth nexus, the manufacturing base and its growth, the level and quality of employment, business operations, farm prices and income, the vigour and health of the financial system, liquidity, and the payment system are in a state of flux/reversion. Market funding and liquidity funding crises are resulting in an unprecedented liquidity gridlock in trade and industry.

  • The outlook in Latin America and the Caribbean remains challenging, amid unfavourable external conditions, limited macroeconomic policy space, and stubbornly high inflation.
  • In particular, repo operations, swap lines, and asset purchases all expanded the Federal Reserve’s balance sheet on a large scale.
  • Though challenged often by neoclassical economists, monetarist theorists, and others over the years, his work became the cornerstone of modern macroeconomic theory, with liquidity preference theory being one of his notable contributions.
  • The SRF and FIMA Repo Facility will provide backstops in overnight money markets that help address immediate demand for dollar liquidity, both domestically and internationally, when shocks occur.

While the impacts of the COVID-19 pandemic continue to reverberate worldwide, the war in Ukraine unleashed a new crisis, disrupting food and energy markets and exacerbating food insecurity and malnutrition in many developing countries. High inflation is eroding real incomes, triggering a global cost-of-living crisis that has pushed millions into poverty and economic hardship. At the same time, the climate crisis is taking a heavy toll on many countries, with heat waves, wildfires, floods, and hurricanes inflicting massive humanitarian and economic damage. Forex is a platform where everyone, from a huge corporation to a beginner trader, can start making a profit from their funds. This article will discuss liquidity, how it is formed in Forex, the difference between liquidity providers and aggregators, and the latter’s benefits. However, secondly, these producer-facing outcomes may not immediately translate into widespread consumer-focussed benefits.

Challenges of liquidity aggregation

Besides formalisation of informal business funds, identification of breaks in TC flow chains and devising TC interventions can vitalise the supply-chain financing network without loss of time. Liquidity is necessary in meeting the challenges from structural weaknesses and the slowdown. The high currency growth is not generating higher growth/inflation, as it is mostly being used by general public at large to finance under-invoiced imported consumption goods and industry inputs. The RBI’s unawareness of these facts resulted in critical shortcomings in the demonetisation strategy and the objective of evolving into a less-cash economy. Information failure in terms of quantity, quality, prices of unscrupulous imports creates cost-price uncertainty and risk of unknown/unequal competition for firms. Besides these direct economic costs, is the high invisible cost of information failure in terms of capex not undertaken and goods not produced, as businesses anticipate in advance that they cannot compete with Chinese imports.

Moreover, the introductions of intensification technologies have been challenged by poor technological know-how, unreliable extension efforts and the reluctance to give up traditional cultivation and marketing techniques (Kumari et al., 2017; World Bank, 2007). Further downstream, only 0.3% of the national cold chain capacity stored F&V in 2011 (Halder and Pati, 2011), with wastage rates between farm and fork estimated to be up to 30–40% (Minocha et al., 2018; Narula, 2011). Liquidity Aggregation is an amazing concept, which can be utilized to the benefit of both the trading platform and the traders themselves.

Challenges of liquidity aggregation

The more people prefer liquidity, the higher interest rates must rise to make them willing to hold bonds. The outlook in Latin America and the Caribbean remains challenging, amid unfavourable external conditions, limited macroeconomic policy space, and stubbornly high forex liquidity aggregation inflation. Regional growth is projected to slow to only 1.4 per cent in 2023, following an estimated expansion of 3.8 per cent in 2022 (figure 3). Labour market prospects are challenging, and reductions in poverty across the region are unlikely in the near term.

Counter-party payment risk spirals, customers delay payments to vendors and all players are reluctant to release payments. Your Bourse, a leading trade execution technology company, has announced the release of their most advanced portal to date. The new features on the portal empower brokers to have more control and maximise profitability through customisation of settings and dashboards. Your Bourse, opens access to all their clients to enhanced reporting and real-time risk management capabilities that empower brokers to gain more insights, improve execution and profitability.

Consequently, distance traders only operate from markets with sufficient F&V supplies, infrastructure and physical space, which tend to be located in district capitals. The liquidity gap reports presents a summarized view of the bank’s balance sheet by breaking total assets and liabilities into accounting line items and maturity buckets. Even with the right asset liability management platform liquidity gap implementation is sometimes a challenge. PrimeXM is a renowned provider of advanced liquidity aggregation and connectivity solutions, empowering brokers with low-latency access to multiple liquidity venues through their cutting-edge XCore technology.

Depth in the five-year note was at levels commensurate with those of March 2020, whereas depth in the two-year note was appreciably lower—and depth in the ten-year note appreciably higher—than the levels of March 2020. Within about a month, depth for all three notes was back to levels similar to those of the preceding year. Aggregation or liquidity aggregation can be characterized as the process of gathering buy and sell orders from different sources and directing them to a given executing party. Structural damages on multiple fronts arising from the spill-over effects of massive unscrupulous Chinese imports need to be understood. The Make in India strategy needs to be synchronised with planned phasing out of illegal/under-invoiced imports along with spurring of domestic capex and capacity.

This will require more effective coordination among major central banks, supported with clear policy messages to manage and moderate inflationary expectations. In South Asia, the economic outlook has significantly deteriorated due to high food and energy prices, monetary tightening, and fiscal vulnerabilities. Average GDP growth is projected to moderate from 5.6 per cent in 2022 to 4.8 per cent in 2023 (figure 3). Growth in India is expected to remain strong at 5.8 per cent, albeit slightly lower than the estimated 6.4 per cent in 2022 as higher interest rates and a global slowdown weigh on investment and exports. The prospects are more challenging for other economies in the region, with Bangladesh, Pakistan and Sri Lanka seeking financial assistance from the IMF in 2022. Economic recovery in East Asia remains fragile, although average growth is stronger than in other regions.

The region has been hit by multiple shocks, including weaker demand from key trading partners (especially Europe and China), a sharp increase in energy and food prices, rapidly rising borrowing costs and adverse weather events. As debt servicing burdens mount, a growing number of Governments are seeking bilateral and multilateral support. Economic growth is projected to slow from an estimated 4.1 per cent in 2022 to 3.8 per cent in 2023 (figure 3).