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tv   Business - News  Deutsche Welle  August 16, 2023 8:15am-8:31am CEST

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some people here, then the negative impacts of new zealand going out. however, disappointing thing that may have been that people will thank you so much for your reporting there. that is data of use all of the moody in auckland, new zealand. you're watching that dw news from berlin, that coming up next is a dw business after a short break. remember, you can also find us online to at dw doc. com. unclear richardson. thanks for watching the eclipse someone else through the cd highlights of selected for you. you every week, a new a box, subscribe now become a criminal pretty kind, a tech told me about sugars paralyzed tire societies. computers that are similar to
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governments that go crazy for your data. explain how these technologies work. so that's how they can also watch it. now, the a will roller coaster in an emergency meeting, rush central bank, raise the interest rates to prevent a currency free fall after the value of the revolt took a nose dive. and 2 years after the town took hold of of gun a son as cancer, struggling to feed themselves in a fragile economy armada zena, welcome to the show. we turn for us to russia after president clinton's full scale
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invasion of ukraine. last year. russia became the most sang to nation on earth until now the kremlin found ways around the in bar goes, but the pain couldn't be avoided forever. on monday, the rubel felt its lowest level in 16 months. the bright red light on one of moscow's many exchange places could have been seen as a sign of alarm. the rubel at $102.00 to the dollar on monday, hitting its weakest level since the start of the war. on tuesday, the currency showed signs of life after the central bank step 10, raising rates to 12 percent of the kremlin to the test. after all, the political leadership said it was loose, monetary policy that had weakened the ruble. musk advice have long been concerned over the trend lowest and what soon becomes more and more expensive. so those i wish on saturdays with the same as the dollar exchange rate does, let me have you all done with the much with you. i think you feel the weakening
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ruble later because we always see this training when the dollar is rising. it is followed by the prices rising and the stores of courses will affect us. and it likely will, for some time the central bank, even though it followed the kremlin orders, it says it's policy isn't the reason behind the rubles weakness, but the absence of trade. indeed, the rubel has been under pressure ever since russia attacked ukraine. international sanctions have led to export revenues. dwindling. russia is gross. domestic product is down. the country is in procession. for more on this, i'm joined now by maximilian has. he's a fellow at the foreign policy research institute. hi maximilian maximilian, the rubel or is less than one us send on monday. what does that mean for people living in russia as well?
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it certainly is going to have a real impact on russian's ability to afford most basic goods. you know, we just heard some very good comments from russians on the street there. i don't think you will have too much immediate impact on the overall quality of life. but we have to remember quality of life and rushes still below 2013 levels. and it's a psychologically very symbolically important level. right, so why did rush us currency take a dive now? well essentially, you know, 18 months into the war. we're still in a situation where despite the criminal and imposing significant and capital controls, despite sanctions, there's a lot of demand in russia for money to get out of that economy. and we just need to look at the airport as dunbar and to buy. and there's very little demand for actually buying russian products, at least the rubles with russia does still sell internationally, is it's oil and found a lot of new customers in india and asia there. but that's all dollars and nominate
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and what makes it so worrying for the russians they is, they just ended their process known as the budget rule through which they convert. currency is from dollars they earned through those sales to the rubel. and they had a band and that a week ago. and so there's a lot of question now about what this will be for the rubles trajectory going forward. outage of those was, is that the oil price is actually strengthened. we should make the rouble increase in value, but instead it was falling off a clip over the weekend. right. so what's the role of sanctions and all of this that they cause the dive? it's certainly the cause of diving to it is one, you know, with a lot of russian seeking to get their money out of the country, the beginning of last year, the crime and then weaponized. it's gas supplies. in fact, we drove prices up for that, that really helped the rouble recover through last year. but now we've essentially reached this place where sanctions means that it's so hard to buy or to trade or invest in russia with room also that's decreased the demand for the russian
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currency there. and then even more importantly, because they target the russian central bank and russel's ability for its government to use those dollars that earns essentially a dollar or a euro, or a swiss franc, or again, once it crosses the digital or physical frontier with russia. because now it was somewhat less than any other unit of that currency that's abroad. and so that's, you know, even bigger turn off for the rest of the economy on a macro level, of course, for individual companies in the light that have been directly targeted by sanctions . other very significant additional um, sort of micro economic impacts as well. right. so the sanctions fighting there, thank you so much lexie media and has good your own. it's 2 years ago today the tale binds his power. so i was going to study the radical islamic were promised the revival of the country's economy. those plans did not materialize. i've got a son remains the world's largest humanitarian crisis in 2023. that's according to the united nations live for us guns as awesome daily struggle for survival.
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v. but was, i'm as, as really lives with this 5 children and couple even with relatively stable income as a government employee. he feels the strain of the economic crisis here in the equivalent of 70 us dollars a months still not enough to support his family. it won't do so for you. what are some of my friends here and from abroad helped me but it's not enough. okay, well i'm to most of you as help as temporary. so sometimes you look for daily wage working construction, let us know work there as well. you cannot make situation for everyone was getting worse. he's cleaning the family sewing machine for the last time, preparing it before he tries to sell it. it isn't the 1st time he sold household goods to make ends need. other families live on money sent by
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a relative living abroad. the money exchange market side are you, she has done couple is critical to their ability to receive money from outside the country. that's because afghans are only allowed to withdrawal limited amounts from their bank accounts. this is a taliban government's way of preventing a bank run, but we're not to defend the bank. we're not under section 5 other people in the bank so can not make transfers freely to companies or to foreign countries. oh god. okay so, so right. you just saw the is doing this task now go and his son remains a week to set up our business related banks, our national banks. also we move on government. the one of the country is feeling the burden of international economic sanctions which were put into place after the radical islamic tale bond to power 2 years ago. the supply situation has severely
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deteriorated, and united nations estimates the one and 2 people in the country is now dependent on aid. how people's i'm on because really makes his way to a 2nd hand goods dealer. with the money for the sewing machine, he can now buy food for at least the next few days. is this your jumpstart, your morning was coffee. chances are it's from brazil. the country famously, the world's top coffee exporter in recent years, it's $1000000000.00 industry. it has also become well known for subjugating workers to slave like conditions a problem the government has vowed to address, but the problem spends beyond coffee plantations. they must have just been here more. so the compos, he's willing moves from one coffee ro to the next. where are the women who are just working here?
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for very well how this thing here. we want to find them and talk to them to understand the situation by stuff. so we're accompanying these inspectors from the labor ministry, the prosecutor's office, and the federal police on the coffee plantations of men. not sure rice, they want to track down harvest workers where room or to be working here under sleeve. what conditions did men to the bushes the inspectors have discovered to women? they've been working on paid for over a month now without any protective clothing to water or even a toilet. the situation is 10th focused, this already makes me uncomfortable. is accused of the 5. are you afraid of how your boss will react? no, it's not the workers who should be punished, but the employer at that both of my just a little over 100 years ago what castillo,
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we're still slaves of generals commodity, the country with a history of 300 years of slavery thing. as a patriarchal culture that need to appreciate small fulfils the rights of workers city. it was your day to go to. the team is following up on an anonymous reports from january to march alone. investigators have rescued 100 workers in brazil from inhumane conditions. record numbers due to an intensified search. the next started at 1st glance, seems like a sawmill, but it also includes a coffee plantation. the team quickly finds what they're looking for. iran is working with protective clothing and instead of earning money, he's piling up dead. all the tools i use here, i have to pay for it, and so there's no way out as i, as i have to work to pay over the debt as it never ends. they are making us into slaves. i work and it's cost estimating the i don't even in any actual money to buy food for home. it's bad because she well also has no contract. he works 12 hours
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without a break. he says both men sleep on the mattresses and a sort of living room. however, in humane working conditions are not only found on coffee plantations in march, inspectors fried 85 workers on a farm and the south for sale. the sub contractor produces seeds for the german company, b, a ss, the sub contractor, also employee subcontractors for the workers. the inspectors are investigating at 40 degrees the workers found rest only on the bare ground due to a lack of water. there were fainting spells, those who felt ill did not receive any wages. when we heard that b a s f was behind the sea production, we by shopping because a company of this size must also be interested in this up contract. that's of the sub contract. us deals on the b s. s condemns the human rights violations. they say there were no previous indications and added that there were no direct contractual relationships with the workers, but emphasized that they also fundamentally required their subcontractors
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contractually to respect human rights. and their supply chain be a subset of voluntarily paid the equivalent of over $1600000.00 bureaus to the workers and towards the social projects and intends to increase controls in the future. to the mentality of the rich farmers must change the investigators. and according to them, there's one way to do this punishment. the work of the inspectors is far from over . and a reminder of the top business story we're following. for you this hour. the russian rouble hit a symbolic lo monday, with one rouble being worth less than one us sent on to save the russian central bank, raised interest rates by 3.5 percent toward a currency collapse. and that's our show for more check out dw dot com slash business, and the dw news youtube channel also on facebook for me and the business team here in berlin. thank you for watching.
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