Blog 7: Ivory Coast rush to withdraw bank cash

February 17, 2011

Article title: Ivory Coast rush to withdraw bank cash

Article date: February 16, 2011

Article link: http://www.bbc.co.uk/news/business-12478846

Due Date: February 17, 2011


Long lines are forming around the fourth closed bank in the Ivory Coast as it has been weeks since people have been able to cash a check or withdraw money. President Gbago still refuses to step down and tensions have been rising which has led to many bans and protests against the regime. The Ivory Coast exports a third of the world’s cocoa and prices are at an all time high because the cocoa exporters have stopped registering beans as a result of sanctions and a ban against the regime.

The closing of banks in the Ivory Coast and in the area will ultimately impact the economy. This means that spending will be down and if people pay with a check businesses may be unable to get the money that they need from the checks. With more and more banks closing the slowdown will be inevitable and will lead to more economic instability along with the unrest against the regime. Businesses who are in any way connected to the Ivory Coast whether having their business abroad or have their supply chain connected to that area will have to be especially sensitive and savvy about the issues going on. In addition, to dealing with the economic stability of the country, businesses will have to consider the rising prices of goods that were going to be exported out of the country but are now stopping because of the ban on the regime. Also it said in the article that businesses were banning other businesses that supported the regime which means that a business owner may now not be able to get certain items on time because of the ban. On the other hand, they would also have to consider that if they continue to trade with a business that supports the regime then they may encounter issues with the businesses who were banning that business.

This news article relates especially to businesses that deal with cocoa at all as their supply may need to come from other countries as the cocoa exporters of the Ivory Coast are protesting. This means higher costs as businesses try to adjust and as cocoa prices continue to rise. This is why we must always consider alternatives that may arise because of different factors in the environment (natural, political, etc).  For example, Tropicana has a supplier in Brazil who is able to get them the oranges they need if there is a hurricane or another natural disaster in Florida.

In conclusion, this article means that the unrest that started in Egypt is starting to grow in other countries as well which will most likely impact any businesses that deals or trades throughout that region or who has any ties whatsoever to that area. Even if a business is not directly or indirectly tied to the area they may still feel the impacts of higher export prices, trade barriers, banks closing, low consumer spending, etc.


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