SWIFT: Renminbi gaining ground as global currency
The renminbi was used for 11.2 percent of the total payments by value between China and the rest of the world in October, up from 6.2 percent 18 months ago, Belgiumbased global payment services company SWIFT said onWednesday. SWIFT’s latest renminbi tracker showed that 15 more countries are now using the currency for more than 10 percent of their payment value with the Chinese mainland andHong Kong compared with April 2013. In total, 50 countries out of the 161 that exchanged payments with the Chinese mainland and Hong Kong last month have crossed the 10 percent threshold, SWIFT data shows. or the yuan, strengthened by 34 basis points to 6.1320 against the dollar in its central parity rate on Thursday, according to the China Foreign Exchange Trading System. In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. could create competition for theUnited States, the largest exporter, as Chinese feed mills are increasingly buying the grain to use as a cheap substitute for corn. China’s quarantine bureau signed a phytosanitary protocol agreement with Argentina that authorized imports from the South American country fromNov 3, it said in a statement onWednesday. Sorghum is traditionally used to make alcohol in China, but its use in animal feed surged last year as the industry sought to diversify ingredient supplies and replace domestic corn, which has become more expensive as Beijing supports the rural population. Chinese government crackdown on ostentatious spending slammed demand for its premium cognac. The maker of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum said that while the global economic climate remained “mixed” it was sticking to its forecast of delivering organic growth in full-year sales and operating profit. Like its global rivals Diageo Plc and Pernod Ricard, Remy has been hit by a Chinese government crackdown on giftgiving and personal spending by civil servants, as well as slowing growth in the world’s second-biggest economy.