SWIFT: Ren­minbi gain­ing ground as global cur­rency

China Daily (Canada) - - BUSINESS -

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.

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