Tag Archives: trading

Toronto becomes first renminbi (Yuan) trading hub in North America

Direct exchange hub could smooth way for businessess doing deals in China

By Pete Evans, CBC News

After stock markets closed on Monday, Toronto became the first trading hub in North America for China’s currency, known as the renminbi or yuan.

Chinese government dignitaries, Federal Finance Minister Joe Oliver and his Ontario compatriot Charles Sousa attended a ceremony in Toronto Monday evening to formally announce the first conversion from yuan to Canadian dollars.

The announcement makes Toronto the first such trading hub in the Americas that has permission to be a clearinghouse for Chinese renminbi (which means “people’s money” in Chinese). There are currently only a handful of such hubs outside China, including Paris, London, Moscow, Singapore, Tokyo, Seoul and Sydney, Australia.

In practical terms, such hubs make it easier to do business with China because without one, Chinese money has to first be converted into a currency like the U.S. dollar before being again converted into loonies to make investments here, or even pay for supplies.

“What the hub does is it provides the potential to get a good price,” says David Watt, the chief economist of HSBC. “It sets up a way for Canadian businesses to call their local banker and say “we’ve got a deal to import Chinese material and we’d like to pay for it in RMB not U.S. dollars.”

The hub eventually will allow people on both sides to take out that middle man and convert renminbi directly into Canadian dollars and vice versa. “It should give Canadian businesses the confidence to increase trade.”

Read more » CBC
See more » http://www.cbc.ca/news/business/toronto-becomes-first-renminbi-trading-hub-in-north-america-1.3005726

Trading with the enemy. – By Najam Sethi

The granting of Most Favoured Nation (MFN) to India has confounded certain long-established political and ideological vested interests. The story of why Pakistan denied this status to India for two decades and why it has relented today is worth telling because it sheds light on a critical dimension of Pakistan’s “national security doctrine”. ….

Read more » The Friday Times

Clinton: U.S. must put economics at center of foreign policy

By CNN Foreign Affairs Correspondent Jill Dougherty

(CNN) — The United States must position itself to lead in a world “where security is shaped in boardrooms and on trading floors — as well as on battlefields,” U.S. Secretary of State Hillary Clinton will say Friday in a major economics and foreign policy speech in New York.

Economic forces, Clinton will say, are transforming foreign policy realities around the globe.

“We have seen governments toppled by economic crisis,” a text of the Secretary’s remarks released by the State Department on the eve of the speech reads. “Revolutions born in a Tunisian marketplace have swept across an entire region. Europe faces its strongest test in a generation, thanks to recession and debt. And everywhere I travel, I see countries gaining influence not because of the size of their armies, but because of the growth of their economies.”

Clinton will say she is updating U.S. foreign policy priorities to include economics “every step of the way,” suggesting the United States should take a cue from the leaders of emerging powers like India and Brazil who put economics at the center of their foreign policies.

“When their leaders approach a foreign policy challenge — just as when they approach a domestic challenge — one of the first questions they ask is, ‘how will this affect our economic growth?'” the text of the speech says. “We need to be asking the same question — not because the answer will dictate our foreign policy choices, but because it must be a significant part of the equation.”

In the address before the Economic Club of New York, the fourth in a series of speeches Secretary Clinton is giving on economics and foreign policy, she will say the world’s “strategic and economic center of gravity is shifting east” and the United States is focusing more on the Asia-Pacific region.

“One of America’s great successes of the past century was to build a strong network of relationships and institutions across the Atlantic,” she says. “One of our great projects in this century will be to do the same across the Pacific.”

The United States should help other countries find economic solutions to strategic challenges, especially in the Middle East and North Africa, she says. “We need a sophisticated effort to integrate the region’s economies, promote investment and assist in economic modernization. The Arab political Awakening must also be an economic awakening.”

Clinton takes aim at Americans who would turn inward, arguing “you can’t call ‘time out’ in the global economy. Our competitors aren’t taking a time out, and neither can we.”

Increasingly, the United States is focusing on “tracking and thwarting” the financiers of terrorism, using sanctions and other economic tools to cut repressive regimes off from insurance, banking and shipping, Clinton says.

Finally, Clinton says, the United States is “modernizing (its) agenda on trade, investment and commercial diplomacy to deliver jobs and growth for the American people.”

But the United States cannot compete, she says, if it is frozen in domestic political fights.

“Washington has to end the culture of political brinksmanship — which, I can tell you, is raising questions around the world about our leadership.”

Courtesy: CNN