investment

Toronto Reviews Bid to Become Yuan Currency Trading Hub

"Canada’s banks are considering a plan to make Toronto the first North American trading hub for China’s yuan, joining a global race for a share of trading in the currency of the world’s second-largest economy. The moves to set up a trading hub in Canada come as an organization representing Frankfurt’s financial industry predicts the European Central Bank is nearing a deal with China that will help the German financial center become a European yuan trading hub. The Bank of England signed a similar but smaller agreement last month, joining other recent additions like Australia, Turkey, Brazil and South Korea as China pushes for greater use of its currency outside the mainland." Continue reading →

Continue ReadingToronto Reviews Bid to Become Yuan Currency Trading Hub

China signals will cut off credit to rebalance economy

"China said on Friday it would cut off credit to force consolidation in industries plagued by overcapacity as it seeks to end the economy's dependence on extravagant investment funded by cheap debt. The State Council said it would ensure credit kept flowing to businesses that it thought had competitive products, but it would work with banks to oversee a gradual winding down of other businesses. Friday's announcement was the latest sign that China's policymakers are determined to bring debt-fuelled expansion under control, after the central bank allowed a cash crunch last month that sent short-term lending rates to record highs." Continue reading →

Continue ReadingChina signals will cut off credit to rebalance economy

More trade payments settled in yuan

"Changes such as a pilot quota scheme announced in March that allowed a handful of foreign companies operating in China to move funds freely across borders is boosting trade volumes and encouraging other foreign firms to settle trade in yuan. A cash squeeze in the mainland in recent weeks may have made some firms reluctant to use yuan to settle payments, but that appears to have been a temporary impediment as money market rates have come back down. Redenominating Chinese trade in the yuan versus U.S. dollars has always been the primary goal for Beijing and analysts expect the recent wave of reforms to boost yuan trade settlement." Continue reading →

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Selling in Chinese Yuan: A Tool for U.S. Exporters

"China's 'internationalization' of the RMB shouldn't be confused with liberalization; its borders are still far from porous when it comes to moving money, and the process comes with a lot of paperwork and bureaucracy, said Kok-Chi Tsim, managing director for international banking at J.P. Morgan Chase Bank N.A. in Chicago. Still, it could be worth it for many exporters as a means of cutting costs and attracting new customers, Mr. Tsim said at a breakfast seminar organized by the Georgia China Alliance and attended by more than 40 people.On average Chinese exporters charge about a 5 percent premium to settle transactions in U.S. dollars versus RMB." Continue reading →

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Chinese RMB likely to replace dollar in global trade

"Globally, the use of RMB has been increasing since 2009, when China launched a pilot programme to internationalise its currency by allowing the RMB to be used to settle cross-border trade. Since then, China’s trading partners have increasingly been able to use the RMB when paying for imports or receiving payments for exports. In 2012, 12 percent of China’s total trade was paid for in RMB, up from three percent in 2010. By 2015, HSBC expects that around 30 percent of China’s total trade — equivalent to around $2 trillion — will be settled in RMB. There are more than 30 markets worldwide conducting over 10 percent of their business with China in RMB." Continue reading →

Continue ReadingChinese RMB likely to replace dollar in global trade

China plans to allow yuan trade settlement for individuals this year

"China is looking into how individuals and small businesses can settle trade using yuan this year, a People's Bank of China official told Reuters on Monday, potentially opening a massive new conduit for Chinese currency to flow into global markets. At the same time, by allowing individual traders and companies, Beijing can help eliminate the risk of currency fluctuation for individuals and small enterprises in the import/export sector. Chinese individuals are only permitted to exchange the equivalent of $50,000 per year for use in overseas purchases or investments, but many companies have managed to get around these restrictions through trade." Continue reading →

Continue ReadingChina plans to allow yuan trade settlement for individuals this year

Year of the yuan: China’s explosive currency goes global

"Degenerating credit quality across the board has prompted asset managers to turn to the yuan, a currency that 10 years ago was completely off limits to foreign investors. An HSBC forecast projected that by 2015, the yuan will become one of the three most used currencies in global trade, in league with the dollar and euro. The report, issued in April, also foresees a third of China’s cross-border transactions being carried out in yuan. China has been making a concerted effort to establish itself as an international currency reserve. China already has agreements with Russia, Vietnam, Thailand, and Japan allowing trade to be settled in yuan instead of dollars." Continue reading →

Continue ReadingYear of the yuan: China’s explosive currency goes global

The biggest scams in Bitcoin history

"The Bitcoin world is a lovely place graced by anonymity and (almost) zero government interference. However, a while ago – when people didn’t know Bitcoin so well and security was less important – these characteristics made the currency prone to scams and theft. Here we unearth some of the greatest scams that have hit our favorite digital currency and hope that users will avoid suspicions situations in the future. Stay safe!" Continue reading →

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Kipochi launches first Bitcoin wallet in Africa with M-Pesa integration

"This enables Kenyans to receive money transfers from the diaspora in an easier, faster and cheaper way, compared to using banks and money transferring services such as Western Union and MoneyGram. Kipochi is a light weight easy to use BitCoin Wallet that allows users to receive and send BitCoin all over the world. Even for people using simple low cost feature phones. M-Pesa currently accounts for 31% of Kenya’s GDP. M-Pesa, the leading mobile payment system in Kenya and in the world, more than 70% of Kenya’s adult population uses Mpesa for small transfers, such as cash between family/friends, paying domestic help, utility bills etc." Continue reading →

Continue ReadingKipochi launches first Bitcoin wallet in Africa with M-Pesa integration

Bill Bonner: What I’m Doing With My Money Now

"Family offices have for hundreds of years been protecting and growing family wealth, based on a number of unique long-term investment strategies. They've also been helping families pass on their wealth through the generations. The skills necessary for building wealth – including the habits and the customs that allow you to hold onto it and pass it along to the next generation – can take a long time to accumulate. Why are the Swiss so wealthy, for example, and the Bolivians... or the Zimbabweans... or the Albanians... or the Baltimoreans... so poor? The Swiss have the habit of wealth; the others do not. There are some skills that take more than a generation to acquire." Continue reading →

Continue ReadingBill Bonner: What I’m Doing With My Money Now