HSBC Holdings PLC plans to start spot trading between the yuan and the Turkish lira in March as China boosts the international role of its currency.
Converting lira into yuan will cut foreign-exchange transaction costs for Turkish companies doing business with China by 5 percent to 7 percent compared with dealing in dollars, Virma Sokmen, head of corporate banking at HSBC in Turkey, said at a news conference in Istanbul.
“The renminbi could be one of three most-traded currencies in a short while,” HSBC said in a statement yesterday. “Thanks to China’s overseas trade and investment volume, the renminbi can become an international reserve currency.”
China, the fastest-growing major economy, is challenging the dominance of the dollar as the world’s major reserve currency. Chinese Premier Wen Jiabao (溫家寶) said in March he was “worried” about holding US assets after the financial crisis hobbled the world’s largest economy.
Yuan spot trading began versus the Russian ruble and Malaysia’s ringgit last year. China also allowed offshore trading of the currency in Hong Kong and opened its bond market to foreign banks.
Turkish exports to China grew to US$2.1 billion in the year to November last year from US$1.6 billion for full-year 2009, according to Turkey’s official statistics agency in Ankara. Imports expanded to US$15.3 billion from US$12.7 billion in the same period.
China will conduct more than half of its foreign trade in yuan in 2015, to the value of US$2 trillion, HSBC said.
Turkey is trying to deepen ties with emerging markets at a time when its talks to enter the EU have stagnated, said Simon Quijano--Evans, chief economist for emerging Europe, the Middle East and Africa at Credit Agricole Chevreux SA in Vienna.
China was Turkey’s 13th biggest export market and its third-biggest source of imports after Russia and Germany as of November, according to Turkey’s statistics agency.
HSBC Turkey has a correspondent bank agreement with HSBC China, which gets the yuan from China’s central bank.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US