&w=3840&q=100)
Despite China's ambitions, renminbi in no position to topple dollar
The Donald Trump administration is pushing the United States (US) into uncharted territory in so many ways that it's difficult to gauge where and how things will eventually settle
Business Standard Editorial Comment Mumbai
Listen to This Article
People's Bank of China Governor Pan Gongsheng on Wednesday made a strong pitch for a multipolar international monetary system and warned against excessive reliance on a single currency. The message clearly is to shift away from the dollar-denominated global financial system. China has been consistently trying to project the renminbi (RMB) as an international currency. Six foreign banks announced on Wednesday that they would use China's Cross-Border Interbank Payment System, an alternative to the SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment system. In principle, there is merit in the argument that the world should not rely on one currency
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Trump's ‘One Big Beautiful Bill' clears first Senate hurdle: Republican race for votes, criticism, proposals
The Republican majority-held United States Senate voted on and pushed through US President Donald Trump's much touted tax-cuts and spending proposal, dubbed as the 'One Big Beautiful Bill' Act today (late Saturday local time), according to reports. The US Senate voted 51-49 to pass the first Senate hurdle, and Donald Trump took to social media to celebrate, calling it a 'great victory' and crediting Republican lawmakers Rick Scott, Mike Lee, Ron Johnson, and Cynthia Lummis for 'fantastic work'. In his 'victory' post on Truth Social, Donald Trump said he will work on growing the US economy, 'reduce wasteful spending, secure our border, fight for our military and veterans, ensure that our medicaid system helps those who truly need it, protect our second amendment, and more…' The 'rare' weekend session began with a debate on the 940-page sweeping bill, with opposition from Democrats and two Republicans. The legislation seeks to fund Donald Trump's campaign promises on border control, military spending, immigration, and tax-cuts. After hours of delay US Vice President JD Vance worked to pursuade Republican lawmakers on the fence and delivered the 'tie-breaking vote', according to reports by Reuters and AP, respectively. Democrats have demanded that the Bill be read out in Chamber, and will be followed by 20 hours of debate, followed by amendment sessions before the bill is complete. The full process is expected to end by June 30. A senior White House official told Reuters that Donald Trump was monitoring the vote from the Oval Office late into the night. According to an analysis by the nonpartisan Joint Tax Committee, the Senate version of the bill's tax provisions would reduce government revenue by $4.5 trillion over the next decade, increasing the $36.2-trillion US government debt. The White House said this month the legislation would reduce the annual deficit by $1.4 trillion. As per the AP report, an estimate from the nonpartisan Congressional Budget Office showed that the House-passed version of Trump's tax bill would cost around 10.9 million more people their healthcare, and at least 3 million food aid. Top income-earners would see about a $12,000 tax cut under the House bill, while the package would cost the poorest Americans $1,600, the CBO said. Meanwhile, Elon Musk has renewed his criticism of Donald Trump's tax plan in a scathing post on social media platform X. He called the bill 'utterly insane and destructive.' He wrote: 'The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!' Democrats will focus their firepower with amendments aimed at reversing Republican spending cuts to programs that provide government-backed healthcare to the elderly, poor and disabled, as well as food aid to low-income families. (With inputs from AP and Reuters)
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Indian auto delegation yet to leave for China for rare earth magnets talks
Indian Auto industry representatives are yet to leave for China to expedite the import of rare earth magnets as the delegation is still awaiting a formal go-ahead from the Chinese commerce ministry for a meeting, as per industry sources. Around 40-50 industry executives have received visas last month, but are still awaiting a formal nod from the Chinese authorities for the meetings on the matter. Staring at shortages, the domestic automobile industry has also sought government support in expediting approvals from China to import rare earth magnets. "They (Chinese authorities) have not given any appointment so far, so the delegation is yet to leave. Situation is bad as not even a single license has been issued to us so far," a source told PTI. If the situation remains like this, the domestic automobile industry will be staring at shortages resulting in significant production losses, the source added. The domestic auto industry is forced to take steps as the Chinese government has put restrictions since April 4 this year on the export of rare earth elements and related magnets. China has mandated special export licences for seven rare earth elements and related magnets. The country controls over 90 per cent of the global processing capacity for magnets, used across sectors, including automobiles, home appliances and clean energy. The critical materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology. Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. In internal combustion engine (ICE) vehicles, the use of rare earth magnets is largely limited to electric power steering and other motorised systems. In April this year, China, the world's dominant exporter of rare earth magnets, imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences. The revised framework demands detailed end-use disclosures and client declarations, including confirmation that the products will not be used in defence or re-exported to the US. India, which sourced over 80 per cent of its 540 tonnes of magnet imports from China last fiscal, has started to feel the impact. By May 2025, nearly 30 import requests from Indian companies were endorsed by the Indian government, but are yet to be approved by the Chinese authorities, and no shipments have arrived. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
NDTV
an hour ago
- NDTV
Trump's Sweeping Tax-Cut, Spending Bill Clears First US Senate Hurdle
The Republican-controlled US Senate advanced President Donald Trump's sweeping tax-cut and spending bill in a key procedural vote late on Saturday, raising the odds that lawmakers will be able to pass his "big, beautiful bill" in the coming days. The measure, Trump's top legislative goal, passed its first procedural hurdle in a 51 to 49 vote, with two Republican senators voting against it. The result came after several hours of negotiation as Republican leaders and Vice President JD Vance sought to persuade last-minute holdouts in a series of closed-door negotiations. The procedural vote, which would start debate on the 940-page megabill to fund Trump's top immigration, border, tax-cut and military priorities, began after hours of delay. It then remained open for more than three hours of standstill as three Republican senators - Thom Tillis, Ron Johnson and Rand Paul - joined Democrats to oppose the legislation. Three others - Senators Rick Scott, Mike Lee and Cynthia Lummis - negotiated with Republican leaders into the night in hopes of securing bigger spending cuts. In the end, Wisconsin Senator Johnson flipped his no vote to yes, leaving only Paul and Tillis opposed among Republicans. Trump was monitoring the vote from the Oval Office late into the night, a senior White House official said. The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security. Nonpartisan analysts estimate that a version of Trump's tax-cut and spending bill would add trillions to the $36.2-trillion U.S. government debt. Democrats fiercely opposed the bill, saying its tax-cut elements would disproportionately benefit the wealthy at the expense of social programs that lower-income Americans rely upon. Chuck Schumer, the Senate's top Democrat, demanded that the bill be read aloud before debate could begin, saying the Senate Republicans were scrambling to pass a "radical bill". "If Senate Republicans won't tell the American people what's in this bill, then Democrats are going to force this chamber to read it from start to finish," the New York Democrat said.
