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Loop Launches Global Visa Card for Canadian SMEs in Multiple Currencies

2024-12-12

Loop, a prominent audit and payment platform specializing in next-generation supply chains, has made a significant announcement. It has launched the Loop Global Visa Card, specifically designed to meet the requirements of Canadian small and medium-sized enterprises (SMEs). This card aims to empower businesses in handling cross-border purchases and managing their financial operations more effectively.

Revolutionize Cross-Border Business with Loop's Visa Card

Loop's Partnership with J.P. Morgan Payments

In June 2024, Loop entered into a partnership with J.P. Morgan Payments. This collaboration was aimed at enhancing financial operations across the shipping industry. By joining forces, the two organizations focused on optimizing accessibility and profitability for shippers, carriers, and third-party logistics providers. The integration of Loop's logistics-AI solution with J.P. Morgan Payments' capabilities was intended to foster stronger relationships based on speed, transparency, and trust.This partnership serves as a foundation for the subsequent launch of the Loop Global Visa Card. It showcases Loop's commitment to providing comprehensive financial solutions and collaborating with industry leaders to meet the evolving needs of businesses.

Benefits of the Loop Global Visa Card

The Loop Global Visa Card offers a range of features and benefits that are crucial for Canadian SMEs engaged in international trade.Firstly, it enables multi-currency settlement. Businesses can manage their purchases in CAD, USD, EUR, and GBP and settle statement balances using the same local currency. This simplifies financial transactions and reduces currency conversion complexities.Secondly, the card provides improved conversion rates. Customers can utilize Loop's FX rates to automatically convert their balances to the currency of settlement. This helps in reducing the cost of international transactions and optimizing financial resources.Thirdly, custom spend controls are available. Companies can issue physical or virtual cards and set limits for total or recurring spending. This allows for better financial management and control over expenses.Employee misuse is also safeguarded. The card ensures that businesses have measures in place to prevent unauthorized use by employees.There are no annual fees imposed on businesses that apply and are approved for the Loop Global Visa Card. This provides a cost-effective solution for SMEs.Additionally, configurable expense management is offered. This includes customizable approval flows and integrated digital receipt capture through SMS or email. It streamlines the expense management process and enhances transparency.Finally, the card is integrated into Loop's financial platform. It merges with the capabilities of the company's treasury management, FX management, and global payment solutions, providing a seamless and unified financial ecosystem.In conclusion, the Loop Global Visa Card is a game-changer for Canadian SMEs. It offers a comprehensive set of features and benefits that enable businesses to expand their operations, manage cross-border transactions more efficiently, and enhance their financial management. With its partnership with J.P. Morgan Payments and its integrated platform, Loop is well-positioned to support businesses in the global marketplace.

The year 2025 is set to present significant challenges for the People's Bank of China (PBoC). With the continuous fight against depreciation pressure on the renminbi, it will be a long and arduous journey. The PBoC is expected to mount a strong defence, as a weaker renminbi could lead to even more US tariffs imposed on China. This situation has far-reaching implications not only for the Chinese economy but also for the regional and global financial markets.

"The PBoC's Battle Against Renminbi Depreciation in 2025"

Impact on the PBoC

In 2025, the PBoC will face a tough battle as it strives to maintain the stability of the renminbi. The depreciation pressure is a significant concern, and the central bank will need to employ various measures to counter it. This could involve adjusting interest rates, implementing capital controls, or using foreign exchange reserves. The outcome of this battle will have a direct impact on the Chinese economy and its global standing.

Moreover, the PBoC's actions in 2025 will also be closely watched by other central banks and financial institutions around the world. As China is one of the largest economies in the world, any significant movements in the renminbi can have a ripple effect on global financial markets. Therefore, the PBoC's decisions and strategies will be closely analyzed and evaluated.

Asian Currency Dynamics

While the PBoC is grappling with depreciation pressure on the renminbi, other Asian currencies are also facing their own challenges. The Korean won, for instance, shows no signs of respite. The ongoing trade tensions between Korea and other countries have put downward pressure on the won, and it remains to be seen how the situation will unfold in 2025. On the other hand, the Indian rupee and Indonesia's rupiah could hold up a little better. This could be attributed to various factors such as domestic economic conditions, trade relationships, and policy measures implemented by the respective governments.

However, it is important to note that the currency markets are highly volatile and unpredictable. Even if the Indian rupee and Indonesian rupiah show some resilience in 2025, they could still be affected by external factors such as global economic conditions, geopolitical tensions, and changes in monetary policies. Therefore, it is crucial for investors and market participants to closely monitor these currencies and stay informed about the latest developments.

The White House Watch newsletter offers a unique guide to understanding the implications of the 2024 US election on Washington and the world. It provides valuable insights into the complex economic and political landscape.

Your Key to Navigating the US Election's Impact

US Dollar's Surge and Its Impact on Emerging Markets

A surging US dollar has set off the biggest sell-off in emerging market currencies since the early stages of the Federal Reserve's aggressive rate-raising campaign. The JPMorgan index of EM currencies has fallen more than 5 per cent over the past two-and-a-half months, marking its biggest quarterly decline since September 2022. This decline is widespread, with at least 23 currencies tracked by Bloomberg falling against the dollar this quarter. The greenback's strength is driven by expectations that US president-elect Donald Trump will impose sweeping trade tariffs and loosen fiscal policy. For example, Trump's announcement of levies on imports from Mexico and China has had a significant impact. The Mexican peso has fallen 2.1 per cent this quarter, and China's offshore renminbi is down 3.7 per cent.Even when considering the interest earned from holding assets in local currencies, only very risky currencies like Turkey and Argentina have shown positive returns for investors this quarter. The breadth of the post-election sell-off has also affected carry trades, where investors borrow in lower interest rate currencies to buy higher-yielding EM currencies. A basket of popular EM carry trades tracked by Citi has returned only 1.5 per cent this year.

Specific Challenges Facing Different EM Currencies

Analysts note that weakness in the Mexican peso can be attributed largely to tariff developments. However, for many other EM currencies, the picture is more complex. In China, concerns about the slump in the domestic economy and the prospect of further central bank easing policy are weighing on the currency. Yields on China's benchmark 10-year bonds have fallen below 2 per cent to their lowest level in 22 years.In Brazil, concerns about deficits and debt sustainability are driving the real to record lows. It has broken through the threshold of six to the dollar despite a new government promise to find cost savings. "Brazil has a fiscal crisis on its hands," says Ed Al-Hussainy.In South Korea, the won was hit after President Yoon Suk Yeol declared martial law (a decision he later retracted). The surging dollar has also pushed the euro lower, affecting EM currencies that "orbit the euro" like the Polish zloty and the Hungarian forint.Macquarie's Thierry Wizman highlights that the sell-off in developing market currencies has revived the "Tina" investment narrative, suggesting there is no alternative to investing in the US. "There aren't any emerging markets these days that stand out as having robust economic stories," he adds.Additional reporting by Joseph Cotterill in London provides further context and details to this complex economic story.