Direct currency trading started by Australia and China


china
#1
Direct currency trading started by Australia and China | China National News




Direct currency trading started by Australia and China

China National News Wednesday 10th April, 2013
The move allows the Australian dollar and the yuan to be directly swapped without using the US dollar as an intermediary currency
Australian dollar has become the third currency, along with the US dollar and the Japanese yen, to trade directly with the Chinese yuan
ANZ and Westpac are to become the first Australian banks to help businesses directly trade Australian dollars for the Chinese yuan.
BEIJING - China and Australia on Wednesday began direct trading of their currencies in a move expected to boost bilateral business ties and international use of the Chinese yuan.
The move allows the Australian dollar and the yuan to be directly swapped without using the US dollar as an intermediary currency, making foreign trade settlement more convenient and cutting transaction costs.
The Australian dollar was quoted at 6.5118 yuan at midday Wednesday on China's national foreign exchange market.
Australian Prime Minister Julia Gillard announced the move in a speech on Monday while on an official visit to China.
The Australian dollar has become the third currency, along with the US dollar and the Japanese yen, to trade directly with the Chinese yuan.
The move is seen as a significant step in China's push for a more international role for its currency.
Beijing is trying to promote the yuan as an alternative to the US dollar's role as a global reserve currency.
"The yuan is on its way to becoming fully convertible," said Stuart Oakley, managing director at Nomura.
"This ties in with a trend that we have been observing for a some time. And being fully convertible is a pre-condition to becoming a reserve currency," BBC quoted him as saying.
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Tecumsehsbones
#2
Makes sense. Can't see why the Chinese and Australians should go through the U.S. dollar to trade currency.