Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Workers at a factory in China/FILE

World

China, Australia start direct currency trading

Workers at a factory in China/FILE

Workers at a factory in China/FILE

SHANGHAI, Apr 10 – China and Australia on Wednesday started direct trading of their currencies, dealers said, in a move seen as a boost to 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.

China, the world’s number two economy, is Australia’s largest trading partner according to Canberra, spending billions on resources it needs to fuel its growth, while Australia is China’s seventh largest partner.

The China Foreign Exchange Trade System said late Tuesday that direct trading would “promote bilateral trade and investment between China and Australia”.

China’s foreign exchange market started direct trading between the yuan and Japanese yen in June last year, while the US dollar is also directly traded with the Chinese currency.

Australia and New Zealand Banking Group, one of the market makers for the new trade, called the move a “milestone”, saying it would push forward convertibility of the yuan, according to a research report.

But Zhang Jianping, a researcher at China’s Institute of International Economic Research, called for more government efforts to make the yuan a global currency by reaching more such agreements with trading partners.

“It will be a long time before the (yuan) can become a major international currency,” he told the China Daily newspaper.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...