China and Japan started direct currency trading on Friday as Beijing
marked another stage on its journey to foster the yuan’s use
internationally in line with its growing economic clout.
Market
participants can now swap Japanese yen for Chinese yuan without having
to use the US dollar as an intermediary currency, making foreign trade
settlement more convenient and cutting transaction costs.
The move
comes as China, the world’s second-largest economy just ahead of Japan,
gradually moves to make the yuan freely convertible with an eye towards
rivalling the mighty dollar, analysts said.
China maintains a
tight grip on its currency, which is not convertible on the capital
account, over fears that speculative flows could hurt its economy. That
policy has long fostered trade tensions with the United States.
read more here
No comments:
Post a Comment