BEIJING, April 9 (Reuters) - China will start the direct trading of Chinese yuan and the Australian dollar in onshore foreign exchange market in Shanghai on Wednesday, the operator of the China’s currency market said.
China Foreign Exchange Trade System made the announcement on its website, www.chinamoney.com.cn
The People’s Bank of China, the central bank, said it would actively support the direct trading between the two currencies.
“The direct trading between Chinese yuan and Australian dollar will help reduce forex conversion costs, promote the use of two currencies in the bilateral trade and investment,” the central bank said in a statement on its website.
Reuters had earlier reported that China and Australia would launch direct trading between the two currencies in Shanghai and Sydney within weeks to lower trade transaction costs.
Australian Primer Minister Julia Gillard said on Monday China has authorized Australia and New Zealand Banking Group (ANZ) and Westpac Banking Corporation to be market makers for direct trading of China’s yuan and the Australian dollar.
China has launched other new currency pairs in recent years , including with the Canadian dollar, Malaysian ringgit and Hong Kong dollar, but the exchange rates for these pairs are still calculated based on the corresponding U.S. dollar rates. (Reporting by Aileen Wang and Kevin Yao)