China to start yuan-pound direct trades
June 19, 2014, 12:00 am TWN
SHANGHAI -- China will start direct trade between its yuan currency and Britain's pound on Thursday, the country's foreign exchange trade platform said, in another step on its push to internationalize the unit.
Sterling and the Chinese renminbi, the yuan's other name, will be directly swapped from June 19 without using the US dollar as an intermediary, the China Foreign Exchange Trade System (CFETS) said in a statement Wednesday.
China has long had direct currency trade with the United States, and in recent years has added Japan's yen, the Australian, New Zealand and Canadian dollars, Russia's rouble and the Malaysian ringgit to the options.
The move will "promote the bilateral trade and investment between China and the United Kingdom" and "facilitate the use of renminbi and pound in the cross-border trade and investment settlement," said the CFETS statement.
The People's Bank of China (PBoC), the country's central bank, called it "an important move for China and Britain to jointly promote further development in their bilateral economic and trade relationship."
The announcement came as Chinese Premier Li Keqiang continued an official visit to London, during which he witnessed the signing of trade deals worth more than #14 billion ($28 billion, 17 billion euros).