Japan And China To Launch Direct Currency Trading

Direct Currency Trading

Japan and China said on Tuesday they will start direct currency trading this week, marking the first time Beijing has let a major unit other than the dollar swap with the yuan.

The move, which will scrap the US currency as an intermediary unit, comes as China introduces measures as part of a long-term goal to internationalize its currency and rival the dollar as the world’s benchmark.

The yuan-yen trade — part of a wider deal reached last year between Beijing and Tokyo to forge closer ties — will also be allowed to move in a wider range than the narrow band at which the dollar and yuan change hands, Dow Jones Newswires and the Nikkei business daily reported.

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