Australia and China have launched direct trading between their currencies, according to a joint statement from the Office of Deputy Prime Minister and Treasurer, Wayne Swan, and the People's Bank of China.
Direct trading between the Australian dollar (AUD) and Chinese renminbi (CNY) commenced on the Australian foreign exchange market and China Foreign Exchange Trade System (CFETS) on April 10.
HSBC China has since announced its approval via China's central bank to be one of the first market makers for direct trading of the CNY and AUD in China's interbank foreign exchange market.
The development of direct trading between the AUD and CNY will help lower currency conversion costs and facilitate the use of the CNY and AUD in bilateral trade and investment, according to the statement.
"Australian and Chinese banks have been consulted on the proposal and have expressed a willingness to act as market makers to support the direct trading between the AUD and CNY both in Australia and China," the statement read.
"We will continue to explore opportunities for further financial sector cooperation between China and Australia," it added.
