China, Japan to back direct trade of currencies without using U.S. dollars

December 26, 2011

Business, International

China, Japan to Back Direct Trade of Currencies

 

 

Yoshihiko Noda, prime minister of Japan, left, is greeted by Wen Jiabao, prime minister of China, during a welcoming ceremony at the Great Hall of the People in Beijing. -Nelson Ching/Bloomberg

By Toru Fujioka
Bloomberg

Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen- yuan settlement should reduce currency risks and trading costs, the Japanese and Chinese governments said.

China is Japan’s biggest trading partner with 26.5 trillion yen ($340 billion) in two-way transactions last year, from 9.2 trillion yen a decade earlier. The pacts between the world’s second- and third-largest economies mirror attempts by fund managers to diversify as the two-year-old European debt crisis keeps global financial markets volatile.

http://www.bloomberg.com/news/2011-12-25/china-japan-to-promote-direct-trading-of-currencies-to-cut-company-costs.html

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One Comment on “China, Japan to back direct trade of currencies without using U.S. dollars”

  1. URL Says:

    Enjoyed reading by way of this, quite very good stuff, thankyou . 490205

    Reply

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