Direct yuan-yen trading could start in June: Media
TOKYO, May 26 – Japan and China plan to start direct trading of the yen and yuan as early as June, aiming to make trade and financial transactions between the countries easier, Japanese media reported today.
The step follows an agreement between the leaders of Asia’s two largest economies in December to promote direct trading of their currencies without the interim step of using dollars to set exchange rates.
The two countries are planning to set up markets in Tokyo and Shanghai for this trading, the Yomiuri newspaper and other media reported.
Despite sometimes rancorous political ties between the two neigbours, Japan’s economic fortunes are increasingly tied to China’s economic growth and consumer demand. China has been Japan’s biggest trading partner since 2009.
The establishment of direct trading between the currencies should lower risks tied to fluctuations in the dollar and reduce transaction costs, media said. – Reuters