The central bank governor of China said that the central bank in both China and Australia are discussing the launch of direct trading between the yuan and the Australian dollar and if what has to achieve this will be the Australian dollar third major currency is allowed to trade directly with the Chinese currency after the U.S. dollar and the Japanese yen.
The governor Zhou Xiaochuan that the major currencies used as intermediaries for trading between the two currencies are sometimes unstable.
In an interview with the media on the sidelines of the National Conference of the Communist Party of China Zhou told reporters that relations between trade, investment and tourism between China and Australia has been growing rapidly over the past years resulting in increased demand for direct trading of currencies.
He said the central bank in both China and Australia support the direct trading and such direct trading would be useful and natural and respects the choice of the market.
The China announced last May direct trading of its currency against the Japanese yen, which near the yuan's another step to become a global currency.
China is taking steps to internationalize the yuan and facilitate its use in trade and cross-border investment and has signed agreements for the exchange of currency worth at least 5.1 trillion yuan, or the equivalent of 238 billion U.S. dollars with 12 countries.
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