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The Chinese central bank, PBOC, has agreed to establish direct trading between its yuan currency and seven foreign currencies. In an announcement made on its website earlier today, the central bank noted that China will start direct trading between the Yuan and seven more currencies starting Monday December 12th.
The seven foreign currencies against which yuan direct trading will be established include the Norwegian krone, Mexican peso, Polish zolty, Swedish krone, Denmark krone, Hungarian forint and Turkish lira will begin on Dec. 12, the China Foreign Exchange Trade System (CFETS) said in a statement on its website.
Meanwhile, the CFETS, the interbank trading and foreign exchange division of PBOC, said that the purpose of commencement of direct trading between the Yuan and other currencies is to facilitate bilateral trade and investment with these countries and lower exchange rate costs.
