Japan, China to begin yen-yuan direct trading as early as June
BEIJING, May 26, Kyodo
Japan and China are expected to start direct trading of their currencies as early as in June as part of efforts to boost bilateral trade and investment, financial sources in China said Saturday.
With the new step, exchange rates between the yen and the yuan will be determined by their transactions, departing from the current ”cross rate” system that involves the U.S. dollar in setting yen-yuan rates.
It will be the first time that China has allowed a major currency except the dollar to directly trade with the yuan, also known as the renminbi, the sources said.