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发帖数: 4825 | 1 http://www.bloomberg.com/news/2014-03-18/yuan-to-start-direct-t
China will start direct trading between the yuan and New Zealand’s dollar
starting today as the world’s second-largest economy promotes usage of its
currency in global trade and finance.
The move will help reduce foreign-exchange transaction costs between the two
nations, the People’s Bank of China said on its website yesterday. A
reference rate for the currency pair will be announced daily at 9:15 a.m. in
Shanghai, with yuan moves limited to 3 percent on either side of the fixing
, according to a separate statement on the China Foreign Exchange Trading
System website. The announcement coincides with a visit to Beijing by New
Zealand Prime Minister John Key.
The kiwi will become the fourth currency to be convertible into yuan,
joining the Australian dollar, the Japanese yen and the U.S. dollar. The U.K
. and Singapore announced deals with China in October to start direct
trading between their currencies and the yuan, which overtook the euro to
become the second-most widely used currency in global trade finance.
“Direct trading with New Zealand will help boost the global usage of yuan
through trade settlement and invoicing,” said Tommy Ong, executive director
of treasury and markets at DBS Bank Hong Kong Ltd. “It will also
contribute to lower transaction costs for companies since there’s no need
to go through two currency pairs but one.”
Surging Trade
Two-way trade between New Zealand and China surged 29 percent to NZ$18.86
billion ($16.3 billion) in the 12 months through January, government data
show, with the Asian nation overtaking Australia to become New Zealand’s
largest trading partner. HSBC Holdings Plc (HSBA) and Westpac Banking Corp.
(WBC) were among banks to receive approval from the PBOC to act as market
makers for the currency pair, the banks said in statements yesterday.
Chinese demand for New Zealand’s exports helped drive the kiwi up almost 20
percent against the dollar in the past three years, the biggest advance
among 16 major currencies. It reached 86.06 U.S. cents on March 13, the
strongest since April 2013. New Zealand’s merchandise shipments to China
jumped to NZ$9.97 billion in 2013, more than doubling since 2010 and
accounting for about 20 percent of the smaller nation’s overseas sales,
according to Statistics New Zealand.
South Korea, which also counts China as its biggest export market, is
considering seeking direct trading links between its currency and the yuan.
Vice Finance Minister Choo Kyung Ho said on Feb. 18 that the government will
support the implementation of direct trading if needed as demand for yuan
expands in the financial markets and for trade.
Yuan Band
China doubled the yuan’s trading band against the U.S. dollar this week to
2 percent on either side of a daily reference rate set by the central bank,
a step toward giving market forces a greater role in determining its
exchange rate. The PBOC also keeps its currency within 3 percent of fixings
against the euro, the British pound, the yen and the Hong Kong dollar, while
a 5 percent limit applies to the Malaysian ringgit and the Russian ruble.
“Direct convertibility marks another milestone in the internationalization
of the renminbi,” HSBC said in a statement on yesterday’s New Zealand
dollar announcement. “Coupled with China’s recent move to widen the daily
trading band of the renminbi, it further demonstrates the country’s
determination to speed up its financial market reform.”
The yuan has retreated 2.4 percent from its 20-year high of 6.0406 per
dollar reached on Jan. 14, after strengthening 2.9 percent in 2013. At least
five banks including Barclays Plc and Bank of America Corp. have trimmed
their yuan projections this week, citing concern economic growth is slowing
and higher currency swings under a broader band. The yuan fell 0.22 percent
to close at 6.1920 yesterday in Shanghai.
To contact the reporter on this story: Fion Li in Hong Kong at fli59@
bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@
bloomberg.net |
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