Japan and China will start direct currency trading
Japanese Finance Minister Jun Azumi announced on Tuesday May 28 that Japan and China will begin direct currency trading as from June 1, scrapping the dollar as an intermediary unit.
The new procedure between Japan and China is aiming to boost trade and investment between the world's second-and third-largest economies. It is also a part of several movements of China in order to internationalize its currency to rival the dollar.
“From June 1, the yen-yuan exchange rate will be constantly indicated in both markets, facilitating full-fledged direct exchange trading,” Japan's Finance Minister Jun Azumi said.
He also stated that by not using the dollar as an intermediate currency,one can lower transaction costs and reduce settlement risks at financial institutions as well as making both nations currencies more useful.
China Foreign Exchange Trade System claimed that this move is to promote bilateral trade, facilitate the use of the yuan and the yen in international trade settlements and lower the cost of conversion,
According to the reports released,China will set a daily rate based on dealer quotes with trade allowed to move within a 3.0 percent band above or below that rate ,compared with a 1.0 percent band fixed to yuan-dollar trading.
Κακός οιωνός η αμφισβήτηση του αμερικανικού νομίσματος.
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