China to start direct currency trading with Japan

AP News

5/29/2012 6:15:53 AM - AP News

China and Japan have agreed to start direct trading of their currencies from this Friday as Beijing takes a step toward making the yuan more of a global currency.

Until now, China has only allowed direct trading between the yuan and the U.S. dollar.

The People's Bank of China said Tuesday that it had authorized the move to help improve the foreign exchange market, promote Sino-Japanese cooperation and the development of China's capital markets.

China has long pledged to loosen tight controls on its currency.

The move to allow direct trading of yen and yuan is a step in that direction, which will also streamline foreign exchange dealings.