Australian Dollar to Trade Directly with Chinese Yuan

The Australian dollar has become the third currency, along with the US dollar and the Japanese yen, to trade directly with the Chinese yuan.

The move is seen as a significant step in China’s push for a more international role for its currency.

Beijing is trying to promote the yuan as an alternative to the US dollar’s role as a global reserve currency.

“The yuan is on its way to becoming fully convertible,” said Stuart Oakley, managing director at Nomura.

“This ties in with a trend that we have been observing for a some time. And being fully convertible is a pre-condition to becoming a reserve currency.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza