Yuan One Step Closer To Internationalization With NZD/CNY Green Lighted

China has allowed direct domestic trading of the yuan against the New Zealand dollar to encourage such trading as it internationalizes the Chinese currency.

The move, announced on Tuesday by the central bank during a visit by New Zealand Prime Minister John Key to Beijing, comes after China doubled the yuan’s trading band over the weekend in a milestone step that gives investors more freedom to set the value of the tightly controlled currency.

China is New Zealand’s largest export destination and a major buyer of dairy products produced in the South Pacific nation. The move was seen as promoting trade between the two countries, which rose 25.2 percent to NZ$18.2 billion ($15.71 billion) in 2013, and increase capital flows.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu