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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Mingze Wu
centers on forex and macro-economic trends impacting the Asia Pacific region.
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