Beijing (CNS) -- The first direct RMB trade against the Australian dollar (AUD) and the Canadian dollar (CAD) on the interbank foreign exchange market was accomplished on November 28, announced the Bank of China (BOC) on the same day.
The central parity rates of the AUD and CAD against the RMB will be based on the RMB against the US dollar on the same business day and the exchange rates of the AUD and CAD against the US dollar at 9 a.m. of the same business day, which will be announced together with other central parity rates by the China Foreign Exchange Trade System (CFETS) at 9:15 a.m. every business day, according to a CFETS statement on November 24.
The BOC also announced it will seize this opportunity to realize further goals such as the RMB international settlement, RMB trade financing, as well as the sale and purchase of the RMB against the AUD and CAD, thus raising the competitiveness of the RMB in the foreign exchange market.
This marks as another significant step in the internationalization strategy for the RMB. Addition of the AUD and CAD follows interbank trading already established between the RMB and the US dollar, HK dollar, Japanese yen, euro, British pound, Malaysian ringgit, and Russian ruble.
