|NZ Welcome Chinese Currency Trade Agreement|
New Zealand finance officials welcomed an agreement allowing direct trading of the New Zealand and Chinese currencies, saying they would build on the growing bilateral trade and investment ties.
Last year alone, trade in goods between New Zealand and China increased by more than 25 percent to 18.2 billion ($15.69 billion), making China New Zealand's top destination for goods exports. The New Zealand dollar was only the sixth currency to be traded directly with China's Renminbi, following the US dollar, the Japanese yen, the Australian dollar, the Russian rouble and the Malaysian ringgit. The agreement followed considerable work by the New Zealand Treasury and the People's Bank of China.
The license allows direct interbank trading of the currencies, meaning reduced transactional costs and over time increased liquidity to currency deals between New Zealand and Chinese trading partners.
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Published on our website on March 28, 2014