-China to launch onshore trading of Australian, Canadian dollars against yuan.
Global Banking News - 21 November 2011
China is planning to launch onshore trading of the Australian dollar and Canadian dollar against the yuan, Dow Jones has reported, citing unidentified trading sources.
Two weeks ago, the central bank-supervised China Foreign Exchange Trade System (CFETS) has issued a verbal notice to banks to begin technical preparations for trading of the new currency pairs, which may be launched by the end of November, the sources reportedly said. CFETS is yet to issue final rules, including the size of the trading band, or a date for the launch, they added.
Presently, China allows trading of the yuan against the US dollar, the euro, pound, yen, Hong Kong dollar, Malaysian ringgit and Russian rouble. It currently allows onshore trading of currency crosses of currencies other than the yuan versus the Australian and Canadian dollars.
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