Together with the People's Bank of China, we announce today an agreement to launch direct trading between the Australian Dollar (AUD) and the Chinese Renminbi (CNY).
Direct trading between the two currencies will commence on the China Foreign Exchange Trade System (CFETS) and the Australian foreign exchange market on 10 April 2013.
This is an important step forward in advancing the burgeoning economic relationship between our two countries.
Australia and China will make further efforts to facilitate the development of direct AUD/CNY trading.
As China continues to move its economy towards greater financial openness, Australia stands ready as a key trading partner to work with China and to bring our financial markets closer together.
The development of direct trading between the AUD/CNY will over time help lower currency conversion costs, facilitate the use of CNY and AUD in bilateral trade and investment, and promote financial cooperation between our two countries.
Australian and Chinese banks have been consulted on the proposal and have expressed a willingness to act as market makers to support the direct trading between the AUD/CNY both in Australia and China.
Developing regional markets to the benefit of Australian businesses is an aspiration of the Australia in the Asian Century White Paper.
We will continue to explore opportunities for further financial sector cooperation between China and Australia.
Australian officials will continue to work closely with the Chinese officials to this end.