PBOC: China, Japan to back financial trade CCTV News

Chinese Premier, Wen Jiabao, has told visiting Japanese Prime Minister Yoshihiko Noda that China is willing to work with Japan in promoting the direct use of their respective currencies in bilateral trade. China's central bank announced shortly after talks between Wen and Noda, that it would encourage the direct use of the RMB and Japanese yen in cross-border transactions. The People's Bank of China announced on its website that the Chinese and Japanese leaders agreed to strengthen cooperation in the financial markets of the two countries, and encourage more bilateral financial transactions. The PBOC encouraged Japan to make direct RMB investments in China. According to Japan's Finance Ministry, China is Japan's biggest trading partner - currently about 60 percent of trade transactions between the two nations are settled in US dollars. The promotion of direct yuan-yen trades aims to reduce currency risks and trading costs. The Chinese central bank said that applications are currently underway from Japan to buy Chinese government bonds, but little details were provided. The statement says the PBOC supports the development of the direct trading market of the RMB and Japanese yen. The PBOC says, it also allows Japanese companies to issue RMB bonds in Tokyo and other overseas markets. It also approved a trial program of RMB-bonds issuance by the Japan Bank for International Cooperation in China. The PBOC said in October that foreign institutional and individual investors ...

View Count: 2 Date: December 26, 2011