SHANGHAI, April 8: China and Australia will begin direct conversion of their currencies in a sign of growing business links, Australian Prime Minister Julia Gillard said on Monday on an official visit.

“The Australian and Chinese currencies will be directly traded on the Chinese mainland for the first time,” she told Shanghai’s China Executive Leadership Academy Pudong, a Communist Party school.

China, the world’s number two economy, is Australia’s largest trading partner according to Canberra, spending billions on resources it needs to fuel its growth, while Australia is China’s seventh largest partner.

The currency move allows the Australian dollar and Chinese yuan to be directly swapped without using the US dollar as an intermediary, making foreign trade settlement more convenient and cutting transaction costs.

“This reflects the rapid growth of our bilateral trade and the value of two-way investment — and it also creates opportunities for new financial integration,” Gillard said in a speech.—AFP

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.