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

Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

An audit of polio funds at federal and provincial levels is sorely needed, with obstacles hindering eradication efforts targeted.
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...
Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...