Tracking China’s currency swap deals with other countries and reducing dependence of US Dollar for international trade.
“The deal is expected to reduce cost for businesses, as they will be able to settle trade terms in local currency.”
“It is the latest in a series of similar deals signed by Beijing as it seeks a more global role for the yuan.”
“China has been trying to promote the yuan as an alternative global reserve currency to the US dollar.”
“Analysts said the latest deal with Australia, which is one of the biggest supplier of minerals and natural resources such as coal and iron ore to China, is a major step in Beijing’s quest for a global role for its currency.”
““It puts a major stamp of approval on the Chinese Yuan and is a shot in the arm in the process of its internationalisation,” said Dariusz Kowalczyk of Credit Agricole CIB.”
“Such a move has been cited as key to the yuan becoming more internationally acceptable as a reserve currency.“