China will launch direct trading of yuan with seven more currencies on its inter-bank foreign exchange market from next week, according to the country’s foreign exchange trade system. The seven currencies are Swedish krona, Hungarian forint, Danish krone, Polish zloty, Mexican peso, Turkish lira and Norwegian krone, said China Foreign Exchange Trade System (CFETS).
The move will bring the number of foreign currencies that are allowed direct trading with the yuan to 23, state-run ‘Xinhua’ news agency reported late last night.
The CFETS currently announces every business day the central parity rates of the yuan against major currencies including the US dollar, euro and Japanese yen.
The direct trading will help lower exchange costs and facilitate bilateral trade and investment, the CFETS said. To promote the global use of the yuan and open up financial markets, China has stepped up the signing of direct trading agreements with new currencies.