RMB Further "Open To Sea" Opens New Zealand Dollar Direct Paction

After the promulgation of the policy of < p > RMB third expansion, < a href= "//www.sjfzxm.com/news/index_q.asp > > policy < /a >, the foreign exchange market has issued heavy news.

Along with New Zealand's premier John Ki's visit to China on the 18 day, the Yuan's direct trading on New Zealand dollar opened on the 19 th.

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< p > the China Foreign Exchange Trading Center announced that institutions with interbank RMB foreign exchange market membership can conduct pactions.

The Yuan's trading price for New Zealand dollar fluctuated within 3% of the central parity of RMB against the New Zealand dollar announced by the China foreign exchange trading center.

On the first day of direct trading, 1 New Zealand dollar was 5.2899 yuan.

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< p > reporter learned from HSBC that HSBC China has been approved to become the first market maker to start a direct paction of RMB against "a href=" //www.sjfzxm.com "New Zealand dollar" /a ".

"The introduction of the direct trading of RMB and New Zealand dollar is another important milestone in the process of RMB internationalization," said Huang Bijuan, vice president, President and chief executive officer of HSBC China. "This latest progress and the recent measures to expand the floating rate of the RMB against the US dollar all indicate China's determination to accelerate the reform of the financial market."

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< p > China and New Zealand have strong complementarity in trade. Since the signing of the free trade agreement between the two countries in 2008, trade and investment between China and New Zealand have increased rapidly. At present, China has become the largest trading partner of New Zealand.

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< p > the RMB to New Zealand currency is less than a href= "//www.sjfzxm.com/news/index_s.asp" > direct trading < /a >, Bank of China [2.85% Fund Research Report] Wen Bin, director of macroeconomic research at the International Finance Research Institute, believes that this is a concrete manifestation of financial support for trade and investment facilitation, which helps both sides reduce their exchange costs and help strengthen financial cooperation between the two countries.

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At the same time, P will further help the renminbi to "go to sea".

Zhao Qingming, an expert on international financial issues, said that the direct trading of RMB against New Zealand dollar would help to promote the use of RMB and New Zealand dollar in bilateral trade and investment.

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< p > industry insiders told reporters that in fact, this matter has been prepared for a long time.

As early as April 18, 2011, the people's Bank of China and the New Zealand Reserve Bank signed a bilateral currency swap agreement amounting to 25 billion yuan in Beijing to strengthen bilateral financial cooperation and promote bilateral trade and investment.

The above agreement is valid for 3 years and can be extended by mutual consent.

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< p > "now it seems that the 3 year agreement is about to expire. At this time, it is a good time to realize direct currency exchange between China and New Zealand. Secondly, the momentum of RMB appreciation has been curbed, and the RMB exchange rate tends to be short-term equilibrium with the US dollar. Third, China first surpassed the United States last year to become the world's largest cargo trading country, and China's demand for RMB in trade, investment, financing, settlement and other aspects is increasing day by day, and RMB internationalization is facing an unprecedented opportunity."

Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce and international trade and economic cooperation, told reporters.

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< p > trade between China and New Zealand is relatively small.

Wen Bin said: "in 2013, the import and export volume of China and New Zealand accounted for 0.3% of China's foreign trade volume.

In the same period, Australia accounted for 3.3% of China's foreign trade. Last year, the yuan traded directly against the Australian dollar.

Looking forward to the future market prospect of RMB and New Zealand's direct trading, Wen bin predicts that trade between China and New Zealand will maintain a relatively fast growth rate, and that the advantage of RMB's direct trading with New Zealand dollar will emerge.

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< p > however, analysts say frankly, "from the exchange rate perspective, from indirect to direct process can not be accomplished overnight.

In the early days, the path of the formation of China and the New Zealand currency may still be inseparable from the US dollar - New Zealand dollar pfer mode.

Bai Ming said, "with the increase of bilateral trade, investment, bond, tourism, study and other aspects, the weight of the two countries' own factors on the direct exchange rate will gradually increase."

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< p > at present, about 12% of China's foreign trade is carried out by < a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB < /a >.

HSBC expects this proportion to increase to 30% by 2015.

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