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China's Central Bank Approves Currency Trading With Britain

June 18, 2014

Beijing (Alliance News) - China's central bank on Wednesday said it had approved direct trading between its renminbi currency and the British pound.

The currencies will be directly convertible on the inter-bank foreign exchange market from Thursday, allowing businesses on both sides to reduce costs, the People's Bank of China said.

"This is an important step in strengthening bilateral economic and trade connections between China and the UK," the bank said.

Both nations will make efforts to "promote the direct trading between the two currencies based on market principles," it said.

It said the move will "contribute to the formation of a direct exchange rate between the two currencies."

The currency agreement is one of several high-profile bilateral deals signed during Chinese Premier Li Keqiang's ongoing visit to London.

Contracts worth 14 billion pounds were signed between British and Chinese companies on Tuesday, Prime Minister David Cameron said at a joint press conference with Li.

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Source: Alliance News

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