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Direct trade of yuan, pound from today

June 19, 2014

China will allow the yuan to be exchanged directly for British pounds from today in Shanghai as the world's second-largest economy promotes the use of its currency in global trade and finance.

"This is an important step in strengthening bilateral economic and trade connections between China and the United Kingdom," the People's Bank of China said in a statement on its website. The move will help lower foreign-exchange transaction costs between the two nations, it added. The pound will become the fifth major currency to trade directly against the yuan in Shanghai, joining the Australian and New Zealand dollars, the Japanese yen and the US dollar. China's currency ranked seventh for global payments in April, according to the Society for Worldwide Interbank Financial Telecommunications, and the UK trailed both Hong Kong and Singapore in handling these transactions. Plans were announced in October to make the Singapore dollar convertible into yuan.

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Source: Khaleej Times (United Arab Emirates)

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