(Updates with comments from Dai Xianglong in fourth paragraph.)
Nov. 24 (Bloomberg) -- China will allow trading of the Australian and Canadian dollars against the yuan, another step toward its aim of globalizing its currency.
The move will take effect Nov. 28, according to a statement on Chinamoney.com.cn, a website of the China Foreign Exchange Trade System. The world’s second-largest economy is allowing greater use of the yuan, which is not yet fully convertible, in international trade and finance as it seeks to reduce its reliance on the greenback.
Traders can already buy and sell the yuan against the dollar, the euro, the Japanese yen, the Hong Kong dollar, the British pound, and the Malaysian ringgit. Last November, China started allowing the yuan to trade against the Russian ruble in the interbank market.
Dai Xianglong, a former People’s Bank of China governor, said the yuan may be fully convertible in a decade and a reserve currency for many nations’ central banks in 15 years, China News Service reported yesterday. The yuan will be widely used in international trade settlement in five years, the report said, citing Dai, who now heads China’s national pension fund.
--Victoria Ruan. Editors: Andrew Janes, Sandy Hendry
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