Australia To Push for Direct Yuan Exchange!

• One more nail in the USD world reserve currency coffin!
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  Australia to push for direct yuan exchange! 
  by Alicia Barry, http://www.abc.net.au/news/ 
  Australia is hoping to become the third country in the world to be able to directly convert its currency into Chinese yuan. The Treasurer Wayne Swan will push the case at a currency forum in Hong Kong and during meetings with Chinese leaders in Beijing next week.
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  Analysts say Australia’s push to directly convert its currency into yuan will make trade with China more efficient and will lower transaction costs, particularly for the country’s big miners and importers. ANZ currency strategist Andrew Salter says currently they have to go through the US dollar or Japanese yen first.
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  “You don’t have to do that interim step – you can convert directly from renminbi into Australian dollars and therefore avoid one layer of transaction costs associated with the deal – so primarily a means to remove that extra layer of cost, so its an efficiency advantage,” he said.
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  However, Mr Salter says the deal is unlikely to move currency markets, as China’s capital account remains shut. “Those investment transactions that are speculative in nature are still not possible,” he said. “So, for example, the deal that is being discussed only pertains to companies that have trade linkages in China and in Australia so it will facilitate deeper trade linkages.”
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  Currently only the US and Japan can directly convert their currencies directly into yuan.

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