- 20 years on, no one forgets Highland Towers
- Haniff Omar's son dies after falling into drain
- Saudi beheads man for incest
- PM launches new-look Proton Perdana as govt's official car
- 'Sound of Music' actress dies at 91
- Bangladesh Islamist to be hanged after midnight
- Take photo at counter
- A town that's on its way to become a city
- China sex workers face 'harsh' detention: rights group
- Singapore Riot : Malaysia always in state of prepareness
- Undentified lorry driver flees after hit-and-run crash
- Ministry forms panel for PISA
- Thousands questioned in widening crackdown after Singapore riot
- RTD officer, suspect in heavy machinery theft, detained
- Netanyahu missing Mandela memorial for cost reasons: media More
TOKYO: Japan and China are expected to start direct trading of their currencies as early as June as part of efforts to boost bilateral trade and investment, reports said Saturday.
With the planned step, exchange rates between the yen and the yuan will be determined by their transactions, departing from the current “cross rate” system that involves the dollar in setting yen-yuan rates, Kyodo News said.
The two governments are eyeing setting up markets in Tokyo and Shanghai, the Yomiuri Shimbun said.
The yen-yuan exchange system would help businesses in the world’s second- and third-largest economies reduce risks associated with exchange rate fluctuations in the dollar and cut transaction costs, Kyodo said.
It will be the first time that China has allowed a major currency except the dollar to directly trade with the yuan, Kyodo said. -- AFP