05/29/2012, 00.00
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Tokyo and Beijing to abandon dollar and trade in yen and yuan from June

The announcement came from the Central Bank of China and the Japanese Ministry of Finance. The benefits: lower transaction costs and lower risks for financial institutions. Beijing tries to break away from the increasingly inflated dollar; Tokyo tries to save its exports, which if traded in dollars, have very high prices.

Beijing (AsiaNews / Agencies) - China and Japan have announced that from June 1 they will allow a direct trade between the two countries using the yuan and yen, surpassing the use of the U.S. dollar as the main currency. The decision should promote even more trade between the second and the third world economy.

The Central Bank of China said that this type of exchange will reduce the costs associated with currency conversions and facilitate bilateral trade and investment between the two countries, former enemies.

The Japanese Minister of Finance, Jun Azumi, told reporters that the new trade regime will be launched on 1 June.

"Making transactions without the currency of a third country, may reduce transaction costs and lower financial risks."

The decision shows a greater confidence in China to liberalize its currency, but also a distrust of the dollar, increasingly subject to inflation. Tokyo also approves of the direct use of its currency without going through the U.S. dollar, the low value of which in international markets increases the prices of Japanese exports.


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