Thursday, April 25, 2013

RBA to buy Yuan demoninated Debt

Now if only the boffins at the RBA would buy some gold whilst it is on sale, but that would be too radical, much better to buy some pretty paper instead.


The Reserve Bank has underlined its confidence in the Chinese yuan's future role as a reserve currency for the Asian region, saying it will invest $1.6 billion in Chinese government debt.

As part of a push to deepen financial ties with Australia's biggest trading partner, the central bank will put 5 per cent of its $32.4 billion in net foreign exchange reserves into Chinese sovereign bonds, it said on Wednesday.

After China this month allowed direct trade between the Australian dollar and the yuan, or renminbi (RMB), the move is another attempt to spur on the gradual opening up of China's financial system.

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