New Zealand, China in Talks on Convertibility of Currencies

The world is leaving the US Dollar, one country at a time, and America is too busy following the Kardashians to notice.

WELLINGTON, New Zealand—Seeking to help its exporters, New Zealand is negotiating with China to make their currencies directly convertible, a spokeswoman for Prime Minister John Key said.

Talks are in the “very early stages” and “progressing,” the spokeswoman said, adding that the issue had been brought up during Mr. Key’s visit to China last month.

Direct convertibility between the Chinese yuan and New Zealand dollar would end the need for New Zealand’s companies and currency traders to convert New Zealand dollars or yuan into U.S. dollars when making or receiving payments.

China and Australia reached a deal to allow direct convertibility between the yuan and Australian dollar last month; before that, only the U.S. dollar and Japanese yen were directly exchangeable with the yuan. As China has become more industrialized, it has become Australia’s biggest trading partner and buyer of its commodities, including raw materials such as copper and iron ore.

For New Zealand, “There is no time frame for concluding an agreement,” Mr. Key’s spokeswoman said. “We are aware it took Australia around 12 months to achieve its recent agreement with China.”

Full article: New Zealand, China in Talks on Convertibility of Currencies (Wall Street Journal)

Comments are closed.