Japan and China are expected to start directly trading their currencies in June as part of efforts to boost bilateral trade and investment, financial sources in Beijing said Saturday.
With the new step, exchange rates between the yen and the yuan will be determined solely by transactions of the two currencies, eliminated the role played by the dollar in setting yen-yuan rates under the current system.
It will be the first time that China has allowed any major currency except the dollar to be traded directly with the yuan, also known as the renminbi, the sources said.