China-NZ agree currency deal
New Zealand and China have reached an agreement to allow the direct trade of currency, cutting the cost of doing business in China.
While China is developing into a global economic superpower, the government in Beijing retains strict control over the renminbi. The exchange rate is tied to the US dollar and until recently trading had to be conducted via the greenback.
However, the governments announced last year an investigation into direct trading and this evening in Beijing a deal was announced. The Kiwi dollar is the sixth currency to be granted this status.
China's Premier Li Keqiang announced that a currency deal would be signed in his comments at the start of his meeting with the New Zealand delegation at the Great Hall of the People in Beijing.
In a statement Key, a former currency trader, said that the move should make doing business in China easier by reducing the cost of currency conversion.
"Today's announcement will further reduce the costs of trade and investment transactions between New Zealand and China, increasing the ease of doing business for the benefit of businesspeople in both countries."