Treasury welcomes NZ dollar-renminbi direct trading

Treasury Secretary Gabriel Makhlouf has welcomed Prime Minister John Key’s announcement on direct trading of the New Zealand dollar and the renminbi.

"The agreement on direct trading of the dollar and the renminbi follows considerable work by the New Zealand Treasury and the People’s Bank of China. It is great to have this work come to fruition," says Mr Makhlouf.

"The Treasury has been discussing and finalising the details of this agreement with Chinese officials, the Reserve Bank of New Zealand and New Zealand financial institutions since September last year.

"There are several economic benefits we see flowing from direct dollar–renminbi trading. Over time we expect increased integration of Chinese and New Zealand financial markets, reduced transaction costs, and improved efficiency of trade and cross-border capital flows.

"In recent years we’ve signed a highly successful free trade agreement between our two countries and a currency swap agreement between the People’s Bank of China and the Reserve Bank. This is another major milestone in expanding New Zealand and China’s economic relations," says Mr Makhlouf.