Sorry, Mates, Strictly Business: OZschwitz Wants To Cut Out US Dollar In Trade With China

Australia is seeking to bypass trading in U.S. dollars with China in an effort to avoid the commercial uncertainties that come with the recent fluctuations in the greenback. For example, just a half a year ago, the dollar traded at about $1.20 to the euro; by February, it had weakened to $1.34 per euro and now it is going for $1.27.
Eliminating the dollar in trade will be the focus of Australian Prime Minister Julia Gillard’s trip to Beijing next week. Trade with China, Australia’s primary trading partner, totaled $120 billion in the last fiscal year. China buys nearly one-third of Australian exports.

Sorry, Mates, Strictly Business: OZschwitz Wants To Cut Out US Dollar In Trade With China 287330australiandollara

"The value of such a deal would be substantial for exporters to China, especially those that import a lot from China, like mining companies, as it would remove business constraints including exchange-rate risks and transaction costs," said Australia’s former ambassador to China, Geoff Raby, according to the Australian.

The Australian government has made no secret of its aims to shift away trade from the U.S. dollar, the world’s primary reserve currency used in international commerce.

A government report, titled “Australia in the Asian Century,” discusses Canberra’s efforts to establish direct trading between the Australian dollar and the Chinese renminbi, or RMB, also referred to as the yuan. It also pushes for increasing the prominence of the RMB as a global reserve currency.

http://www.ibtimes.com/sorry-mates-strictly-business-australia-wants-cut-out-us-dollar-trade-china-1161287

Sorry, Mates, Strictly Business: OZschwitz Wants To Cut Out US Dollar In Trade With China

Sorry, Mates, Strictly Business: OZschwitz Wants To Cut Out US Dollar In Trade With China

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