ANZ Granted Market Maker Status For Renminbi Forex

By ExpatBriefing.com Editorial 28 March, 2014

The Australia and New Zealand Banking Group (ANZ) announced on March 19, 2014, that the People's Bank of China has approved its license to act as a market maker for direct trading between New Zealand dollars (NZD) and Chinese renminbi (CNY) on the China Foreign Exchange Trading System. The approval follows an agreement between the New Zealand and Chinese Governments to allow banks to directly trade the two currencies.

Market maker status allows for direct NZD/CNY trading between banks, thereby cutting transactional costs. "Direct NZD-CNY trading has economic, trade, and investment significance for both countries because it will improve trade flows and reduce costs for companies doing business between New Zealand and China," ANZ China CEO Charles Li said.

New Zealand and China entered into a Free Trade Agreement (FTA) on October 1, 2008, making New Zealand the first developed country to conclude an FTA with China. Since then, the agreement has helped to remove barriers to trade and deliver significant gains for both parties.

ANZ New Zealand's Managing Director Institutional, David Green, said: "China is now New Zealand's largest trading partner and a key market for many of our major industries such as dairy products, meat, seafood, wool and education. It's also a major source of migrants, students and tourists, so Chinese culture makes up an important part of the fabric of our community and enhances business connectivity with Asia."

ANZ has had a continuous presence in China since 1986. ANZ China has branches in Beijing, Shanghai, Guangzhou, Chongqing, and Hangzhou.

ANZ has recently received preparatory approval for a Chengdu Branch, where it already has an Operations Hub, and to establish a sub-branch in the Shanghai Pilot Free Trade Zone.

Tags: Asia Pacific | Investment | Business | Banking | Forex | Australia | China | Food | Education | New Zealand | Trade | Expats | Banking |

 





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