New Zealand is in early talks to make its currency directly convertible to the yuan, The Wall Street Journal reported. A spokesperson for the office of New Zealand president John Key said the issue was brought up in Key’s recent trip to China and talks are continuing. Should the New Zealand dollar and Chinese yuan become directly convertible, companies and currency converters would no longer have to use US dollars as an intermediary during the payment process. The required conversion to US dollars adds costs for New Zealand firms doing cross-border business with China. China is close to overtaking Australia as New Zealand’s biggest trading partner.
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