Australia's stock exchange operator ASX and Bank of China said on Tuesday that they will provide a yuan settlement service to Australian and Chinese financial markets by mid-year, marking the latest step in the yuan's development as a global currency.
China is Australia's biggest trading partner and Australian firms have increasingly been settling their Chinese trade in yuan rather than U.S. dollars, according to local media reports.
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The new yuan settlement service will allow Australian firms to make trade and investments with China through the ASX, which has a "proven market infrastructure," the ASX said in a statement.
"What today is about is a milestone in the journey Australia and China are taking together," Australia's Assistant Treasurer Arthur Sinodinos told CNBC's Asia Squawk Box.