(Yicai Global) Oct. 31 -- Lenders in China and the Philippines have established a trading community to simplify currency conversion.
Thirteen Filipino lenders, including the Asia United Bank and Bank of Commerce, struck a deal with the Manila branch of the Bank of China today on setting up the Philippine RMB Trading Community, state-backed China Central Television News reported.
The community will open a peso-yuan trading facility in late November to carry out a direct conversion of these two currencies, which may boost trade, investment and tourism. The platform will remove the excess link of first converting pesos to US dollars and then to renminbi.
The People's Bank of China and the Bank of Japan also penned a currency swap arrangement to strengthen financial stability and spur business activities, the Beijing-based central bank said on its website on Oct. 26.
The Philippine RMB Trading Community will apply to establish a yuan clearing bank in the Southeast Asian country.
Editor: Emmi Laine