China to start direct trading between RMB, Swiss Franc

The US and Swiss flags on a currency exchange rate board in London. Major property owners in Switzerland are finding it harder to lease after the nation's central bank scrapped its currency cap of 1.20 franc per euro. [Photo/Agencies]

BEIJING - China announced Monday that it will allow direct trading between the Chinese yuan and Swiss Franc in the inter-bank foreign exchange market starting from Tuesday.

The move will lower trading costs for China and Switzerland, facilitate use of the two currencies in bilateral trade and investment and boost economic and financial cooperation between the two countries, according to the announcement released by China Foreign Exchange Trade System (CFETS).

The central parity rate between renminbi and Swiss Franc will be decided according to the average quotation of direct trading market makers before the market opens each working day, according to CFETS.

Swiss Franc is the 12th foreign currency that can be directly traded with the Chinese yuan in the inter-bank foreign exchange market.