BoCom latest bank to convert Aussie dollar
(13 May 2013 – China) China’s Bank of Communications (BoCom) is now going to allow conversion of the Australian dollar into renminbi (RMB), beginning in 2014.
BoCom is one of seven Chinese and two Australian banks licensed by the People’s Bank of China (PBOC), to act as market makers for direct trading of the currencies.
China's fifth-largest bank by assets hopes the agreement will encourage more business and cross-border investments between the two countries.
China is Australia's biggest trade partner, buying vast quantities of raw materials such as iron ore and coal to help fuel its steel mills and power plants. About a fourth of Australia's exports go to China.
BoCom hopes to triple its Australian assets to about A$3 billion by the end of 2014, singling out Australia as a priority in its global expansion.
It is increasing syndicated lending and trade finance for Chinese companies investing in the energy and agriculture sectors.
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