China started direct trading of the yen and the yuan Friday in Tokyo and Shanghai, another step in its efforts to expand the global use of its currency and reduce reliance on the dollar.
Mitsubishi UFJ Financial Group Inc. quoted Friday's first direct yuan-yen trading level at ¥12.335 per yuan around 9 a.m. The rate is based on market makers' prices and computed without a cross rate for the dollar. The yen was trading at ¥12.326 against the yuan at about 11:50 a.m. Friday in Tokyo, compared with ¥12.379 the day before, according to data compiled by Bloomberg.
HSBC Holdings' China unit and Bank of China Ltd. earlier this week said they have won approval to act as market makers in direct trading between the yuan and the yen, while Mizuho Bank Ltd. and Mizuho Corp. Bank Ltd. will handle trading in Tokyo.