The Australian dollar is set to become only the third currency to trade directly with the Chinese yuan — a move that will help internationalize China’s currency and smooth transactions between the major trading partners.
The yuan, also called the renminbi, already trades directly with the U.S. dollar and the Japanese yen.
China is pushing to internationalize the yuan, and the currency is being used to conduct a growing number of transactions on international markets as Beijing loosens its grip.
Critics have long accused China of keeping its currency artificially low, making its exports cheaper and more competitive against foreign players.
But the currency has been allowed to appreciate recently, easing periodic tensions over the issue.
http://money.cnn.com/2013/04/08/investing/china-australia-currency/index.html
China is wisely trying to decouple from it’s dependency with the US and slowly let the yuan appreciate but it will take many years to do so.
The Yuan is still vastly undervalued and keeping it weak is Chinese current trade policy.
We in the US are at a tipping point where the US is losing control of it’s economic future and the dollar will be replaced in the future if we continue our irresponsibility, but it will take a good while.