- RBA dep gov on reuters addressing the Australian Chamber of Commerce
- will invest around 5% of currency reserves in Chinese bonds
- PBOC has approved of of the move
- Lowe says stronger financial linkage will benefit both countries
- says yuan, when liberalized, likely to be one of the major currency reserves in the region
- many Australian companies keen to invoice in yuan directly
- the AUDCNY currency swap deal ( AUD30 bln ) will help
RBA reserves are around AUD 38.2 bln so a quick bit of maths at this early hour tells us the move will be a spend of around AUD1.9n bln. Not a major amount but markets will be keeping an eye on how this RBA investment flow devleops.
