Japan, China take steps to decrease dollar dependence
Japan announced that it will join with China to promote direct trading of the yen and yuan without using dollars, according to a Bloomberg Businessweek report.
China is Japan’s biggest trading partner with $340 billion in two-way transactions last year. China and Japan are the world’s second- and third-largest economies respectively.
On a related issue, in its semi-annual report, the Treasury Department resisted tagging China as a currency manipulator despite calls from members of both parties in Congress.
The report did note that, when compared to the dollar, the yuan had appreciated nearly 12 percent since last June and that it is in “China’s interest to allow the exchange rate to continue to appreciate, both against the dollar and against the currencies of its other major trading partners.”