China and Japan promote trade transactions in local currencies

Financial cooperation between the two countries will help limit risks from exchange rate fluctuations and reduce costs in trade transactions.

China and Japan to cooperate closely for stability on the Korean Peninsula Premier Wen Jiabao said China is willing to cooperate with Japan in promoting the direct use of the two countries' currencies in bilateral trade transactions.

Japanese Prime Minister Noda and his Chinese counterpart Wen Jiabao at a meeting in Beijing (Photo: news.cn)

During a meeting with Japanese Prime Minister Yoshihiko Noda in Beijing, Prime Minister Wen Jiabao emphasized: "In the face of the impacts of the current global financial crisis and the risk of it continuing to spread and becoming increasingly complicated, China and Japan need to make efforts to resolve challenges and strengthen the strategic relationship between the two countries."

Mr. Wen also hopes to speed up the process of building a free trade zone between China, Japan and South Korea as well as promote currency and financial cooperation in East Asia.

The leaders of China and Japan agreed to strengthen cooperation in financial markets and encourage bilateral financial transactions, the People's Bank of China (PBOC) said.

Strengthening financial cooperation between the two countries will help limit risks from exchange rate fluctuations and reduce costs in trade transactions.

The People's Bank of China pledged to support the development of a direct trading market for the yuan and yen, and to allow Japanese companies to issue yuan bonds in Tokyo and the international market.

The bank also approved a pilot program to issue yuan bonds by the Japan Bank for International Cooperation in China./.

According to Xinhua News Agency