The dollar’s death by a thousand cuts just sustained a major blow as Kyodo News announced Saturday that Yen-Yuan direct trading will begin in June.
Japan and China are expected to start direct trading of their currencies as early as in June as part of efforts to boost bilateral trade and investment.
With the new step, exchange rates between the yen and the yuan will be determined by their transactions, departing from the current ”cross rate” system that involves the U.S. dollar in setting yen-yuan rates.