Australia central bank to invest in Chinese bonds

Font Size:
Default font size
Larger font size

Posted: Wednesday, April 24, 2013 12:00 am

SYDNEY (AP) - Australia's central bank said Wednesday it will invest up to 5 percent of its foreign currency reserves in Chinese government bonds as economic and business ties between the two countries deepen.

The Reserve Bank of Australia said it will be the first time it has directly invested in the sovereign bond market of an Asian country other than Japan.

Deputy Governor Philip Lowe said in a speech in Shanghai and posted on the bank's website that it expects China's yuan to eventually become one of the major reserve currencies in the region.

He said the plan to invest in Chinese government bonds reflects Australia's broader economic relationship with China, which is the world's second-largest economy, and increased financial ties.

China's is Australia's largest export market, driving a boom in the South Pacific nation's mining industry.

Australia and China earlier this month agreed on direct trading of the Australian dollar and the yuan.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



Inside Business
To submit an announcement for "Inside Business", click here. For questions call (402) 444-1371 or e-mail

World-Herald Alerts

Want to get World-Herald stories sent directly to your home or work computer? Sign up for's News Alerts and you will receive e-mails with the day's top stories.