With the authorization of the People's Bank of China, the China Foreign Exchange Trade System (CFETS) has announced on 24th  June, 2016 to launch direct trading between RMB and Korean Won (KRW) on the inter-bank foreign exchange market. This is an important step in strengthening bilateral economic and trade connections between China and Korea. And China and Korea will make further efforts to mutually promote the direct trading between the two currencies based on market principle.

Development of direct trading between RMB and KRW will contribute to the formation of direct exchange rate between the two currencies. This will help to lower currency conversion cost for economic entities, facilitate the use of RMB and KRW in bilateral trade and investment, promote the financial cooperation and enhance economic and financial ties between the two countries. The People's Bank of China actively supports the above-mentioned measure adopted by the CFETS.