New Zealand, China in Talks on Convertibility of CurrenciesSubmitted by Bob-45 on Sun, 05/26/2013 - 21:21
By REBECCA HOWARD And JAMES GLYNN
WELLINGTON, New Zealand—Seeking to help its exporters, New Zealand is negotiating with China to make their currencies directly convertible, a spokeswoman for Prime Minister John Key said.
Most of New Zealand's exports to China are agricultural products—particularly milk powder, meat and wool—while most of its imports from there are computers, mobile phones and clothes. Above, sheep shearering near Dunedin, New Zealand in September.
Wellington's push is aimed at driving down costs for companies that do business with China, which is close to overtaking Australia as New Zealand's No. 1 trading partner.
Talks are in the "very early stages" and "progressing," the spokeswoman said, adding that the issue had been brought up during Mr. Key's visit to China last month.