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"We're not abandoning the dollar or euro, but we're adding the Yuan to deepen our relationship"
- Jun Azumi, Japan's Finance Minister
Japan is in talks to purchase Chinese government bonds, said Finance Minister Jun Azumi on Tuesday, a step toward diversification of country's foreign exchange holdings.
"I think it's mutually beneficial" for the two nations to be investing in one another's debt, said Azumi at a press conference in Tokyo on Tuesday. "We're not abandoning the dollar or euro, but we're adding the Yuan to deepen our relationship."
"It's another step forward in the path of Yuan internationalization," said Liu Dongliang, a senior analyst in Shenzhen at China Merchants Bank Co., the nation's sixth-biggest bank.
"It shows Yuan-denominated assets are becoming more and more attractive. But the quota may be small because China will be cautious in allowing foreign governments to invest in Chinese government bonds."