Japan and China started direct trading of their currencies, the yen and the yuan, on the interbank foreign exchange markets in Tokyo and Shanghai on June 1 in an apparent bid to strengthen bilateral trade and investment between the world's third- and second-largest economies.

Direct yen-yuan trades also aim to hedge the risk of the dollar's fall in the long run as the world's key settlement currency and as the main reserve currency in Asia, the world's economic growth center in the 21st century. By skipping the dollar in transactions, the region's two biggest economies indicate their intention to reduce their dependence on dollar risk and US monetary authorities’ leeway and prowess on the Asian economy. The move aids China's goal of undercutting US influence in the region while strengthening China-Japan financial ties.