China News recently reported that, with the authorization of China’s central bank, China Foreign Exchange Trading Center announced the official beginning of the direct exchange between the Chinese currency RMB (symbol CNY) and the South Korean Won among Chinese banks. This is considered a major step forward for the RMB internationalization effort. As of now, China has a direct currency exchange arrangement with 12 countries. The other 11 are the United States, the European Union, Japan, Great Britain, Malaysia, Russia, Australia, New Zealand, Singapore, Switzerland, and South Africa. China and South Korea have a high volume of direct trade. This mutual agreement was designed to improve settlements for these transactions and was aimed at lowering costs.
Source: China News, June 24, 2016