A few days ago, Stephen Harper which is the Prime Minister, announced an agreement with China to establish Canada as the first trading-hub in the North America, for the Chinese currency, the Yuan. That means, Canadian companies can directly deal with Chinese companies in their own currency, there is no need to change to US dollar, that makes the business easier and less expensive for merchants.

I think to set this trading-hub is a significant development and a major win for Canadians, Canada financial industry and Toronto, because China is one of the world’s largest economies and Canada’s second largest trading partner, this trading-hub gives Canada’s companies a comparative advantage. A Canadian Chamber of commence estimated that the benefit of the Yuan trading-hub can create more than $30 billion in direct trade benefits.  Canada’s international reputation as a global trading nation has been given a major boosting with this new agreement.

Sources:

http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707