WESTPAC and ANZ banks will be the first to directly trade Australian dollars into Chinese yuan under a landmark currency deal that will begin on Wednesday.
The news will make it easier for businesses to trade without having to convert to US Dollars first.
Under the deal, the Australian dollar will for the first time be directly convertible into Chinese yuan, without going through the US dollar as happens now.
Australia will have the third currency in the world that can be directly traded, after the US dollar and the Japanese yen.
Loosely translated into English, the renminbi means 'people's money'.
It is the official currency of China and its base unit is the yuan.
At present, one Australian dollar buys around 6.4 yuan.
Westpac has been operating in China for about 40 years and has full branches in Shanghai and Beijing.
ANZ is Australia's largest bank in China.