A yuan clearing system, jointly developed between the Bank of China and the Australian Securities Exchange, has made the yuan, the first foreign currency in Australia's local clearing system.

The launch is a crucial step forward for the currency, creating easier bilateral trade and investment cooperation between the countries and promoting the development of an offshore yuan market in Australia, said the bank.

The bank's Sydney branch is the first Chinese financial institution in Australia and the only one with a full banking license in the country.