Direct trading of the Chinese currency against the Japanese yen kicked off on June 1, both in Shanghai and Tokyo, bringing the yuan one step closer to becoming a truly global currency.

The trading marks the first time for China to allow a major currency other than the U.S. dollar to be traded directly against the yuan.

As part of efforts by China and Japan to strengthen cooperation in developing the financial market, the move serves as an important means of promoting direct yuan-yen trading, the People's Bank of China said in a statement on its website.

The central parity rate of the yuan against the yen will be based on the average price of offers made by registered dealers before the opening of the market each business day.