The Bank of China and the Philippines' Central Bank have forged an agreement that would allow the direct exchange of the Chinese Renminbi and Philippine peso. China is already the Philippines' top trading partner but the new trading platform is expected to further boost business between the two countries. CGTN's Barnaby Lo explains.

Gigi Lee has been selling car accessories in Metro Manila's Banawe district for over twenty years, and for as long as she can remember, it's made most business sense to source her items from China, even though she has to make purchases in US dollars.

GIGI LEE CAR ACCESSORIES IMPORTER "We do not have any choice but to pay in US dollars because banks accept only US dollars for telegraphic transfers."

And because her suppliers get paid in US dollars, that's also the currency she gets billed in.

GIGI LEE CAR ACCESSORIES IMPORTER "It's a disadvantage because there's roughly a 1-2 percent margin for the exchange rate that will be charged  to us, that will be added on to the products that we have ordered from them."

Soon, however, Gigi and other Filipino businesspeople who import from China may not have to incur those losses. The renminbi will no longer be pegged to the US dollar rate after the Bank of China and the Philippines' Central Bank signed an agreement that allows for a direct exchange between the Chinese currency and the peso. It's something that has been in the works for years, but is only seeing fruition now.

CARLOS DOMINGUEZ III PHILIPPINES FINANCE SECRETARY "A lot of doors open when you have set aside issues that divide two countries. And basically, President Duterte's policy is not to let a single issue drive the entire relationship between the Philippines and China."

BARNABY LO MANILA "China is already one of the Philippines' largest trading partners, if not the largest, but better exchange rates could encourage more investments, and there's still plenty of room for business both ways. Barnaby Lo, CGTN, Manila."