BEIJING, Feb. 10 -- Direct trading between China's RMB and foreign currencies reached 1.05 trillion yuan (170 billion U.S. dollars) in 2014, a report from China's central bank showed.

Daily average direct transactions reached 10.2 billion yuan last year, 8.4 times more than in 2013, according to the monetary policy report for the fourth quarter released on Tuesday by the People's Bank of China.

The RMB now trades directly with eight foreign currencies, including the Euro, Australian dollar and Singapore dollar.

Growth of RMB direct trading has many advantages, including reduced exchange costs, improved price transparency and promotion of the internationalization of the RMB.