, Taiwan

Cross Strait settlements to improve

Selection of Renminbi settlement bank proceeding cautiously.

China is close to choosing a bank for Renminbi settlements in Taiwan. Officials in both nations expect that improved monetary cooperation will become an important part of financial cooperation across the Taiwan Strait.

Wang Huaqing, Commissioner of Discipline Inspection of the People’s Bank of China and vice chairman of the China Society for Finance and Banking, said selecting a Renminbi clearing bank in Taiwan is still in progress in accordance with relevant procedures and requirements.

He also said building a cross-Strait currency settlement mechanism will take time and take banks' willingness into consideration.

"The cross-border flows of Renminbi and NTDs will benefit enterprises and banking sectors from both sides of the Taiwan Strait, as it lowers the cost of currency exchange and the risk of exchange rate fluctuation for businesses on both sides," Wang said.

A memorandum on cross-Strait currency settlement signed in August allows the two sides to establish a currency clearing system by each designating a bank to carry out currency settlements and liquidations for the other side.

Taiwan has already chosen the Shanghai branch of Bank of Taiwan as the clearing bank for New Taiwan Dollars (NTDs) in the Chinese mainland.
 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!