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Chinese mainland, Taiwan keep currency settlement channels clear
Posted: March-13-2012Adjust font size:

Monetary authorities in the Chinese mainland and Taiwan have worked to ensure open and smooth currency settlement and clearance across the Taiwan Strait, vice governor of the People's Bank of China Hu Xiaolian said Monday.

"All of the three channels open to currency settlement and clearance between the Chinese mainland and Taiwan are operating smoothly and providing a wide range of services," Hu said at a press conference on the sidelines of China's ongoing annual legislative session.

There is "room for research and discussion" on whether authorities should explore more ways to facilitate settlement activities between the mainland and Taiwan, she said.

According to Hu, monetary authorities in the mainland and Taiwan have solved banknote exchange issues between the yuan and the Taiwan dollar under the framework of the Closer Economic Cooperation Arrangement.

Companies and individuals from both sides can choose clearing banks in Hong Kong or Macao to carry out currency settlement and liquidation, Hu said.

Also, lenders on the Chinese mainland and Taiwan can rely on correspondence banks located elsewhere to provide services for the settlement and clearance of trade and investment across the Taiwan Strait, the official said.

Residents from Taiwan can also open personal banking accounts in banks on the Chinese mainland to deal with the settlement of some types of service trade and the clearance of personal funds, she said.

Hu said the PBOC has noted that some mainland banks can provide cross-Strait settlement services through their branches in Taiwan, while Taiwanese lenders can render the same services through outlets on the mainland.

Source: XinhuaEditor: oulin
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