TAIPEI, Taiwan — Chinese yuan-denominated deposits at domestic banking units (DBUs) of the local banking sector totaled 12.92 billion yuan (US$2.08 billion) as of March 11, the central bank said yesterday.
Since Feb. 6, DBUs of banks operating in Taiwan have been conducting yuan-denominated business, such as deposits, loans and remittances, which was allowed after the establishment of a currency clearing mechanism across the Taiwan Strait.
Currently, a total of 53 banks in Taiwan are permitted to conduct yuan-denominated transactions, the central bank said.
In the period Feb. 6-March 11, yuan remittances at the OBUs totaled 1.87 billion from 4,181 transactions, the central bank said. On March 11 alone, the cross-border clearing amount for the yuan was NT$2.14 billion, the central bank said.
Before the implementation of the cross-strait clearing system, only offshore banking units of the local banking sector were allowed to engage in yuan-denominated business.
The local banking sector said the long-awaited yuan business is expected to strengthen its bottom line.
Last August, Taiwan and China signed a memorandum of understanding to set up a currency clearing mechanism across the Taiwan Strait, amid improving business ties. The move paved the way for yuan transactions at local banks’ DBUs.
The Taipei branch of Bank of China serves as the clearing bank for yuan-denominated transactions in Taiwan, while the Shanghai branch of Bank of Taiwan is the clearing bank for Taiwan dollar-denominated business in China.
Central Bank Governor Perng Fai-nan is scheduled to report to a legislative financial sub-committee March 18 on the progress of the yuan-dominated business in Taiwan.