Yuan service to start before CNY break: central bank
By Ted Chen ,ReutersTAIPEI, Taiwan -- The yuan currency clearing service will be made available prior to the Chinese New Year's holidays, the Central Bank of the Republic of China (Taiwan) stated yesterday.
January 26, 2013, 12:02 am TWN
The Yuan Clearing Pact (關於人民幣業務的清算協議) is scheduled to be signed by the central bank and the Taipei Branch of Bank of China (中國人民銀行台北分行) on Jan. 30, followed by a press conference with domestic banking units to explain the specifics of the yuan clearing service.
Yuan-denominated transactions for individuals are limited at 80,000 yuan for fund transfers and 20,000 yuan for currency trading. Transactions may take place between accounts held by different people.
The availability of onshore Yuan clearing services will greatly promote commerce between the straits, and benefit businesses, industries and tourism, in addition to creating new financial and investment vehicles, said central bank Deputy Governor Yang Chin-long (楊金龍).
“The allowable transaction limits are slightly inadequate,” stated Lawrence Pen-Tsao Chang (張平沼), governor-general of the General Chamber of Commerce (中華民國全國商會總部).
Chang agreed that initially limits should be set conservatively, but urged the Central Bank to increase the limits at the conclusion of the policy's pilot phase.