RMB savings from DBUs and OBUs in Taiwan hit record high
By Kathryn Chiu, The China PostTAIPEI, Taiwan -- Total RMB savings in Taiwan from offshore banking units and designated banking units passed 80 billion yuan to a fresh high of 85.141 billion yuan at the end of August, according to the Central Bank.
September 15, 2013, 12:08 am TWN
The Central Bank yesterday released a review of RMB business in Taiwan, showing that 61 Designated Banking Units (DBU) have accumulated 54.451 billion yuan in deposits while 55 Offshore Banking Units (OBU) accumulated a total of 30.69 billion yuan in deposits, bringing total RMB savings in Taiwan to over the 80-billion-yuan mark for the first time.
RMB savings in Taiwan posted a record high of 85.141 billion yuan by the end of August. This figure represents a 10.78-percent surge from the end of July and a 19.58-percent jump from the end of June.
Currently, both OBUs and DBUs of Taiwan-based banks are permitted to undertake RMB business or offer RMB cash exchange services after the Bank of China's Taipei Branch was designated by mainland China authorities as the clearing bank in Taiwan and launched services in early 2013.
The total RMB discount & remittance balance in Taiwan reached 8.18 billion RMB by Aug. 31, with DBUs contributing 22 million RMB and OBUs 8.158 billion RMB.
The total RMB transfer amount in Taiwan reached 39.638 billion by Aug. 31, with DBU contributing 15.619 billion RMB and OBU 24.019 billion RMB.
Total RMB savings in Taiwan are expected to more than double to 150 billion by the end of 2013, Standard Chartered economist Tony Phoo (符銘財) told the United Evening News. He also said that volume could hit 1 trillion yuan in five years.
There is a high likelihood that Taiwan may overtake Hong Kong as the largest yuan market outside China, if Taiwan's regulatory agencies ease rules and restrictions to retain yuan liquidity, Phoo added.