Chunghwa Post's direct yuan remittance cuts out greenback middleman
February 20, 2014, 12:20 am TWN
TAIPEI, Taiwan -- Chunghwa Post Co. (中華郵政), which owns a broad network of post offices in Taiwan, launched direct Chinese yuan-denominated remittance services Wednesday.
The direct yuan remittances, which are expected to save people in Taiwan foreign exchange costs, can be carried out at the 165 of Chunghwa Post's 1,323 offices that provide foreign exchange services, the company said.
In the past, people in Taiwan wanting to remit money to China through local post offices had to first convert Taiwan dollars into U.S. dollars, and the recipient in China had to convert the U.S. dollars received into Chinese yuan.
The new service will enable them to make remittances in the Chinese currency.
In 2013, post offices in Taiwan handled more than 14,000 remittances totaling NT$1.3 billion (US$42.90 million) to China and about 2,000 remittances worth NT$400 million from China, most of them made in U.S. dollars, Chunghwa Post said.
In late August 2012, Taiwan and China signed an agreement to set up a currency clearing mechanism.
Since Feb. 6, 2013, banks operating in Taiwan have been allowed to offer yuan-denominated services, including deposits, loans and remittances.