WSJ:Taiwan Picks Bank of Taiwan as Yuan/New Taiwan Dollar Clearing Bank in China
By Fanny Liu
TAIPEI--Taiwan's central bank picked government-controlled Bank of Taiwan's Shanghai branch to offer New Taiwan dollar clearing services in China, the central bank said in a statement Monday.
The central bank said it hopes seven other banks, which took part in its selection process last week, would participate in New Taiwan dollar settlement services in China.
A central bank official, who declined to be named, told Dow Jones Newswires that Taiwanese banks that have branches in China could become participating banks for New Taiwan dollar clearing services after signing a settlement agreement with Bank of Taiwan.
The central bank also said it hopes its selection of a New Taiwan dollar clearing bank in China less than a month after both sides signed a framework agreement would help speed up the operation of the direct yuan clearing mechanism.
On Aug. 31, the central banks of Taiwan and China said in separate statements they signed a framework agreement to create a direct yuan clearing mechanism that will become effective within 60 days, but didn't select any clearing banks or provide details on when and how the clearing mechanism will be introduced.
