Financial authorities yesterday dismissed a report by the Chinese-language press that the government would gradually relax controls on Chinese currency exchange transactions.
"The report does not conform to the truth," Jong Huey-jen (
The relaxation of regulations governing transactions in Chinese yuan involves cross-strait relations and foreign exchange policy, which require thorough inter-ministerial consultation before a final policy change can be made, Jong said.
Jong said some agencies had brought up their opinions over the issue in such meetings, "but it is not decided yet, as the report said," she said, declining to elaborate further.
A Chinese-language news organization reported yesterday that in response to growing cross-strait contacts, the government has drawn up a three-phase plan to relax the ban on yuan transactions.
The government would allow transactions in Chinese currency on Taiwan's Kinmen and Matsu islands near China's southeast coast in the first stage, the paper quoted an unnamed Democratic Progressive Party (DPP) official as saying.
In the second stage, Taiwanese and Chinese would be allowed to bring yuan into Taiwan; in the third stage, probably at the year's end, the government would amend the regulations to allow yuan transactions throughout the nation, the official said.
Although transactions in Chinese currency are banned, indirect trade between Taiwan and China in the five months ending in May rose 37.9 percent from a year earlier, official data compiled by the Board of Foreign Trade indicated late last month.
The value of trade reached US$23.84 billion during that period, accounting for 17.7 percent of the nation's total external trade, up from 16.6 percent a year earlier, the bureau said.
Nevertheless, various parties -- especially Taiwan businessmen -- are urging the government to allow banks to offer Chinese currency services in a bid to facilitate thriving indirect trade between Taiwan and China.
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