Bank of China (中國銀行), the first Chinese lender to set up a branch in Taiwan, aims to forge closer ties with Taiwanese firms with operations in China, including offers of yuan settlement services once Taipei and Beijing work out a mechanism, the lender’s president Li Lihui (李禮輝) said yesterday.
Li, who hosted the official opening of the branch in Taipei, said he met with officials at the central bank and the Financial Supervisory Commission for talks on business development plans.
“As a commercial bank, we hope the two sides can promptly set up a currency settlement mechanism,” Li told a media briefing.
WARNING: EXCESSIVE CONSUMPTION OF ALCOHOL CAN DAMAGE YOUR HEALTH
Photo: Liao Chen-hui, Taipei Times
Bank of China is the world’s top provider of yuan settlement services, which amounted to 803 billion yuan (US$126 billion) for the first five months of the year, Li said.
“We are the main [yuan] settlement bank in Hong Kong, Macau and Malaysia and we hope to extend the services to Taipei once regulatory barriers are removed,” he said.
With cross-strait trade valued at US$160 billion last year and Taiwan’s trade surplus totaling US$89.8 billion, yuan settlement would save Taiwanese firms with cross-strait operations significant foreign-exchange costs and allow them to better control foreign-exchange risks, Li said.
Currently, only designated banking units can conduct yuan exchanges, but they cannot take yuan deposits or provide yuan loans. Further, domestic lenders may provide yuan-related business for corporate clients through their offshore banking units.
The designated banking units have to go through either Bank of Taiwan (台灣銀行) or Mega International Commercial Bank (兆豐銀行) for currency settlements with Bank of China in Hong Kong.
Li said Bank of China plans to provide over 200 billion yuan to help Taiwanese firms expand in China in the next three years.
Potential borrowers are Taiwanese firms that can advance China’s development plans and meet lending criteria, he said.
Li said the Taipei branch would keep close contact with the headquarters of Taiwanese firms with operations in China so the lender can better mobilize its global resources to strengthen services.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01