Taipei is well-positioned to develop into an offshore yuan trading center, given its trade links with China, but it needs to boost its international image to attain the status, Standard Chartered Bank chief executive Peter Sands said in Taipei yesterday.
Sands made the comments while attending an economic summit in Taipei co-sponsored by the British bank and the Financial Times.
Taipei can benefit from the yuan’s internationalization as cross-border trade is increasingly settled in the Chinese currency — jumping to 12.6 percent last year, from 5 percent in 2010, Sands said.
Although it will take a while for the yuan to become a major reserve currency, its rising importance is evident, thanks to growing regional trade, he said.
Taiwan, which ships 40 percent of its exports to China, could save significant foreign currency exchange costs if exporters use yuan to settle trade, Sands said.
That gives Taipei an advantage in building an offshore yuan trading market, in addition to its strength in technology and innovation, he said.
In comparison, Hong Kong has a history as an international financial center, while Singapore is developing into a regional wealth and asset-management hub, Sands said.
However, Taipei needs to bolster its image as an international financial center, he said, adding that Taiwanese companies should invest on increasing their profile, marketing and branding.
Taiwan could also make more effort to strengthen its creative industries, as South Korea has succeeded remarkably in doing in recent years, Sands said.