Offshore Chinese yuan deposits reach 18.5 billion

By Amy Su  /  Staff reporter

Sat, Apr 13, 2013 - Page 13

The central bank said yesterday that 18.5 billion Chinese yuan (US$2.99 billion) was deposited onshore in Taiwan as of the end of last month, up 92.15 percent from the 9.63 billion yuan recorded at the end of February.

The amount of yuan remitted by Taiwanese last month totaled 6.94 billion yuan, a 212.12 percent expansion from the 2.22 billion yuan posted in February, the bank said in a statement.

Local banks were allowed to offer yuan-based business beginning on Feb. 6, after Taiwan and China inked a memorandum of understanding (MOU) on a currency clearing agreement on Aug. 31 last year.

“The fast increase in both yuan deposits and remittance was mainly due to a lower comparison basis during the early stage of the yuan business in Taiwan,” the bank said, adding that it expected the growth to slow in the near future.

The bank said the total amount of yuan in Taiwan might continue to expand, as more local companies pay out and transfer by yuan.

Domestic banks settled a total of 34.2 billion yuan over the past two months from the Bank of China’s (中國銀行) branch in Taipei — the yuan’s clearing bank in this nation.

The central bank on Thursday held a meeting to discuss yuan transactions attended by about 300 representatives from 68 domestic banks. They discussed ways to improve the efficiency of yuan transfers, as well as preparing for the launch of other detailed yuan business.