Central bank Governor Perng Fai-nan (彭淮南) yesterday said the currency clearing agreement between Taiwan and China may take effect before the Lunar New Year, which falls in February next year.
Meanwhile, the Financial Supervisory Commission is to send an official letter to local banks today or tomorrow that would allow them to do onshore business in yuan, a commission official said by telephone yesterday.
Perng made the remark after the People’s Bank of China on Tuesday appointed the Taipei branch of Bank of China Ltd (中國銀行) as its clearing bank for yuan trading in Taiwan, a critical step in pushing forward the memorandum of understanding for cross-strait currency settlement signed on Aug. 31.
Earlier in September, the Chinese central bank appointed the Bank of Taiwan’s (台灣銀行) branch in Shanghai as the New Taiwan dollar clearing bank in China.
At a meeting of the Finance Committee at the legislature yesterday, Perng said he met officials from the Taipei branch of Bank of China late on Tuesday. He said he hoped the Chinese bank would accelerate follow-up procedures for the yuan settlement.
“The next step now is for clearing banks on both sides to sign a currency settlement agreement,” Perng said in a question-and-answer session at the committee.
It may take about a month for such an agreement to take effect, Perng said, adding that he expects domestic banking units in Taiwan to officially launch onshore yuan trading by the Lunar New Year.
However, both sides still need further discussion to determine the quota of yuan Taiwanese banks can process on a daily basis, Perng said, in response to Chinese Nationalist Party (KMT) Legislator Alex Fai’s (費鴻泰) request that the Taiwanese central bank should strive to attain at least the same quota of yuan trading as Hong Kong.
“From our perspective, the higher the quota, the better,” Perng said.
Currently, the maximum daily quota for yuan deposits in Hong Kong is 20,000 yuan (US$3,180), with remittances on a daily basis restricted no more than 80,000 yuan.
Perng said the central bank would watch future interest rates of yuan deposits in Taiwan to make sure the rates are not significantly different than rates for the NT dollar deposits to maintain a “normal status” in the local banking sector.
Meanwhile, the central bank maintained a relatively optimistic outlook on the global economy, Perng said, adding that many international and domestic economic institutes have forecast more than 3 percent GDP growth for Taiwan next year.
As for the recent net inflows from foreign investors, Perng said he had seen some sovereign wealth funds enter Taiwan and invest in the securities market.
Net inflows of foreign investment have reached US$1.4 billion since Dec. 1, compared with last month’s US$1.26 billion in net inflows, Perng added.
EFFICIENCY: The rules for Philippine arrivals were revised after 17.6% of arrivals with symptoms tested positive, compared with 0.7% of those with no symptoms Starting today, Chinese spouses who hold a reunion permit can apply to enter Taiwan and travelers without symptoms from the Philippines do not need to be tested for COVID-19 upon arrival, but are to be tested after a 14-day quarantine, the Central Epidemic Command Center (CECC) said yesterday. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that from today, Chinese who are married to a Taiwanese citizen and hold a reunion permit can apply to the National Immigration Agency for entry into Taiwan. Chinese who are married to a foreign national and hold an accompanied reunion permit
CONSOLIDATION? Taiwan Thinktank deputy executive-general Doong Sy-chi said Beijing’s intimidation tactics are further alienating those who identify as Chinese Only 2 percent of respondents to a poll on constitutional amendments and national identity identified as Chinese, while 62.6 percent identified as Taiwanese, the Taiwan Thinktank said yesterday. Legislators have proposed amendments to the Additional Articles of the Constitution (憲法增修條文), which would change the definition of the nation’s territory, remove the Taiwan Provincial Government as an entity, prioritize the use of “Taiwan” for national groups at international events, and remove restrictions on defining the national emblem, national flag and national anthem. The poll showed that 80.5 percent of respondents agreed that the nation should participate as “Taiwan” at events organized by world
MISTAKE: The Global Covenant of Mayors for Climate and Energy is not a UN body, and the government is committed to protecting the nation’s name, Joseph Wu said The Ministry of Foreign Affairs yesterday condemned the Global Covenant of Mayors for Climate and Energy for listing Taiwanese cities as belonging to China on its Web site, and asked that it correct the error. The organization was inaugurated in Brussels in 2016 as a global coalition of mayors committed to reducing greenhouse gas emissions. Six Taiwanese cities at the time joined the coalition as cities in “Taiwan,” the ministry said. However, officials from the Kaohsiung City Government — one of the organization’s members — last week noticed that the city was now listed on the organization’s Web site as a
BALANCED DEVELOPMENT: TSMC chairman Mark Liu said the firm is committed to local investment: a third in the north, a third in the center, a third in the south Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday said that, based on its strategy of balancing capacity, it plans to make northern Taiwan its manufacturing hub for advanced technologies that go beyond 2 nanometers. “As the company is committed to investing in Taiwan, we try to deploy one-third [of our total production capacity] in the north and have one-third each in the center and south” of the nation, TSMC chairman Mark Liu (劉德音) told reporters on the sidelines of Semicon Taiwan’s Master Forum in Taipei. TSMC last year reached its goal of deploying capacity equally across those parts