Foreign exchange regulators said yesterday that they are poised to deregulate currency exchange between the New Taiwan dollar and the yuan — as long as legal revisions are finalized by the legislature.
“We’re ready,” central bank Deputy Governor George Chou (周阿定) said, whose comments were echoed by Financial Supervisory Commission (FSC) Chairman Hu Sheng-cheng (胡勝正) and acting Minister of Finance Lee Ruey-tsang (李瑞倉) at the legislature’s Finance Committee.
Once Article 38 of the Statute Governing the Relations Between the People of the Taiwan Area and the Mainland Area (兩岸人民關係條例) is revised by the legislature and a currency clearing agreement is inked between Taiwan and China, the central bank, the FSC and the ministry said they will speed up their preparations for the free exchange of the NT dollar and the yuan.
The central bank proposed a two-phase process yesterday. The incoming government should adopt a one-way exchange first, allowing domestic banks to buy Chinese yuan since the supply of yuan remains a big question because the central bank has no yuan in reserves, Chou said.
Once China agrees to sign a currency-clearing pact to ensure the yuan’s convertability and supply, a currency exchange can be opened once domestic banks have been trained to identify fake yuan bills, he said.
Taiwanese made 4 million trips to China last year, which would put great pressure on domestic banks if they are immediately asked to sell yuan, Chou said.
A test run that allowed banks in Kinmen and Matsu to trade less than 20,000 yuan (US$2,850) per person showed that banks there sold 443.8 million yuan between October 2005 and last month — six times more than the 78.56 million yuan they bought during the same period, central bank statistics show.
Since the yuan is not a “fully convertible” currency like the US dollar, it could be risky to hold too much of the currency, Chou said.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old