Money

Taiwan banks offered easier way to source RMB banknotes

(Xinhua)
Updated: 2010-10-27 17:36

BEIJING - The Chinese mainland has authorized its main renminbi clearing bank in Hong Kong, the Bank of China Hong Kong Branch, to offer banknotes to Taiwan's commercial banks in Hong Kong, after Taiwan was reportedly short of renminbi banknotes.

Yang Yi, the mainland's Taiwan affairs spokesman, made the remarks on Wednesday at a news briefing when asked to comment that renminbi banknotes with a face value of more than 40 million yuan ($6 million) had been transferred to Taiwan.

Yang said the move was a "big step forward" in cross-Straits financial cooperation and said it would have a positive effect on the promotion of financial cooperation and economic development across the Straits.

Demand for renminbi banknotes has increased over the past year after?the mainland and Taiwan?launched direct flights in December 2008.

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Previously, buying renminbi banknotes was no trouble for tourists from Taiwan?to the mainland as their flights had to stop in either Hong Kong or Macao where they could easily?exchange the notes.

Exchanging?renminbi banknotes in Taiwan has been complicated in the past because of the lack of banking and financial relations across the Straits.

Taiwan banks could only source a limited amount of renminbi banknotes from HSBC or Bank of America in Hong Kong, which was more expensive than buying the notes directly from the Bank of China.