Cross-Straits monetary settlement mechanism established

Business circles, especially in Taiwan, have looked forward to a clearing system for a long time. Experts in Taiwan said that the island should get a taste of the internationalization of renminbi so as to share in the benefits from the mainland's development.

"Renminbi business has great potential in Taiwan as the two sides are expanding their economic and trade relations," said Cai Rongjun, chief of Taipei Branch of the BOC.

New Taiwan Dollar business in the mainland attracted the attention of many Taiwan businessmen working in mainland and Taiwan-based financial institutions.

According to the agreement between Taiwan's monetary authority and the Shanghai Branch of Bank of Taiwan, a total of NT$2 billion banknotes will be provided to the mainland, while demand will be as high as 2.7 billion.

"The currency clearing system can reduce exchange losses, greatly benefiting cross-Straits economic and trade relations," said Yen Quei-tien, chief of the Shanghai branch of the Bank of Taiwan. "It also means a lot of opportunities for financial companies."

Taiwan's insurance, investment and trust companies are all interested in renminbi business, and are now designing renminbi products for Taiwan people.

"As people-to-people and economic and trade relations across the Straits are becoming increasingly close, the demand for quality and convenient exchange services will also increase," said Yen.