China-Taiwan Cross-Strait Currency Clearing Takes Effect !

by Machiavelli

Socio-Economics History Blog

  • Cross-Strait currency clearing takes effect! 
    BEIJING, Nov. 1 (Xinhuanet) — At a press conference held on Wednesday, the spokesman of China’s State Council’s Taiwan Affairs Office Yang Yi says the cross-strait currency settlement memorandum signed at the end of August has officially gone into effect.

    The scheme will allow direct currency transactions between the Mainland and Taiwan’s banking systems, thereby forging closer monetary ties. The Chinese mainland and Taiwan signed a deal late August that paves the way for Taiwan banks to take deposits and loans in renminbi.

    Under the deal, the two sides will each designate a bank to carry out currency settlements and liquidations for the other side.

    Yang Yi, spokesman of the State Council’s Taiwan Affairs Office, says that monetary authorities from both sides have geared up for the operation of the cross-strait currency settlement mechanism.

    Yang said, “Both…

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