Renminbi deposits in Taiwanese banks reach US$2.08 billion

Taiwan’s 53 domestic banking units began trading only last February 6.

The Bank of Taiwan, the central bank, said Taiwan’s banks have been conducting renminbi-denominated business including deposits, loans and remittances that were allowed after the establishment of a currency clearing mechanism across the Taiwan Strait.

The central bank reported that from Feb. 6 to March 11, renminbi remittances at overseas banking units totaled US$63 million from 4,181 transactions. On March 11 alone, the cross-border clearing amount for the renminbi came to US$72 million.

Before the implementation of the cross-strait clearing system, only offshore banking units of the local banking sector were allowed to engage in renminbi-denominated business.

Last August, Taiwan and China signed a memorandum of understanding to set up a currency clearing mechanism across the Taiwan Strait, a move that resulted in renminbi transactions at Taiwanese DBUs.