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Su makes request for plan to exchange Chinese yuan

MAC chairman suggests project may start with limited amounts

Su makes request for plan to exchange Chinese yuan

The top Mainland Affairs Council official said yesterday that Premier Su Tseng-chang (蘇貞昌) has given instruction to the council to come up with a complete plan for the opening up of the exchange of the Chinese yuan for New Taiwan dollars.
MAC Chairman Joseph Wu (吳釗燮) made the statement when presenting a report on "the opening of Chinese currency exchange in Taiwan" to the opposition Taiwan Solidarity Union party.
Premier Su said yesterday morning that the Executive Yuan will make an overall assessment of the issue and that the Ministry of Economic Affairs will make a formal announcement at an appropriate time. "Everyone can keep their hopes high," Su added.
Central Bank of China Governor Perng Fai-nan (彭淮南) - Taiwan's top monetary official - Tuesday urged the government to lift the ban on the Chinese currency exchange business in Taiwan, saying "the time for currency exchange is ripe, and the practice would not negatively impact the country's economic growth." If the government gives the green light, the CBC is ready to implement the new policy within a week, Perng said.
However, Wu said the steps to begin exchanging require a full-scale assessment, and that a single council cannot determine or approve the practice.
He also said the services will require the signing of a currency clearance and liquidation agreement between Taiwan and China.
Wu described how the exchange might work in its early stages.
"Chinese tourists are now restricted to carrying 20,000 renminbi (yuan) with them when they visit Taiwan. Perhaps the council will follow a 'limited amount' policy during a trial stage," Wu said.
The CBC responded to Wu's statement by saying it "will respect any decision that the MAC makes."
Deputy Governor of the CBC Liang Fa-chin noted that the government began by allowing tourists carry a maximum of 6,000 RMB in an out of Taiwan in 2004. The amount was raised to 20,000 RMB in 2005. Liang said that illegal trading had become rampant among exchange operators.
The CBC has asked bank experts to given public lectures on how to distinguish counterfeit Chinese currency seven times in the last two years. Conversion services have opened in 11 outlets on the two outlying islands of Kinmen and Matsu in 2005.
Vice Chairperson of the Financial Supervisory Commission Susan Chang (張秀蓮) said the Chinese currency is banned from being sold, purchased or converted in Taiwan until Taiwan and China sign a currency clearance agreement, based on article 38 of the Act Governing Relations Between People of the Taiwan Area and Mainland China.
TSU legislators Lo Chih-ming (羅志明) and Lai Shin-yuan (賴幸媛) said the opening of the currency exchange will involve an evaluation by national security authorities and parties wary of opening exchanges in Taiwan.


Updated : 2021-04-17 08:17 GMT+08:00