The Bank of China (Hong Kong) (BoC, 601988.SH, 3988.HK), the Hong Kong unit of the state-controlled BoC, was authorized on Tuesday by the People’s Bank of China (PBoC) to serve as an authority by which cross-strait business transactions could be conducted in renminbi, state media reported, citing the Hong Kong Monetary Authority (HKMA). The BoC Hong Kong office will provide limited renminbi exchange services to commercial Taiwanese banks, which will in turn provide local affiliates and customers access to the mainland currency. "This arrangement will further facilitate cross-strait personnel exchanges, and also lays the foundation for the gradual establishment of a cross-strait currency settlement mechanism and strengthening of monetary cooperation," the PBoC said of the announcement. The new currency service follows the recent signing of an Economic Cooperation Framework Agreement between Taiwan and the mainland.
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