PBoC names yuan clearing branch for Taiwan

The People’s Bank of China has granted Bank of China’s (3988.HKG, 601988.SH) Taipei branch the right to clear renminbi transactions in Taiwan, a move that will facilitate wider use of the currency in the island China continues to claim sovereignty to, Bloomberg reported. The authorization, following a yuan clearing pact China has signed with President Ma Ying-Jeou’s Administration in August, will allow Taiwanese companies and individuals to open renminbi accounts and raise funds in the Chinese currency in Taiwan to fund their investments and operations on the mainland. It will also allow interbank trading of the currency. As part of the pact, Taiwan appointed Bank of Taiwan’s Shanghai branch as the clearing bank for yuan transactions in September. Apart from Taiwan, China has also been expanding the use of yuan with other trade partners including Singapore, Japan and Thailand to promote the currency’s internationalization.