Economy

Mainland pushes currency clearing mechanism with Taiwan

(Xinhua)
Updated: 2011-03-30 14:14

BEIJING - The Chinese mainland is actively considering an "appropriate way" to set up a cross-Straits currency clearing mechanism and expects early progress in this regard, a government spokeswoman said Wednesday.

Expanding cross-Straits economic exchanges and increasing mutual visits require the two sides across the Taiwan Straits to establish a mechanism for currency clearing without delay, Fan Liqing, spokeswoman for the Taiwan Affairs Office of the State Council, told a press conference in Beijing.

She said the mainland already allowed mutual conversion of New Taiwan Dollar and yuan cross-border trade settlement to be conducted on a larger scale in the mainland.

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"No policies of the Chinese mainland are any obstacle to cross-Straits trade settlement in yuan," she added.

Under a cross-Straits agreement, the Chinese mainland had authorized the Bank of China (Hong Kong) Limited, to provide yuan cash settlement services to Taiwan, she said.

"These measures have laid a foundation for a cross-Straits currency clearing mechanism," Fan said.

The set-up of the mechanism has been included into China's 12th five-year development plan starting this year.