OREANDA-NEWS. December 25, 2012. People’s Bank of China decided in an announcement to, in accordance with relevant contents of the Memorandum of Understanding on Currency Clearing Between China’s Mainland and Taiwan, authorize Bank of China Taipei Branch as RMB clearing bank in Taiwan upon review.

As a new breakthrough for establishing a currency clearing mechanism between China’s Mainland and Taiwan, it was also an important progress for BOC to speed up its cross-border RMB clearing businesses.

After being authorized as the RMB clearing bank in Taiwan, BOC Taipei Branch will, under the direction of monetary authorities in both Taiwan and China’s Mainland, strictly abide by the regulatory provisions of both sides, earnestly perform its duties and obligations as the RMB clearing bank in Taiwan, actively promote various work as the RMB clearing bank, and strive to provide participating banks in Taiwan with safe, quality and fast RMB clearing services, so as to make new contributions to further promoting the Cross-Strait economic and trade cooperation.

BOC is a major managing bank for cross-border RMB businesses. During the first nine months this year, BOC has handled cross-border RMB clearing businesses with an accumulative amount of RMB1.72 trillion, increasing by 31% year on year. As of the end of September, BOC has opened RMB clearing accounts for more than 800 overseas participating banks. Over the past three years, BOC led the industry with a volume of over RMB 3.8 trillion in cross-border RMB clearing businesses. As RMB clearing banks, branches in Hong Kong and Macau of Bank of China have accumulated 9-year rich operation experience in the field of cross-border RMB clearing; Bank of China (Malaysia) Berhad has also been approved as RMB clearing bank by the local regulator.

In recent years, RMB has been increasingly accepted internationally, and the overseas RMB market has witnessed accelerated development. As the most international and diversified commercial bank in China, BOC, by actively keeping up with this trend, gave full play to its professional advantages in aspects of global institution network and international businesses to vigorously develop its overseas RMB businesses. Up to now, a total of 124,000 individual clients, 3,215 corporate ones and 814 banks from 74 countries and regions in five continents have opened RMB accounts in BOC. By the end of September, the balance of RMB company loans and trade financing from overseas institutions of BOC has reached RMB118.8 billion, an increase of 24%.