Tai­wan lo­cal banks to start in­ter-bank dol­lar clear­ing

The Pak Banker - - Company& -

TAIPEI: Tai­wan will set up a clear­ing sys­tem with lo­cal banks con­vert­ing the U.S. dol­lars held by len­ders on the is­land to boost cur­rency liq­uid­ity, the cen­tral bank said in an e-mailed state­ment.

The new mea­sure will be re­stricted to cur­rency con­ver­sions for trade-re­lated pur­poses, and will "cut for­eignex­change risks" borne by do­mes­tic com­pa­nies, the mon­e­tary author­ity said.

"The new move will make cur­rency clear­ings faster for banks," said Hao-Yun Juan, a cur­rency trader at King's Town Bank in Taipei.

"I think the cen­tral bank will ex­pand to non trade-re­lated set­tle­ments."

Taipei-based Mega In­ter­na­tional Com­mer­cial Bank was au­tho­rized to con­duct the busi­ness start­ing De­cem­ber. - PB News

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