Recognizes globalization of the renminbi.
The Central Bank of the Republic of China is holding Chinese renminbi in its foreign exchange reserves portfolio in recognition of the currency’s importance in cross strait trade, said Governor Perng Fai-nan,.
Trade and financial ties on both sides have risen since last year after a renminbi clearing settlement deal was signed. Taiwan aims to become an offshore renminbi trading hub similar to Hong Kong and Singapore.
Perng said there is a realistic need to do so since China has the biggest forex reserves in the world. Mainland China cross-straits trade with Taiwan has reached US$160 billion and China is Taiwan's biggest export market.
Perng did not give details on the size of Taiwan’s renminbi holdings. Taiwan has the world's fourth-biggest forex reserves, standing at US$409.4 billion in August.
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