Taiwan's chance of becoming offshore yuan center to be decided by market

BEIJING, March 13 (Xinhua) -- A senior mainland financial official said Wednesday that whether Taiwan would become an offshore trading center for the yuan should be decided by the market.

"Things will be settled when conditions are ripe," vice governor of China's central bank Yi Gang made the remarks when asked whether the central bank would support Taiwan to become an offshore yuan market.

Yi said some important financial centers might become offshore yuan trading markets in the future as a result of market demands and competition.

He said the Chinese mainland and Taiwan have already formed a monetary settlement mechanism since they signed a memorandum on currency clearing in August last year.

The two sides could discuss a currency swap agreement if cross-Strait trade demands higher level of financial cooperation, he said.

In February, a total of 46 designated foreign exchange banks and financial institutions in Taiwan formally launched their yuan business after signing currency clearing agreements with the Bank of China's Taipei branch, the clearing bank for yuan transactions in Taiwan.