Taiwan central bank adds Chinese yuan to forex reserves portfolio
TAIPEI (AFP) - Taiwan's central bank has added the Chinese yuan to the island's foreign exchange reserves portfolio, a top official said on Wednesday, reflecting closer economic ties.
"Currently the central banks in 11 countries and two international currency organisations hold Chinese yuan... (Taiwan's) central bank has already held Chinese yuan in foreign exchange reserves," the central bank's governor Perng Fai-nan told lawmakers without disclosing the amount.
At the end of August Taiwan's forex reserves hit a record high of US$409 billion (S$513.4 billion), up by US$270 million from the end of July due to the central bank's investment returns.
Taiwanese banks in February started allowing customers to open Chinese yuan accounts and remit funds to the mainland, in an attempt to reduce the risk of exchange rate fluctuation and the cost of currency exchanges.