The new service allows banks to directly carry out RMB clearing and settlement in Taiwan. It is a faster, more efficient, reliable and secure way of processing RMB amongst all participants, while reducing conversion costs associated with offshore clearing and settlement.

Early this year, the Central Bank of the Republic of China (Taiwan) launched a new foreign-currency clearing and settlement platform which initially handled US Dollar (USD). Running on the SWIFT network, it links settlement banks and participating banks for different currencies and centralises cross-bank clearance for these transactions.

Alain Raes, Chief Executive, Asia Pacific and EMEA, SWIFT, says: "A cost-efficient, reliable and secure foreign-currency clearing and settlement platform is the essential component of any financial market infrastructure. We are pleased that the Taiwan RTGS system has been running smoothly since its launch and is now extended to handle RMB. It will help to accelerate the development of financial markets in Taiwan and facilitate the internationalisation of the RMB."

This is a significant development as the RMB market is set to expand further, and a growing number of market participants are now engaging in RMB business. The new service will strengthen the overall competitiveness of Taiwan's banking industry and promote wider use of RMB by financial institutions and corporates.

SWIFT is used by payment market infrastructures in 10 other Asia-Pacific countries and territories, including Australia, New Zealand, the Philippines, Thailand, Sri Lanka, Singapore, Fiji, Hong Kong, Macau and Taiwan, and in 70 RTGS systems around the world.

SWIFT has been in Asia Pacific for over 30 years, starting in Hong Kong and Singapore. Three regional offices have been opened in Asia since 2005, bringing the total to eight commercial and support offices, as well as an Operational Central Control Centre and a new corporate services hub that opened in Kuala Lumpur earlier this year.
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