TAIPEI, Jan 17 (Reuters) - Taipei Forex Inc., Taiwan’s biggest foreign exchange broker, is planning to launch swaps for the Chinese yuan against the U.S. dollar soon, two sources with knowledge of the plans said on Thursday.
The move, which one source said should begin by the end of March, comes as Taiwan and China are finally set to allow Taiwan banks to conduct renminbi (RMB) business on the island.
An official of Taiwan’s central bank said it needs to grant approval before the launch takes place.
Taiwan and China signed a clearing system for each other’s currencies in September, kicking off the last leg of an economic integration that has drawn the sides closer and helped lift trade to more than $160 billion annually.
Bank of China has been appointed as the clearing bank for yuan transactions in Taiwan. (Reporting by Lin Miao-jung; Writing by Faith Hung; Editing by Richard Borsuk)