The Taiwanese government is continuing talks with its Chinese counterpart to reach an agreement on currency swap, in order to strengthen the onshore liquidity of the yuan, Taiwan central bank governor Perng Fai-nan said Monday.
The policymaker, meanwhile, noted that the central bank is not trying to weaken the Taiwanese dollar intentionally. Once the currency-swap agreement is signed, yuan will be included as part of the foreign currency reserve.
In January, the two countries had signed a cross-strait currency clearing agreement, allowing onshore banks to accept yuan-denominated deposits and issue products related to the Chinese currency.
Fai-nan hoped that the the prospective value of the currency to be swapped would be greater than those currently existing between China-Hong Kong and China-South Korea.
The central bank chief also said the bank will take a decision on whether a change in the interest rate is needed or not after considering inflation pressures. Taiwan's inflation picked up to a bigger-than-expected 2.97 percent in February, on higher fuel and utility charges, from 1.13 percent in January.
The economy expanded at a significantly faster rate of 3.42 percent in the fourth quarter than 0.98 percent in the third quarter.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.