Perng Fai-nan, governor of the Central Bank of China (CBC), announced yesterday (Dec. 19) that the CBC has embarked on the establishment of “foreign-currency settlement platform,” which will start operation in the middle of next year. Settlements of foreign currencies, including U.S. dollar and renminbi, can be carried out via the platform, without the need of resorting foreign institutions abroad, leading to higher efficiency and lower cost.

Perng expressed the platform will enable Taiwan to link up with the global market, eliminating time lag for remittances.

An industry insider noted that the “foreign-currency settlement platform” will be established by a financial information company, which will be in charge of all the foreign-currency settlements in Taiwan.

The CBC and the Financial Supervisory Commission (FSC), however, have different opinions about the establishment of the “foreign-currency settlement platform.” The FSC leans towards the establishment of the foreign-currency settlement platform by the financial information company, while the CBC favors the formation of a joint-venture company by the CBC and the financial information company, to carry out all the foreign-currency settlements in Taiwan.

Perng noted that at present, the “foreign-currency settlement platform” in mainland China is established by People’s Bank of China, while in Hong Kong, the platform is in the charge of a company jointly established by bankers association and the regulator.