Taiwan banks can start yuan transactions

BEIJING - Taiwan banks can start yuan transactions via correspondent banks as long as the island's local authorities approve, Yang Yi, spokesman for the State Council's Taiwan Affairs Office, said Wednesday.

According to the cross-Straits direct currency clearing memorandum, both sides can carry out yuan transactions via clearing banks or correspondent banks, Yang said at a regular press conference.

Yang said that the currency clearing mechanism under the memorandum needed related technical preparation to ensure the operation of the mechanism.

"Currently, money management institutes from both sides are making efforts to realize the monetary clearing mechanism," Yang added.

The mainland and Taiwan signed a direct currency clearing memorandum on Aug 31, under which the two sides reached an agreement to set up a cross-Straits clearing mechanism.

The memorandum is an important step for cross-Straits financial cooperation, which will facilitate investment and trade, and strengthen economic cooperation across the Taiwan Straits, Yang said.