Free trade in Taiwan needed to prevent emergence of multiple offshore RMB curves


Taiwan regulators need to allow for free transfer of capital between Taiwan and other offshore renminbi centres in order to ensure the consistency in the offshore rates of the RMB, according to market participants. China and Taiwan signed a memorandum of understanding (MoU) in August this year creating a clearing mechanism for the RMB and Taiwanese dollar, making Taiwan the third offshore clearing centre for renminbi after Hong Kong and Macau. The clearing mechanism will create an offshore re