Taiwan banks' RMB deposits top 60b yuan

TAIPEI - Outstanding renminbi-denominated deposits at financial units in Taiwan hit a record high of 60.26 billion yuan ($9.72 billion) as of May 15, the island's monetary authority said on Friday.

The figure represents a 54.5-percent surge from the end of February and a 24.8-percent increase from the end of March.

Market analysts attributed the fast expansion in yuan deposits to the currency's steady appreciation and warming cross-Straits economic ties.

According to a Standard Chartered report, Taiwan will accumulate a yuan-denominated fund pool of between 100 billion and 150 billion yuan by the end of 2013.

Taiwan's banking sector has been allowed to conduct yuan-denominated transactions, such as deposits, lending and remittances since Feb 6, after a cross-Straits currency clearing mechanism was established.

The island is now the second major market after Hong Kong that is able to clear transactions in the yuan, as the Chinese mainland has stepped up efforts to foster the global use of the currency.