Trial scheme on outlying islands could be extended
Taiwanese authorities will consider allowing transactions with the mainland currency inside Taiwan if the trial exchanges on two offshore islands are successful, Premier Frank Hsieh Chang-ting said yesterday.
'We will consider extending transactions to certain areas in Taiwan proper if the trial operation on Quemoy and Matsu proves successful,' Mr Hsieh said.
However, he emphasised that the proposal would require the approval of the Mainland Affairs Council and the National Security Council.
Since October 3, Taipei has allowed the currency exchanges on the two defensive outposts, which are the only two areas conducting Taiwan's 'mini-three links' with the mainland cities of Xiamen and Fuzhou .
But only businessmen returning to Taiwan through Quemoy and Matsu, and residents of the two islands are permitted to exchange the yuan and the New Taiwan dollar. Other Taiwanese are not allowed to conduct exchanges when they travel to Quemoy and Matsu.
Saying the currency exchange service was beneficial to the public and the government, Mr Hsieh said even if the government prohibited the activity, Taiwanese people would still do it through the black market or when they travelled to the mainland.