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The People's Bank of China has appointed Bank of China's Hong Kong arm to handle yuan transactions for Taiwan banks. That's according to a statement, posted on the central bank's website on Tuesday.
The People's Bank of China said the authorization will help solve problems in yuan clearing with Taiwan, including unstable cash note supply, damaged notes and high exchange costs.
The arrangement was made under the Cross-Strait Financial Cooperation Agreement, signed last year between the Chinese mainland and Taiwan.
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