Another step to full convertibililty for the yuan

Shanghai eyes free exchange of yuan and New Taiwan dollar

Shanghai has applied to regulators to launch a free exchange between the yuan and the New Taiwan dollar to enhance financial cooperation, the head of the Shanghai Financial Service Office said Sunday.

"With growing trade between Shanghai and Taiwan in recent years, we hope that a free exchange between the yuan and the New Taiwan dollar can be conducted in Shanghai as a trial," said Fang Xinghai at the 6th China International Finance Forum.

"We have applied to the regulators and expect it will be approved soon," Fang said at the two-day forum which ended Sunday.

Shanghai has recently launched a cross-border currency clearing system and Fang expects that it will be extended to Taiwan soon.