Published at 031:48 (GMT) 29 Aug
The central bank commented that Taiwan will start providing an offshore spot rate and interbank offered rate between the Chinese yuan and the US dollar starting on Monday, giving a formal benchmark for market participants to reference when pricing yuan-denominated loans, interest rate contracts and derivatives products.
The Taipei Foreign Exchange Market Development Foundation will be the mechanism's management institution, with Thomson Reuters Corp selected to be an official calculating agent for the benchmark.
The calculation of the two benchmark rates is to be based on the daily rate contributed by 15 regional and global banks in Taiwan, and is to be published at 11:15am every trading day. Taiwan is the second offshore market to offer a spot fixing rate and interbank offered rate for the yuan, following Hong Kong.
On FX, USD/TWD off from near 2-m lows as prices opened a tad firmer tracking the broader USD/Asian upmove as risk sentiment soured on news of Russia invading Ukraine. Prices are likely to remain steady into the weekend. TAIEX in mild red at the time of writing. BB
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