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
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.