(1) Starting June 30 of 2010, when the government opened up renminbi (RMB) conversion in Taiwan, up until July 31 of 2014, a total of 4,216 branches and 408 currency exchange offices of financial institutions in Taiwan (including banks, credit cooperatives, post offices, the Agricultural Bank of Taiwan and the credit departments of farmers' and fishermen's associations) have been approved to engage in renminbi cash currency exchange operations.
(2) Based on the Cross-Strait Financial Cooperation Agreement which came into effect on June 25, 2009, in terms of monetary management, the monetary supervision authorities on both sides of the Strait will designate commercial banks and other appropriate agencies to handle cash exchange, supply, and returns, as well as develop technology cooperatively to prevent the flow of counterfeit currency. Following numerous consultations between their respective monetary supervision authorities, both sides reached a consensus on renminbi cash supply methods and such operations may be directly handled by designated banks on both sides.
(3) Since July 13, 2010, approved financial institutions have been able to sign RMB spot cover agreements with the Bank of China (Hong Kong) Limited. This has helped to stabilize the supply of RMB cash and new banknotes. Since October 20, 2010, the Bank of Taiwan and Mega Bank have accepted orders from domestic financial institutions, and have also supplied cash starting October 26 of the same year.
(4) Under the Cross-Strait Financial Cooperation Agreement, the two sides have agreed to gradually establish a cross-strait currency settlement mechanism and strengthen cross-strait cooperation on currency management. After extensive contact and communication between Taiwan's Central Bank and the Mainland's People's Bank of China, the MOU of Cooperation on Cross-strait Currency Settlement was successfully signed on August 31, 2012.
(5) Taiwan's Central Bank and the Mainland's People's Bank of China respectively announced on September 17 and December 11 of 2012, that the Bank of Taiwan's Shanghai Branch and Bank of China's Taipei Branch would be the New Taiwan dollar clearing bank in the Mainland Area and RMB clearing bank in the Taiwan Area.